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Joshua007

Joshua007
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  • Sprint (S +0.6%) raises its offer for Clearwire (CLWR +1.7%) to $5/share, well above Dish's (DISH -2%) $4.40/share tender offer. Clearwire's special committee is endorsing the offer (reversing its prior recommendation for Dish's bid), and is rescheduling a shareholder vote set for June 24 to July 8. Clearwire shares are halted; Dish's have spiked lower. Will Charlie Ergen return fire? [View news story]
    As others have speculated, Dish is looking to be brought to the negotiating table about a spectrum hosting deal that will benefit Dish. Sprint (should) sell excess capacity to dish, and agree to host their network, but only with terms that are beneficial to sprint as well as dish. I do not see a reason someone would want to use dish's satellite TV service, but with a competitive LTE network they would give some unique options for watching TV programming, but will people want dish controlling the content of the internet they provide... only time will tell.
    Jun 20 10:51 PM | Likes Like |Link to Comment
  • Clearwire's (CLWR +0.5%) board plans to endorse Dish's (DISH -3.9%) $4.40/share tender offer and postpone a Thursday shareholder vote on majority owner Sprint's (S -0.1%) $3.40/share buyout offer, the WSJ reports. The reports comes two days after Sprint gave its support to SoftBank's (SFTBF.PK) revised offer for the company, and set a June 18 deadline for Dish to make its final offer. Sprint and Dish have been arguing over the legality (I, II) of Dish's bid for Clearwire. (previous[View news story]
    As long as sprint still has clearwire, I see no problem letting Dish purchase a strategic amount of shares and help fund the LTE roll-out. Dish wants different things out of their purposed LTE network, as they want to have streaming video from their satellite service available everywhere. Clearwire can host this spectrum and provide extra capacity where needed, while still helping sprint offload capacity at the same time.
    That being said, I would still rather sprint buy clearwire outright as they would be much more aggressive with their plans for the spectrum if they did not have to pay usage-based rates, which will limit clearwire's use for now.
    But if this allows sprint to bid on the 600Mhz spectrum without government involvement, it may be a blessing in disguise. Sprint could always buy clearwire outright at a later date, but they will almost certainly pay much more for the company... In this way, matching dish may be the best option. (or bidding dish up and sprint cashing out and purchasing more spectrum elsewhere!)
    Jun 13 01:16 PM | Likes Like |Link to Comment
  • Ford (F) says it will pass its full-year record for hybrid sales this month as demand for the new C-Max and electric Fusion looks strong. In April, the automaker delivered 35,034 Fusion hybrids compared to the 3,257 Camry and 19,889 Prius hybrids Toyota moved. What to watch: Analysts are still bickering over the impact of lower gas prices on hybrid demand heading into the summer, but Ford appears poised to grab even more hybrid market share. [View news story]
    I thought the numbers seemed a little off, but I still think that ford has some of the best looking hybrids. The cost of gas going down is not going to affect the sales of hybrids in the future as much as it did in the past. Why? Because they are not as cost prohibitive anymore, as well as people realizing that fuel can always go up, and any temporary relief at the pump will not last indefinably. As more hybrids get made, the economies of scale make the components less expensive per unit, and as companies build more they will improve the technology. Now, I realize that they will always cost more than their standard engine counterparts, but the cost will not be astronomical and more and more people will opt for the higher MPG. Also, do not discount the effect of people becoming more and more environmentally conscious, especially in other markets across the world.
    May 4 11:39 AM | Likes Like |Link to Comment
  • Is Apple (AAPL -0.5%) finally close to scoring an iPhone deal with NTT DoCoMo (DCM)? The president of the top Japanese carrier, which has been bleeding share to iPhone-carrying SoftBank (SFTBF.PK) and KDDI, says his company is willing to sell the iPhone if it can reach a mutually beneficial deal. DoCoMo and Apple have reportedly been at odds in the past over Apple's purchase requirements and DoCoMo's insistence on pre-installing some of its apps. (China Mobile[View news story]
    I agree with kroyals, why scoff at potential sales? Apple has even now cut deals with pre-paid carriers that have significantly less customers. The main reason that they even have the purchase commitments is so that they can produce enough phones for each specific carrier and so that apple knows that they will not favor the rival phone manufacturers, leaving apple with excess capacity at production facilities & excess supply that they cannot sell. I prefer the normal supply and demand that I learned in economics, but apple demand is high enough for them to negotiate more favorable terms.
    Jan 11 04:03 PM | Likes Like |Link to Comment
  • Sprint In Last Place After Recent Merger? [View article]
    The problem that exists with both Leap & Metro is that they use the AWS band as well as PCS band of spectrum. Sprint has just aligned themselves a plan to make all service in the 800/1900/2600MHz bands & would have to re-do all network vision towers to gain any advantage with the AWS (1700/2100MHz) band. And they simply won't do that, so the options would be to sell/swap the spectrum. In both cases, you also get pre-paid customers & lot of debt, as well as having to shut down another redundant network to make money. Personally I am for them making another M&A move. I wish they had bought all of US Cellular, as their spectrum in the cellular (850MHz) band would have helped sprints rural coverage & still fit in their network vision plans.

