Thursday, October 28, 2010

Making a case for Sprint.

Sprint fell close to 10% to 4.30 and for once I was glad I didn't have them, even though they were just 3.25 just a few months back. (I was this close to buying them ugh).

Anyway, to make a case for Sprint, we need to look at a few things. First, all communication companies have an expanding wireless consumer base and a shrinking wireline business. This is to be expected as we go to the 3G/4G world where smartphones are the up and coming "thing" in the new decade.

And we see that Sprint has a growing user base of 3G/4G smartphone users. 60% of new users on the Sprint network signed up for a smartphone. This translates into consistent long term income for the company and in the long run it might afford them some infrastructure upgrade to expand their 4G network.

The nations largest 3G network still belongs to Verizon, and bad news for Sprint, the big red folks at VZ are planning to crash the 4G party by launching their own version of 4G LTE network in 38 major locations. (10x bandwidth, what up?)

And if rumors were true, VZ would be adding the much coveted iphone to their lineup sometime early next year. If so it might steal customers away from T, as well as S, since it would be the first company to offer the Apple iPhone and 4G network at the same time.

But all is not lost, with the bump to 4G network, VZ looks to be spending multiple billion dollars over the next few years to increase market. How long will it take for them to make the money back?

If we're looking for an immediate cell provider that has the infrastructure readiness to service a broad number of customers, look no further than sprint and their already mature 4G markets.

I do wonder why Sprint has their 4G networks set up in the most remote locations though.

About this blog

A lot of stuff about what I think, and not what I am about. Which is good, because I would be able to make fun of Notre Dame, Wisconsin, Penn State, and discuss on our futility against Ohio State. (But Woo Shoelace!)

I still think the word "god" should not be capitalized, because like oxygen or air or universe, it's an entity, and is not specific or special in its meaning.