The Federal Communications Commission has banned discussion on the merger, and its expiration has enabled wireless carriers in the US to talk about any potential consolidations and acquisitions. Sprint is one of the Government cell phone service providers that is inclined to be a part of the imminent telecommunications merger.
After the release of its quarterly earnings, the wireless carrier’s CEO Marcelo Claure said that the company is able “to be very patient” with any possible mergers and acquisition.
This year T-Mobile bagged the title of the third largest wireless carrier in the United States, although the Kansas based company still flaunts its major spectrum holdings. During the video conference, Masayoshi, the son of the Chief Executive Officer of Government cell phone service provider, Sprint’s parent SoftBank made a statement “the carrier is more than ready for the recently started “unlimited war” in the country due to the fact that its competitors can’t guarantee a reliable, growing service whose growth is fueled by unlimited data plans due to the fact that they don’t have the necessary spectrum to turn that approach into a sustainable business model”.
Sprint is a well-known cellular phone service firm that has earlier boasted of its spectrum holdings in the context of a potential merger. The company claims to be a worthy acquisition for virtually any wireless carrier in the country because of its spectrum portfolio, supporting a growing team of services with a small investment. However, investment is where Sprint is lacking!
During a recent earnings call with analysts, Claure said that the Government cell phone service provider is “open to potentially doing new acquisitions,” however, going through Sprint’s rising debt details and recent financial performance, many industry watchers are doubtful about its ability to go through with a chief acquisition. In the year 2015, Sprint had $30 billion in long-term debt and it will add around $11 billion of debt maturities by 2020.
The current value of Sprint’s share is $7.89, which is 13% down compared to May 2. Industry watchers are skeptical about its performance due to its weak cash flow. The interest rates on its loans are rising, thereby, disappointing profit margins.
This year T-Mobile bagged the title of the third largest wireless carrier in the United States, although the Kansas based company still flaunts its major spectrum holdings. During the video conference, Masayoshi, the son of the Chief Executive Officer of Government cell phone service provider, Sprint’s parent SoftBank made a statement “the carrier is more than ready for the recently started “unlimited war” in the country due to the fact that its competitors can’t guarantee a reliable, growing service whose growth is fueled by unlimited data plans due to the fact that they don’t have the necessary spectrum to turn that approach into a sustainable business model”.
Sprint is a well-known cellular phone service firm that has earlier boasted of its spectrum holdings in the context of a potential merger. The company claims to be a worthy acquisition for virtually any wireless carrier in the country because of its spectrum portfolio, supporting a growing team of services with a small investment. However, investment is where Sprint is lacking!
During a recent earnings call with analysts, Claure said that the Government cell phone service provider is “open to potentially doing new acquisitions,” however, going through Sprint’s rising debt details and recent financial performance, many industry watchers are doubtful about its ability to go through with a chief acquisition. In the year 2015, Sprint had $30 billion in long-term debt and it will add around $11 billion of debt maturities by 2020.
The current value of Sprint’s share is $7.89, which is 13% down compared to May 2. Industry watchers are skeptical about its performance due to its weak cash flow. The interest rates on its loans are rising, thereby, disappointing profit margins.
See Also: Sprint Boosts Network, Creating 500 Jobs by Adding 105 New Stores
Based on analysis and observations, analysts are skeptical about the sustainability of Sprint’s business model although its performance has highlighted some improvements in the last few quarters as the Kansas-based firm has escalated its revenue and managed to increase its user base with 42,000 postpaid adds.
Sprint’s assets, like spectrum portfolio and networking infrastructure, are heavily mortgaged, and it is still working at a net loss. Let’s see whether Sprint will be able to maintain its position with the potential consolidation with T-Mobile or another firm. Irrespective of what will be the result, it seems that there will be major changes in the wireless industry soon.
Based on analysis and observations, analysts are skeptical about the sustainability of Sprint’s business model although its performance has highlighted some improvements in the last few quarters as the Kansas-based firm has escalated its revenue and managed to increase its user base with 42,000 postpaid adds.
Sprint’s assets, like spectrum portfolio and networking infrastructure, are heavily mortgaged, and it is still working at a net loss. Let’s see whether Sprint will be able to maintain its position with the potential consolidation with T-Mobile or another firm. Irrespective of what will be the result, it seems that there will be major changes in the wireless industry soon.
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