Sprint could add new business as a result of AT&T / T-Mobile deal, analyst believes

[Mic_Tech]

Sprint could add new business as a result of AT&T / T-Mobile deal, analyst believes

[BergerKing]

Text of story:

Sprint is openly opposed to AT&T’s proposed $39 billion acquisition of T-Mobile, but the scrappy carrier stands to benefit from the deal according to Piper Jaffray analyst Christopher Larsen. Larsen on Friday lifted his rating on Sprint stock from neutral to overweight, while also upping his price target from $5 to $6.50. The analyst sees brighter days ahead for the carrier through the rest of 2011 and 2012 as well, and he also believes the AT&T / T-Mobile deal could be a good thing for Sprint. Larsen thinks the merger could cause some subscribers to leave the new mega-carrier and flee to Sprint. Beyond that, AT&T may be required to divest some markets in order for the deal to be approved, and Sprint may very well pick up that business or even some of AT&T’s spectrum if it is forced to let some go. Finally, the analyst also believes a post-merger market would be less prone to aggressive price cutting, which would certainly help Sprint maintain a competitive advantage.

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Sprint: Piper Turns Bullish
May. 20 2011 - 9:33 am | 765 views | 0 recommendations | 0 comments
Sprint shares are trading modestly higher this morning after Piper Jaffray analyst Christopher Larsen this morning lifted his rating on the telco’s stock to Overweight from Neutral, with a new price target of $6.50, up from $5.

Larsen says the upgrade reflects “improving operational trends” that he thinks can be sustained through 2012. In particular, he sees improving revenue per customer, plus “an improved strategic outlook for next generation network build and corporate structure.”

The analyst thinks the pending AT&T/T-Mobile merger will “shake some gross add share loose” for Sprint; he also thinks conditions placed on the deal could allow the company to pick up some additional markets or spectrum. A consolidated wireless industry is also less likely to see aggressive price cutting, he adds.

Another potential positive, Larsen adds, would be adding the Apple iPhone to the company’s lineup, a possibility he thinks could occur in the fall.

Longer term, he thinks Sprint will develop its own LTE network and decided against buying the rest of Clearwire.

Sprint this morning is up 8 cents, or 1.4%, to $5.41.



Posted from my CrackBerry at wapforums.crackberry.com

[lnichols]

Well I'm considering leaving Sprint. I'm tired of CDMA, think that WiMax and Sprint/Clearwire's rollout of it is a joke, and I do some international travel and I'm tired of pathetically small world phone selection. I wish they would switch over to HSPA+ now and then over to LTE when its more widespread.

[flyawaymike]

Originally Posted by lnichols

Well I'm considering leaving Sprint. I'm tired of CDMA, think that WiMax and Sprint/Clearwire's rollout of it is a joke, and I do some international travel and I'm tired of pathetically small world phone selection. I wish they would switch over to HSPA+ now and then over to LTE when its more widespread.

They've already rolled out the hardware to support LTE and more, and continue to still do so.

They're rolling out a network that is software centric, rather than hardware centric; it will be able to run CDMA, LTE, WiMAX and GSM or all combined at the same time. It's not a matter of changing hardware all over it, it's just a matter of flicking a switch, basically. It's called Sprint Network Vision.

[lnichols]

Originally Posted by flyawaymike

They've already rolled out the hardware to support LTE and more, and continue to still do so.

They're rolling out a network that is software centric, rather than hardware centric; it will be able to run CDMA, LTE, WiMAX and GSM or all combined at the same time. It's not a matter of changing hardware all over it, it's just a matter of flicking a switch, basically. It's called Sprint Network Vision.

They just signed the contacts and started the rollout in December for that. It was a multi-year implementation. So what is the plan? Sprint's only plan right now is CDMA and wimax but no WiMax Blackberry. Sorry but no announced plan on the way forward, no updating my contract for another two years of the SOS!

[flyawaymike]

Originally Posted by lnichols

They just signed the contacts and started the rollout in December for that. It was a multi-year implementation. So what is the plan? Sprint's only plan right now is CDMA and wimax but no WiMax Blackberry. Sorry but no announced plan on the way forward, no updating my contract for another two years of the SOS!

I'm sorry, has there been an LTE or WiMAX Blackberry with another carrier I missed?

[lnichols]

Originally Posted by flyawaymike

I'm sorry, has there been an LTE or WiMAX Blackberry with another carrier I missed?

No there hasn't been any WiMax or LTE Blackberry devices announced, but HSPA+ phones are out and more coming out and HSPA+ is light years ahead of CDMA EV-DO. Point is that Sprint's network, which I've been using since 2001 when it was one of the more advanced, is now a dinosaur. Verizon's CDMA network is the same. The technology was great compared to 2G GSM, but as soon as 3G GSM switched over to CDMA and added simultaneous voice/data, higher data rates, and a migration path to HSPA+ then CDMA EV-DO was passed up. I would love to see Sprint switch from CDMA to HSPA+, and add LTE using the Nextel Spectrum and Clear spectrum when the technology matures. **** if they had just implemented EV-DO Rev B which would have given simultaneous data and voice then it would have been a major improvement. But all we here from them is Clear/Wimax is the future, with grumblings about LTE, maybe.

[flyawaymike]

Originally Posted by lnichols

No there hasn't been any WiMax or LTE Blackberry devices announced, but HSPA+ phones are out and more coming out and HSPA+ is light years ahead of CDMA EV-DO. Point is that Sprint's network, which I've been using since 2001 when it was one of the more advanced, is now a dinosaur. Verizon's CDMA network is the same. The technology was great compared to 2G GSM, but as soon as 3G GSM switched over to CDMA and added simultaneous voice/data, higher data rates, and a migration path to HSPA+ then CDMA EV-DO was passed up. I would love to see Sprint switch from CDMA to HSPA+, and add LTE using the Nextel Spectrum and Clear spectrum when the technology matures. **** if they had just implemented EV-DO Rev B which would have given simultaneous data and voice then it would have been a major improvement. But all we here from them is Clear/Wimax is the future, with grumblings about LTE, maybe.

Well they have the spectrum to do it, they own more than AT&T and Verizon combined.