Sprint's LTE Launch: Make or Break for Third-Largest U.S. Carrier
Sprint, the third largest wireless carrier in the U.S., finds itself in a critical situation. After five consecutive years of losses, the company is set to launch its LTE network on July 15 in five cities. This move is seen as a make-or-break scenario for Sprint to catch up with market leaders Verizon and AT&T.
Sprint's financial struggles are evident. Despite committing to sell $15.5 billion worth of iPhones to Apple over four years, the company has lost around 192,000 contract customers while shutting down its Nextel network. To turn things around, Sprint plans to spend $10 billion on network expansion efforts. However, the company is currently selling LTE-enabled smartphones without a matching network, which could be a risky strategy.
The upcoming July 15 launch is crucial for Sprint. Verizon's LTE network currently covers 304 cities, while AT&T covers 41, both significantly ahead of Sprint. Investors are watching closely, with some considering selective investments in sectors like banking and basic materials, as well as high-yield corporate bonds and emerging market bonds. Undervalued quality dividend stocks with durable payouts and economic moats are also seen as promising options.
Sprint's LTE network launch on July 15 is a significant step in its efforts to compete with Verizon and AT&T. The company's future depends on the success of this launch and its network expansion efforts. Investors are taking a wait-and-see approach, with some considering diversified fixed-income strategies to navigate economic uncertainty.
