Palm and Sprint Better Hurry Up on the Release!!

**Kupe** · 02/19/2009, 06:21 PM

They better get the Pre on the streets earning revenue before Sprint falls off the face of the earth. According to this Gizmodo Link:

Originally Posted by Gismodo

It's a quarterly ritual for Sprint at this point: Another 1.3 million subscribers have fled, another $1.6 billion down the tube.

**Zorro1** · 02/19/2009, 07:00 PM

Oooooh, Actually if Sprint went out of biz, that would void the contract, and Verizon would be in play!

**Gerorne** · 02/19/2009, 07:22 PM

That's not quite the full story. That loss is better than they expected and stock is up 19%.

UPDATE 5-Sprint loss narrows though customers go, shares up | Industries | Technology, Media & Telecommunications | Reuters

**Reeves** · 02/19/2009, 07:53 PM

Also, Sprint can meet minimal debt obligations through the end of next year, and with 49 million subscribers, they could not go anywhere near out of business until a good time after the second generation of WebOS/Pre devices start hitting.

Between the increased ARPU and (hopefully) good buzz of having a true flagship handset...they should be in a lot better shape by then.

**Captweez** · 02/19/2009, 09:17 PM

Originally Posted by mikah912

Also, Sprint can meet minimal debt obligations through the end of next year, and with 49 million subscribers, they could not go anywhere near out of business until a good time after the second generation of WebOS/Pre devices start hitting.

Just out of curiosity, how did you figure this out?

**Pearl_Diva** · 02/19/2009, 09:27 PM

I think they need to release it to gain customers back.

**Merovingian** · 02/19/2009, 10:07 PM

Originally Posted by Kupe

They better get the Pre on the streets earning revenue before Sprint falls off the face of the earth. According to this Gizmodo Link:

Dude, they still have 49 million customers paying monthly bills. Let's be dumb and assume each pays $10/month, that's $4.9 billion they collect monthly..
They're not going anywhere.

**Se7enth** · 02/19/2009, 10:20 PM

Originally Posted by Merovingian

Dude, they still have 49 million customers paying monthly bills. Let's be dumb and assume each pays $10/month, that's $4.9 billion they collect monthly..
They're not going anywhere.

Um...Wouldn't that be $490 million?

**Bigchris** · 02/19/2009, 10:29 PM

Originally Posted by syphon

um...wouldn't that be $490 million?

Plus or Minus a few...

**lastdetailwd** · 02/19/2009, 10:33 PM

Originally Posted by Syphon

Um...Wouldn't that be $490 million?

haha, it's ok...i didn't catch that. i suck at math.

**Merovingian** · 02/19/2009, 10:47 PM

Originally Posted by Syphon

Um...Wouldn't that be $490 million?

Guess you didn't catch the part where i say "let's be dumb"... hehe

**Reeves** · 02/20/2009, 05:47 AM

Originally Posted by Captweez

Just out of curiosity, how did you figure this out?

I read the original article:

"Hesse said the company remains focused on cutting costs and boosting cash flow. Hesse in a statement also added that Sprint has enough cash to meet its debt service requirements through the end of 2010."

By then, they should have launched second-Gen Pre devices, have a healthier ARPU total, and also be rocking new CDMA Blackberries and at least one Android device. Sprint should be fine.

**B-model#CB** · 02/20/2009, 10:07 AM

Originally Posted by Zorro1

Oooooh, Actually if Sprint went out of biz, that would void the contract, and Verizon would be in play!

intersting though but naaaaa.... the would go chapter 11 and still be a functioning company for sometime. Palm would still be stuck in the contract.

**Aero** · 02/20/2009, 10:50 AM

Sprint is going to be entering a severe cash flow problem.

they lost a higher portion of contract customer than pre-paid customers meaning they hav an even worse ratio than before.

Of course Hess is sayng they can (barely), meet their debt an not default based on current numbers if they keep cutting costs, but what he didn't say what will happen if trends continue and they lose 5 million more this year.

They keep disproportionally losing business customers and their ARPU has been dropping according to all recent reporting

**Aero** · 02/20/2009, 10:51 AM

Originally Posted by B-model

intersting though but naaaaa.... the would go chapter 11 and still be a functioning company for sometime. Palm would still be stuck in the contract.

Sprint most likely prospect is being bought out. But not by verizon but by a larger international carrier.

**B-model#CB** · 02/20/2009, 10:54 AM

Originally Posted by aero

Sprint most likely prospect is being bought out. But not by verizon but by a larger international carrier.

Really - I had not read that. I'm not sure why an international company would want Sprint. The CDMA technology would not play well w/ most foriegn Companies. Verizon would be a better fit, but they don't seem to need Sprint.

will hit the web today and see what merger / buyout rumors are swirling

**Reeves** · 02/20/2009, 11:07 AM

Originally Posted by aero

Sprint is going to be entering a severe cash flow problem.

they lost a higher portion of contract customer than pre-paid customers meaning they hav an even worse ratio than before.

Of course Hess is sayng they can (barely), meet their debt an not default based on current numbers if they keep cutting costs, but what he didn't say what will happen if trends continue and they lose 5 million more this year.

They keep disproportionally losing business customers and their ARPU has been dropping according to all recent reporting

And yet, all of this is actually less worse than expected, and if their next several launches go well, will continue to be until the company is smaller and much more solvent. Sprint maintaining their size of a year ago wasn't ever feasible.

Everything else is just speculation.

**Aero** · 02/20/2009, 11:13 AM

Originally Posted by B-model

Really - I had not read that. I'm not sure why an international company would want Sprint. The CDMA technology would not play well w/ most foriegn Companies. Verizon would be a better fit, but they don't seem to need Sprint.
will hit the web today and see what merger / buyout rumors are swirling

was referring to as opposed to bankruptcy the person I was responding to had mentioned.

Certainly in mid 08 and early fall a prospective buyout was discussed in the financial press.

CDMA s not really a n isue you have cross buying with a lot of divergent technology holders.

**Rhody** · 02/20/2009, 11:29 AM

Originally Posted by B-model

Really - I had not read that. I'm not sure why an international company would want Sprint. The CDMA technology would not play well w/ most foriegn Companies. Verizon would be a better fit, but they don't seem to need Sprint.

will hit the web today and see what merger / buyout rumors are swirling

SK Telecom was thinking of buying Sprint back in July. I think they use CDMA in South Korea.

**lugose** · 02/20/2009, 11:33 AM

Originally Posted by B-model

Really - I had not read that. I'm not sure why an international company would want Sprint. The CDMA technology would not play well w/ most foriegn Companies. Verizon would be a better fit, but they don't seem to need Sprint.

will hit the web today and see what merger / buyout rumors are swirling

Isn't verizon (a cdma carrier) owned by a foreign company in Vodafone that has GSM.

Thread Tools

Display

Posting Permissions