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  1.    #1  
    GSM/EDGE Treo 650 is looking better and better all the time...

    Sprint Posts $1.91 Billion Loss
    On Long-Distance Writedown

    A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
    October 19, 2004

    Sprint Corp. Tuesday reported a sharply wider net loss for the latest quarter after a $3.5 billion writedown of the value of its long-distance network.

    The Overland Park, Kan., telecommunications provider posted a third-quarter net loss of $1.91 billion, or $1.32 a share, including the $3.5 billion asset impairment. A year earlier, Sprint had a loss of $497 million, or 35 cents a share, including a $1.2 billion charge.

    [snip -KR]
    Last edited by KRamsauer; 10/19/2004 at 04:49 PM.
    Off to iPhone land...
  2. #2  
    Funny. Sprint started as a long distance alternative after the break-up of Bell. Now their long distance is their dead weight division.
  3. #3  
    Wireless is what is keeping that ship afloat right now...

    I have not had a 'land line' for over 4 years, using my cell exclusively... as more and more people go to this mind set, ALL local and long distance carriers are going to SUFFER.
    <br><a href="http://www.theused.net/"><img src="http://www.theused.net/images/buddyIcons/buddy_used_02.gif"></a><br><br>Forever in search of the next best thing... is that the 700w?
  4. #4  
    I expect the wireless (PCS) division to be spun off and bought by Verizon Wireless within the next two years. And folks, I don't think there will be an anti-trust issue at all here. If there wasn't one with Cingular-ATT there shouldn't be one here.

    Sprint should really can their long distance service. With the emergence of new technologies (VoIP), Sprint can't really beat 'em - it may just have to join 'em or beat it.
  5. #5  
    Writing off the long-distance network means nothing to Sprint and to the street. Everyone already knew the book value was too high and it isn't a single dime worth of cash from their pocket (which would actually be a bad omen for future capital projects).
  6. #6  
    Quote Originally Posted by illustreous
    I expect the wireless (PCS) division to be spun off and bought by Verizon Wireless within the next two years. And folks, I don't think there will be an anti-trust issue at all here. If there wasn't one with Cingular-ATT there shouldn't be one here.

    Sprint should really can their long distance service. With the emergence of new technologies (VoIP), Sprint can't really beat 'em - it may just have to join 'em or beat it.
    Verizon will not be the one to buy Sprint..... I have read that Nextel will be the most likely company to buy Sprint. Nextel wants to go with CDMA2000 because IDEN is in its last stages of life and Sprint has the spectrum they need. If you noticed, Nextel just bought some 1900 PCS recently. So get ready to be writing Nextel on your checks....
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    #7  
    Quote Originally Posted by illustreous
    I expect the wireless (PCS) division to be spun off and bought by Verizon Wireless within the next two years. And folks, I don't think there will be an anti-trust issue at all here. If there wasn't one with Cingular-ATT there shouldn't be one here.

    Sprint should really can their long distance service. With the emergence of new technologies (VoIP), Sprint can't really beat 'em - it may just have to join 'em or beat it.
    Let's see now -- Sprint should sell its wireless division to Verizon, and fold their long distance division. This leaves Sprint with NOTHING! Are you saying Sprint will get bought? Well sure, that's possible. Bought yes. PCS spinoff no.
  8. #8  
    I dont think Nextel could get the capital needed to purchase Sprint.
  9. #9  
    If it's a stock purchase (don't know the relative sizes) it would require no cash.
  10. #10  
    Sprint has too many liabilities (look at their K) for Nextel to be a player in this. I don't think Nextel is in a position to assume those liabilities - although I don't how much cash Nextel has.

    I see Nextel as a niche player. They've been really trying to penetrate the consumer market for so long now (5 years?). They should stick to their walkie-talkie ways.

    This is all fun speculation, of course. I'm certainly not in any position to seriously opine on a Sprint acquisition. That's what guys who get paid the big bucks do. I don't do this stuff; hence, I don't get paid the big bucks.
  11. #11  
    Quote Originally Posted by Iceman6
    Let's see now -- Sprint should sell its wireless division to Verizon, and fold their long distance division. This leaves Sprint with NOTHING! Are you saying Sprint will get bought? Well sure, that's possible. Bought yes. PCS spinoff no.
    Well, not exactly. That would actually leave them with a profitable local division. But that's not going to happen either. All LD carriers are looking for ways to leverage the massive investment they made in their backbones, that are now self-obsolessed (sp?). The majority of the write down is based on deflated value of it's long haul assets. Interesting that all the larger carriers have chosen to do this at the same time (MCI writes down 3.5 billion, AT&T follows suit, etc.). It's a way to write down the books and slow the bleeding.