    And the reason I was suggesting that they wouldn't party for the defected subscribers from the T-Mobile/Metro deal is because even without incentives, Sprint and their prepaid brands are a much better value than the AT&t/VZW duopoly can offer. If sprint offers even a small incentive, it is still far less costly than trying to out-bid T-Mobile...
    Nov 8 09:47 AM | Likes Like |Link to Comment
  • Sprint Nextel (S -1.2%) agrees to to pay $480M to U.S. Cellular (USM) for PCS spectrum and 585,000 subscribers in Illinois, Indiana, Michigan, Missouri and Ohio. The deal, which includes the assumption of liabilities, will "significantly increase Sprint's network capacity and improve the customer experience." (PR[View news story]
    Once Sprint fully gets the 8b from Softbank, they should buy all of US Cellular. Integrating their 700MHz LTE spectrum will be a challenge, but the enhanced rural coverage (including cellular 850MHz for voice & 3G) would allow them to really threaten the att/vzw duopoly. Also, I think they should look into leap wireless. They would have to sell off the AWS spectrum to T-Mobile (or att/vzw), but they might be able to work out a trade for more PCS spectrum. Leap's problem is that they are all prepaid and cheaper plans, but their spectrum licenses cover a larger area than their service actually reaches currently. If sprint was able to add that spectrum to their existing towers & place their spectrum on leap towers that weren't redundant, that would help their competitiveness as well.
    Overall, I am happy to hear they are doing deals, but I would like to see details on which customers sprint is getting and how much PCS spectrum is involved in the deal. Also, why is USC paying with customers & spectrum, as these are the 2 most valuable assets for a wireless company...
    Nov 7 09:18 AM | Likes Like |Link to Comment
  • Clearwire (CLWR +6%) treks higher after Mount Kellett Capital, which owns 7.3% of the carrier, issues a letter voicing concerns about Sprint's (S +0.8%) Eagle River share purchase, which leaves it with a majority stake and board control, and the potential for a conflict of interests. Mount Kellett wants Clearwire to "sell a substantial portion of the Company's excess spectrum," something Sprint may not be keen on doing. (also[View news story]
    I agree with head coach, they want the stock to appreciate so they can make back some of their losses, but that is not in Clearwire's best interest. Because of the type of spectrum Clearwire has, they could never economically deploy a truly nationwide service. 2500-2600MHz spectrum will only ever be used in dense urban environments, and since there is usually decent coverage by all carriers, they need to differentiate themselves by offering more speed & capacity than their competitors. If they sell their spectrum they lose all of their competitive advantage!
    Nov 1 04:22 PM | Likes Like |Link to Comment
  • Sprint (S +0.5%) acquires control of Clearwire (CLWR -8%) after buying out one of the the latter's other investors, Eagle River Holdings, with the deal giving Sprint a stake of 50.8%.
     [View news story]
    Under the structure of Clearwire, sprint already owns the majority stake of the spectrum. The spectrum technically sits in a seperate Clearwire & Sprint owned entity where sprint owns 50+%. It was set up this way so that sprint would be given the option to block spectrum sales... That was from another article over a year ago, so unless something changed since then, they were always in control of the spectrum.
    Oct 27 12:54 PM | Likes Like |Link to Comment
  • Sprint (S +0.5%) acquires control of Clearwire (CLWR -8%) after buying out one of the the latter's other investors, Eagle River Holdings, with the deal giving Sprint a stake of 50.8%.
     [View news story]
    I agree with you on the last point, Clearwire can and needs to support many more subs than Sprint alone will provide in the first year of Clearwire's TDD-LTE. This is important to Sprint as well because without the other wholesale customers, the economies of scale will not be realized. This is mainly because of how close the towers need to be placed in a city to provide good coverage with the 2500MHz spectrum, it's very capital intensive and will not turn profit until there is high traffic on their network. The reason Sprint wants control of the board is to make sure the same thing doesn't happen like when they deployed WiMAX, where they didn't cover every city fully and burned through cash and had to stop deployment.
