Sprint parent SoftBank bought around $87 million more shares in the carrier, a sign of confidence that SoftBank is standing behind Sprint as the company continues its turnaround push.
Over the past year top executives from Sprint parent SoftBank floated the possibility of selling Sprint to both Comcast and European telecom firm Altice, according to a Wall Street Journal report, which cited unnamed sources. The efforts never went anywhere and SoftBank CEO and Sprint Chairman Masayoshi Son has firmly backed Sprint, but turning around the carrier has been anything but smooth for Son and SoftBank.
Sprint parent SoftBank considered selling Sprint at one point but is resolutely backing the carrier now, according to SoftBank CEO and Sprint Chairman Masayoshi Son. Meanwhile, financial analysts are divided around how much the leasing arrangements for handsets and network gear Sprint and SoftBank are creating will help Sprint.
Former Sprint CEO Dan Hesse said he regrets causing so much disruption to Sprint customers' service as Sprint plowed through its Network Vision network modernization in 2013 and into 2014. However, he said despite the pain for customers, which was more than he had anticipated, Sprint's network upgrade laid the foundation for what will be a "spectacular" network.
Sprint (NYSE: S) revealed a few more details about its network densification efforts but did not disclose its vendor partners for the project or exactly how many macro cell sites and small cells it will add to its network. However, Sprint CEO Marcelo Claure said that "nearly all" of Sprint's existing macro cell sites will be upgraded to support 800 MHz, 1900 MHz and 2.5 GHz for LTE, which he said will improve coverage and capacity across the network.
Sprint lost its spot as the No. 3 carrier in the U.S. market to T-Mobile US in terms of total subscribers during the second quarter. However, Sprint also noted it is continuing to make progress on its turnaround and said it added postpaid phone customers in May and June and recorded its best-ever Sprint platform postpaid churn.
Sprint Chairman and SoftBank CEO Masayoshi Son is taking a more active role in planning Sprint's network densification project according to a report from Wall Street firm Macquarie Capital. Further, analysts there think Sprint is going to embark on a plan that will be primarily focused on deploying small cells.
Sprint CEO Marcelo Claure left for Japan yesterday to meet with SoftBank CEO and Sprint Chairman Masayoshi Son to discuss Sprint's network densification project. According to one Wall Street research firm, Sprint may soon boost its capital expenditures for 2015 once Son signs off on the plan.
SoftBank CEO Masayoshi Son promoted former Google executive Nikesh Arora to the role of president of SoftBank--and essentially designated Arora as his successor, an indication that SoftBank will continue to look beyond its native Japan for growth. Son said SoftBank, which controls 80 percent of Sprint, will be a global company and will continue to invest in mergers and acquisitions following its $21.6 billion deal to take control of Sprint in 2013.
Sprint parent SoftBank plans to clear out most of the staff of its Silicon Valley offices, according to a Reuters report, following SoftBank's aborted effort to merge Sprint with T-Mobile US.