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