Today Sprint Nextel Corp. posted a larger 3rd quarter loss but added the most customers in the past 4 years. Sprint is the nations 3rd largest wireless carrier and added approximately 644,000 new customer to its network in its second straight quarter of substatial growth. Sprint shares fell 9.5% to $4.31 in recent trading, but Sprint looks forward to its prospected turnaround reliant on its advanced 4G services.
The timeliness of this comeback however is greatly dependent on Clearwire Corp. Sprint holds a 54 percent stake in Clearwire and is a wholesale customer of the mobile WiMAX operator. Sprint is pushing its 4G-compatible Evo and Epic smartphones as an advantage over its larger rivals. But that advantage is to be short-lived as Verizon Wireless is set to develop its own 4G network in 38 cities by the end of the year, and not to mention add the iPhone to its already prevailing phone selection.
Clearwire is crucial to Sprint’s success because it is the backbone of the companies 4G network. Presently Clearwire is in some financial trouble injuring Sprint’s 4G master plan. Sprint is considering financing the company even further but it is still unsure. Sprint is optimistic as they continue to expect more customer growth in the 4th quarter.
Source; http://online.wsj.com/article/SB10001424052702304173704575577893941805792.html?mod=WSJ_Tech_LEFTTopNews
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