Sprint promises unmatched 4G speeds; $2.5B raised in debt offering

By leveraging spectrum found in three different bands (including city-friendly 2.5GHz. spectrum acquired from Clearwire), Sprint's (S -0.1%) Spark 4G LTE service will offer download speeds of 50-60Mbps in the near-term and (with the help of carrier aggregation) possibly 150-180Mbps in two years, says CEO Dan Hesse at a UBS conference.

Sprint is in the midst of rolling out Spark in a handful of major cities (service was just launched in Chicago), but Hesse promises much wider availability next year. He also admits Sprint's breakneck LTE buildout has caused some near-term service quality issues; Consumer Reports recently ranked Sprint dead last among U.S. mobile carriers in a customer service survey.

Verizon, which continues to have a 4G coverage edge over rivals, is in the midst of tripling its 4G capacity in major markets.

Separately, Sprint has priced its debt offering. The company is selling $2.5B worth of 2024 notes carrying a relatively steep interest rate of 7.125%.

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Comments (3)
  • 96815234
    , contributor
    Comments (2470) | Send Message
    They will spend their cash with unmatched speed.
    10 Dec 2013, 06:21 PM Reply Like
  • hhess13892
    , contributor
    Comments (760) | Send Message
    After Softbank bought what was then Vodafone Japan, it launched a price war against KDD and NTT which, within a few years, had it as the number one network in the market, a position it still holds.


    History will repeat itself. May not get to number one but you can count on the price war.
    10 Dec 2013, 07:20 PM Reply Like
  • 96815234
    , contributor
    Comments (2470) | Send Message
    Sounds like everybody loses...especially the leveraged/ those late to the game.
    10 Dec 2013, 07:24 PM Reply Like
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