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4G/3G/WiFi

Sprint Needs $3B to Fufill Its 'Network Vision'

Sprint Corp. (NYSE: S) needs to raise around $3 billion more in funding to complete its Long Term Evolution (LTE) and 3G network upgrades, according to a report issued by Mizuho Securities USA Inc. on Friday morning.

Mizuho met with Sprint CFO Joe Euteneuer at this week's 2012 International CES in Las Vegas. The company said they were pleased with the performance of the iPhone in the last quarter of 2011, while they are focused on executing the major upgrade of Network Vision over the next couple of years.

Network Vision involves using base station technology that supports both 3G CDMA and Long Term Evolution (LTE) across multiple frequencies. Sprint unveiled its first three LTE devices in Vegas this week

The Mizuho report suggests that Sprint needs billions in additional funding to complete the upgrade:

    Sprint successfully raised $4B in November, 2011 by refinancing some of its debt. Management indicated the company requires an additional ~$3B in funding for Network Vision. At least $1B will likely come from vendor financing, with the remainder coming from debt.


Why this matters
The Network Vision program is crucial to Sprint if it is to compete with AT&T Inc. (NYSE: T) and Verizon Wireless . The upgrade is the company's initial pathway to LTE Advanced services in 2013.

For more
Read up on the network vision:



— Dan Jones, Site Editor, Light Reading Mobile

gtchavan 12/5/2012 | 5:45:40 PM
re: Sprint Needs $3B to Fufill Its 'Network Vision' In reality they need 4 billion so their network does not collapse under the weight of the iPhone.
alandal 12/5/2012 | 5:45:31 PM
re: Sprint Needs $3B to Fufill Its 'Network Vision'

Exactly, never mind of any LTE plans.


They thought they had figured out everything. With L^2 in hot water and LTE equipment vendor's inability to deploy (and potentially being paid by Sprint) in order to sell their spectrum hosting business, Sprint is ...  

joset01 12/5/2012 | 5:45:22 PM
re: Sprint Needs $3B to Fufill Its 'Network Vision'

No, if that was the case, why would Sprint move LTE onto spectrum they could use for 3G services for the iPhone? Doesn't compute.


They know they need LTE in the long-run, even if there isn't a super-compelling device or application creating demand yet. Don't want to be caught short without LTE when that day does eventually arrive...

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