Friday, August 7, 2015

Sprint Steps Up

Sprint reported solid fiscal first quarter earnings earlier this week, and Chairman Masayoshi Son, also CEO of SoftBank, which owns a 78% stake in Sprint, expressed its confidence in the wireless carrier. On the conference call, Son reiterated that there are no plans to sell down its stake in Sprint, that there’s no need for equity or public bond financing, and that there is no pressure to sell Sprint’s existing spectrum. Amir Rozwadowski of Barclays explained, “SoftBank also emphasized its confidence in an eventual Sprint turnaround based on the goals of a ‘large’ opex [operating expense] reduction, improved capital deployment, better network quality, a sensible device financing program (leasing), and debt reduction. SoftBank believes its own turnaround story.” But what are the company’s plans to actually improve their network? On August 4 conference call, President and CEO Marcelo Claure noted, “We plan to deploy tens of thousands of small cells in the next three years to increase the coverage and capacity of the network, leveraging all spectrum bands with the potential to increase the number over time.”  Continue reading here

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