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Analyst: Sprint and Clearwire to reunite?
ABI analyst Phil Solis says Sprint is under increasing financial pressure because its subscribers are leaving the carrier for rivals AT&T, T-Mobile USA and Verizon Wireless, but that doesn't mean Sprint should abandon its WiMAX plans.
"Many say Sprint should focus on its core business rather than push forward with WiMAX, but this idea is nonsensical," Solis wrote in a research note. "It's ironic," continued Solis, "because Sprint's investors seem to be pressuring the company to slow down if not halt completely its WiMAX deployments; meanwhile this could be the best avenue to turn the company around."
One of the key turning points for Sprint's investors' interest in WiMAX was when Clearwire and Sprint called off their plans to pool their WiMAX networks. However, ABI points out that while many believed that the contract was severed, the two companies actually never formed an official contract. A break-up never occurred and a partnership is still possible. Perhaps one just like the original.
For more on Sprint's WiMAX plans:
- check out this press release
Comments
Posted by garitaar | November 28, 2007 - 10:20pm
The article makes it sounds like WiMax is needed to save Sprint. Sprint already has the best technology. Their mistake was to get involved with iDEN. CDMA customer growth is still good, but the iDEN users are for some willing to depart Sprint when those iDEN users are actually only seeking to leave Nextel/iDEN. Had Verizon been silly enough to purchase Nextel, then it would be Verizon who would be losing customer-count right now.
WiMax will be very nice, but it will not save the company. Better information to customers regarding options for iDEN users, and better customer service is what will save Sprint. Sprint already has the best network - a very well performing CDMA/EV-DO network - and great plans for the future including the Internet connected low cost base station for homes. Sprint's gap is in their failing to get that message out to existing and potential customers.
Posted by Anonymous | November 29, 2007 - 1:49pm
Phil Solis tends to be very biased in favor of WiMAX, so I read his articles with a grain of salt.
Posted by MJDelaney | December 28, 2007 - 4:04pm
If you can read a financial statement, you know that Sprint desperately needs a large, new, quickly growing source of revenue that is derived from a competitive differentiator that separates and elevates its service from the glut of wireless/wired/broadband/multiplay telecom/cable/wireless service companies now drowning the world in sub-par customer satisfaction. WiMax was (is) a good, clear,. solvent, sensible path. They should admit their mistakes, grow some balls and get back in bed with Clearwire, buy Alvarion and make a strong marketplace move. Otherwise, it's just a long slog to a slow death, I'm afraid.
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