    Oct 20 12:48 PM | 1 Like Like |Link to Comment
  • Sprint (S +0.5%) acquires control of Clearwire (CLWR -8%) after buying out one of the the latter's other investors, Eagle River Holdings, with the deal giving Sprint a stake of 50.8%.
     [View news story]
    That depends on the structure of the holdings, their past owning of 50+% was b/c of new debt that didn't change the voting structure ofthe company. Now they are just looking to gain shares that will give them voting control of the board... Clearwire will change mobile internet as we know it if implemented properly, so sprint wants to make sure its run properly.
    Oct 18 08:48 AM | 1 Like Like |Link to Comment
  • Sprint In Last Place After Recent Merger? [View article]
    Wow, you really have no idea about anything technological... Adding spectrum will not make sprint finish their LTE faster, increasing capital and getting more contractors to the towers to upgrade them will increase the speed. Sprint has 20MHZ of spectrum that will be used for LTE by the end of next year, and their network vision plan will allow them to deploy that spectrum easily and upgrade to LTE-Advanced as soon as it is commercially available. Their 5x5MHz PCS g-block spectrum is completely vacant and already being deployed, while the 800MHz spectrum must be vacated of the iDEN network by june of next year so that they can add another 5x5MHz LTE carrier.
    T-Mobile is primarily looking to spin off the company as an independent US company so that they can slowly exit the US market. Metro needs a larger company because they do not have enough spectrum to launch LTE in many cases and are loosing customers to the larger companies.
    The fact that they are not using similar technologies means that there will be customers that will leave the combined company, and sprint should stand to receive a share of those customers, without spending a dime! This will help sprints bottom line, and ultimately make both companies stronger.
    Oct 4 07:35 PM | 2 Likes Like |Link to Comment
  • Sprint's Pullback Is A Buying Opportunity [View article]
    T-mobile is trying to effectively leave the US market, and this is one step closer to that happening. When sprint went to purchase metro earlier, their stock was teetering on death, so a merger was out of the question and they were going to purchase the company... Now that they are looking better financially they might have that option of a merger and they would gain more immediate synergies than the t-mobile deal.
    More than likely, as is being discussed on several other forums, they would like to make a play for some of Metro's spectrum. In all seriousness, sprint will not want to incorporate any of the AWS spectrum holdings because it is not nationwide and would cost a lot more to integrate into their network. Even if sprint was to buy Metro, they would probably sell t-mobile the AWS, but that would not leave t-mobile with an exit from the US market.
    So, I would assume that t-mobile wants this deal to go through so that they can form the new combined company, and to get sprint off its back it will sell a small amount of PCS spectrum where sprint needs it. Everybody wins... hopefully (and this is purely speculative, I have no knowledge except what I can find on this and other sites)
    Oct 4 06:23 PM | Likes Like |Link to Comment
  • Sprint's Pullback Is A Buying Opportunity [View article]
    yes, you are right about shooting themselves by buying any company... but in the case of these 3 companies, they are all compatible with sprint, but not t-mobile... sprint could easily buy the companies and push a software update that allows the handsets to see sprint towers as native coverage, and ignores the other airwaves. They could then sell the extra spectrum and make back some of the money they spent on the company, while retaining the customers. Using the new Network Vision hardware installed at the towers, they could just send a software update and basically install a network card at the base... and they would have additional capacity at every site in the license area. Then they could shut down the excess towers from the merger, giving them additional customers and incremental increases in cost (although large upfront costs of acquiring the companies would be high, especially while they are modernizing their whole network)

