Light Reading

What Now for Sprint?

Dan Jones

The departure of Gary Forsee as Sprint Corp. (NYSE: S) CEO on Monday opens up questions about the future of WiMax and, indeed, the future of the operator itself in the U.S.

Some analysts are already suggesting that Sprint could work a deal with Clearwire LLC (Nasdaq: CLWR) and then spin off the WiMax operations.

"We believe WiMax cannot be cancelled but a portion of the business should be IPO’d once a deal with Clearwire has been finalized," write analysts at UBS Research this morning.

I've already laid out why I consider WiMax one of the few competitive adavantages for Sprint over its larger rivals, AT&T Inc. (NYSE: T) and Verizon Wireless . (See Sprint & WiMax.)

It goes without saying that the Sprint news is probably not a helpful booster for the WiMax market in the U.S.

The larger question, however, is: Where does Sprint go from here if it spins or sells off assets that could potentially be profitable in the future?

I suspect if Sprint simply shakes down to the core then it will once again become a potential buy-out target -- at least in the short-term. 3G cellular, however, will not remain the dominant means of wireless communication 10 or 15 years down the road. So we have to ask: What comes next?

— Dan Jones, Site Editor, Unstrung

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Jim Chesky
Jim Chesky,
User Rank: Light Beer
12/5/2012 | 3:01:04 PM
re: What Now for Sprint?
Hopefully Sprint will NOT take the quick-cash way out and dump Wi-MAX. There are plenty of things Sprint can do to bring in better sales, profits, and stop the loss of customers.
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