The Wall Street Journal reported on Monday that Bernstein analyst Craig Moffett calls a bankruptcy filing "a very legitimate risk" in a research note downgrading the carrier to "underperform."
The analyst says that at present it is impossible to predict whether Sprint can successfully negotiate its 4G Long Term Evolution (LTE) upgrades and pull together successful new next-generation devices and services -- or get trapped under a debt mountain in the process.
Why this matters Sprint has little choice but to spend on network upgrades and the iPhone in order to try to compete with its larger rivals, AT&T Inc. (NYSE: T) and Verizon Wireless . The big spend is a necessary evil for the carrier.
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