Would you mind if Sprint changed directions from WiMax to LTE? Most of us know that Sprint was among the first to dip into a 4G market and now they may become the first to change their strategy after doing so. We are going to explain the situation currently as well as some of the reasons for Sprints actions.
Let’s break it down. Currently Sprint customers carry certain 4G devices that operate on the WiMax network that is built by Clearwire, not by Sprint themselves. In other words, this isn’t their own personal 4G network like Verizon has built (LTE.) You may ask why if you do not already know the answer. It was because at the time Sprint could not really afford to build out their own network due to low funds.
Following what we like to call the Sprint and Clearwire merger, Clearwire then began to fall into a hole of debt themselves. They even said they may turn to LTE once they can afford funding to expand. While Sprint and Clearwire are still trying to find their way, Verizon and AT&T are closing ground on Sprint, pressing ahead with their own networks using a different 4G technology called Long Term Evolution, or LTE.
Now is the time for Sprint to make a huge turn around if they plan to do so. They don’t want to get left behind. Rumors suggest that Sprint executives are preparing a 4G strategy announcement sometime before midyear. A few years ago when they started working with Clearwire and WiMax they didn’t have many options available but wanted to be among the first with a 4G network. They may have rushed a little bit too quickly.
Now Sprint has nothing but time and options. “It’s really wide open,” said Jonathan Atkin of RBC Capital Markets. “A lot of investors are anxious to hear about the expansion of 4G coverage.” Sprint has made some come back in profit margins and are finally ready to look at other options. Some options include either pumping more money into Clearwire or working out some other way to expand its 4G network’s coverage map, possibly LTE.
According to sources, an unconfirmed report last week linked Sprint with a prospective independent LTE network being planned by LightSquared Inc., a potential competitor of Clearwire. What would you guess when you hear something like this? Maybe they’re discussing the possibility of LTE in the near future?
Either way they decide to move, what would you like to see? Would this bother you at all? Let us know what you think and how you think any changes may hurt or benefit the company. Leave your comments in the boxes below.
Source: KCS