Sprint Bounces: What a Relief

Notablecalls Network [NCN] Telco pinged me this AM: What a relief to see Sprint (S) bounce today... I still don't like the fact that S is trying to deploy Wi-Max.

Me: Think the tower operators move on this?

NCN: It might be slightly positive for the tower companies but remember S has a ton of radio towers inherited from Nextel and pre-merger Sprint. Also recall wi-max allows for wider propagation of radio signals than PCS in 1.9 GHz... so less radio towers are required... I would say barely positive to none for the tower companies... I think Sprint's thinking on Wi-Max is as follows...

Nationwide spectrum used for Wi-Max deployment was purchased for pennies way back in the 1990s (less than a few hundred million) vs. what Verizon (VZ) and AT&T (T) spent for 700MHz so the savings amount to billions. Those billions saved could go towards building a nationwide wi-max infrastructure. Now introduce suckers from cable and Intel (INTC) to throw in the necessary capital. It's a win-win for Sprint. The only caveat is no other global carrier will be using wi-max besides Sprint. That is a no no.

Me: Who's gonna supply the tech? MOT? It's certainly not going to be ALVR.

NCN: I think Intel, Motorola, ... not too sure

The rest of the world will be on a WCDMA/HSDPA standard so why go with wi-max? That's sort of been the argument mentioned by the analysts.

Comments

[Research123]

You are missing the leap frog step here. Sprint can compete directly with cablecos to sell Internete access directly to the home if trhey price this right. Huge potential revenues.