    Notice I said SLOW the bleeding. It won't stop until they embrace the new technologies that are fast becoming the norm (VoIP, CDMA/GSM, WiMax, WiFi). "The Last Mile" does not exist any longer. It is now based in central intelligence.

    I don't see this announcement affecting EVDO. It's an opportune time to take the IXC backbone write down (while MCI and others do it), but it doesn't affect the other lines. As for SPCS being sold off, I don't think so. Too many front line carriers are announcing wholesale deals where they will use the SPCS network as their backbone with a branded solution (Qwest and AT&T in the front of the pack).

    My $0.02...
    KitMoni
  12. #12  
    Quote Originally Posted by kitmoni
    Notice I said SLOW the bleeding. It won't stop until they embrace the new technologies that are fast becoming the norm (VoIP, CDMA/GSM, WiMax, WiFi). "The Last Mile" does not exist any longer. It is now based in central intelligence.


    Good job noticing all carriers doing the writeoff. As for new technologies...they all have embrased VoIP...just at their level...not ours.

    My belief...the carrier who will win in LD is not the one who sells VoIP first...but he phone company who decided to rid themselves of all those surcharges and fees.
  13. #13  
    Sprint is retiring tons of debt, their operating income is up and their EPS beat expectation. The article included here refers to the write-off of the value of their long distance assets. Sprint is differentiating themselves from the floundering long distance companies and their financial performance has been excellent. I'm an investor and have seen excellent appreciation in stock value. If anything, I'd guess Sprint would do the acquiring, though the agressive streamlining and elimination of debt does make it look like the company is being gift wrapped for acquisition.
  14. #14  
    Quote Originally Posted by staubio
    I'm an investor and have seen excellent appreciation in stock value. If anything, I'd guess Sprint would do the acquiring, though the agressive streamlining and elimination of debt does make it look like the company is being gift wrapped for acquisition.
    From an industry person ... I would not expect Sprint to do any aquiring. Their balance sheet just won't support it. At best, they might be able to support some level of a stock swap transaction, but they're not in position to acquire any of their current competitors (that is, those that have something they want).

    The truth is they have won some good mind share on the consumer side, and the network "story" is nice (as are some others). HOWEVER, they have poor traction in the all important business sector. Many of the larger businesses try some flavor of their IP VPN and Voice products, but very (VERY) few utilize Sprint as their primary provider, and that number is getting smaller.

    The positive side for Sprint is that consumer mindshare, and most definitely the PCS division. My company's national wireless solution (wholesale SPCS) is not available to me yet, so as of today I'm a loyal customer. I suspect many are like me - very happy with the cost competitiveness of their plan. Yet, disapointed in the lack of advanced handsets versus the competition.

    I, for one, am looking forward to comparing the Treo 650 to other new options coming from SPCS (including Blackberry)...
    KitMoni
  15. #15  
    I agree with staubio above - Sprint is in solid financial shape right now. And though they have the capital to acquire if they want to, I don't see them doing that, and I certainly don't think Nextel (or Verizon) are in position to acquire them either.

    "..double digit customer, revenue and profit growth in Wireless..."

    Doesn't sound like they're in any trouble to me. And for what it is worth, they are making huge strides in partnering in the B2B channel, and with the numerous MVNO deals they've signed lately, I think all of the other carriers (AT&Tingular included) are scratching their heads saying..."How did they do that?"
  16. #16  
    Quote Originally Posted by kitmoni
    I suspect many are like me - very happy with the cost competitiveness of their plan. Yet, disapointed in the lack of advanced handsets versus the competition
    Exactly...I signed up with a decent plan (comparible to other providers)...then after a year got an amazing retention deal...and am looking forward to getting more from retention this december/january.


    Retention really does work...as Id find it hard to leave for less minutes costing me more (even if verizon has better coverage).
  17. #17  
    After the merger with cingular and att, There is no way the gov will let sprint and verizon merge, without divesting alot of frequency which would defeat the purpose. ANything is possible,but not likely. Verizon is more into buying up alot of the left over nextwave frequency.

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