    T-Mobile has none of these advantages... and will have to wait till all the customers have vacated the network to re-use the spectrum... just like sprint is doing with nextel.

    All I can say is 'GOOD LUCK' to t-mobile trying to retain all the metro customers, and that sprint will be happy to gain the defecting customers without buying the company!
    Oct 3 03:14 PM | Likes Like |Link to Comment
  • Sprint's Pullback Is A Buying Opportunity [View article]
    The problem with metro is that they have little that sprint really wants...their 1900 MHz pcs spectrum is located in only 6 cities. Sprint will not want to incorporate their AWS spectrum b/c they are already supporting 3 different bands. And their network vision plan would have to add additional panels to each tower. Now if sprintwas going to make a play for metro, they would probably sell the AWS spectrum to t-mobile anyway. It's worth far more to t-mobile as they try to find spectrum for their lte plans, and it would cost sprint a lot more because neither their towers nor phones support it.

    It has been my personal opinion that leap & US cellular were better targets for sprint, even though they have less customers, they have more comparable spectrum. There would still be some spectrum from those deals that sprint would probably not want to use, and could sell or swap for additional PCS spectrum. (and possibly gain the PCS spectrum that T-Mobile got from metro anyway.)
    Oct 3 10:13 AM | 1 Like Like |Link to Comment
  • Sprint's (S) latest tactic for halting share losses to AT&T and Verizon: the carrier is offering $400 of in-store credit to families who switch 3 or more lines from another carrier to a Sprint Everything Data Share or Simply Everything Data plan. The promo, which lasts until Sep. 15, comes shortly after Sprint began offering $100 AmEx gift cards to new customers, and led the way in slashing iPhone 4S prices. [View news story]
    The problem that I was seeing with this is that the math of incentives make quarterly earnings go to hell in the hopes that it will lead to long term stability. The people that claim that this is wisdom are not the same people as the investors that are looking for a return in the near future. I also do know that it is critical that they increase their customer base, and in the more profitable 'post-paid' sprint brand... but this is a very desperate move to unload an inventory of iPhones to new customers right before the next one releases.

    The truth of the matter is that a typical family plan that has 4 smartphones on sprint is $210/mo before taxes or additional services. When they acquire another family plan with 4 lines they will pay out the subsidy's per phone at $350-$450/phone on the account. Let's split the difference and say that only half of the lines will use the iPhone, bringing the average to $400 and the total subsidy to $1,600 for the family plan. Now the new incentive is to add another $400 to this subsidy, bringing the total to $2,000 average subsidy per family plan. This means that sprint will not make a profit on those accounts until the 9th month instead of the usual 7th month.
    If this promotion actually works to bring thousands of customers to sprint's doors (which might happen as students are going back to school and people are out shopping already) they could see a huge increase in losses this upcoming quarter. If we use the number of new iPhone customers from last quarter as an example(600,000), that would equate to 150,000 additional family plans. At an average cost of $2000 per plan it would cost sprint $300M in the near term and the costs wouldn't be recouped until next April. This also does not account for subsidies for current users upgrading or the effect that the launch of the next iPhone will have also on the quarter. Now for my example, it is only 60M higher in cost than if they could attract those customers without the incentive, which doesn't sound bad. The only problem is that when you add the effect of this additional subsidy to the fact that many people will undoubtedly upgrade or join sprint for the next iPhone, we are looking at a subsidy cost in the Billions just for the quarter! This in addition to aggressive spending on cap-ex for their Network Vision upgrades for LTE, and I could see the stock take quite a hit. Subscriber growth alone I do not see stopping the stock from taking a hit, as they will likely not beat the analysts numbers.

    Now after May of next year, I would suggest that every investor be locked into sprint, as all of these incentives and subsidies from this and the fall iPhone launch will be paid off, and there will be a fresh wave of positive cash flow from these accounts. That coupled with the fact that the new LTE network should be more than half way done at that time, means that sprint should have steady organic growth without having to spend as much money on subsidies. Since everyone likes math, if 150,000 family plans get added at once, after they pay off the subsidy Sprint will gain operating cash flow of $31.5M/mo, and net $456M at the end of their 2yr contracts.

    For the long term, increasing the customer base is a good thing as most of the costs for Sprint are fixed costs, meaning that margins will exponentially increase with all additional customers. Their new network architecture will allow for more users to connect simultaneously meaning capacity constraints should not be as much of an issue as in the past, and it's flexible to allow new spectrum to be added quickly and cost effectively when needed.
    Aug 21 11:09 AM | Likes Like |Link to Comment
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