Sprinting in the Wrong Direction

May 6, 2008 in Sprint

We hate to say it, but it looks like Sprint is winning a one horse race for the finish line of annihilation. Let’s have a quick look at recent timeline of sorts:

  1. Robert H. Brust was named Sprint Nextel CFO effective immediately. He formerly served as CFO of Kodak.
  2. T-Mobile is rumored to possibly purchase Sprint.
  3. Sprint shows interest in selling off the Nextel side of the biz.
  4. QWEST Communications drops Sprint as it’s Carrier in favor of Verizon.
  5. The new CFO is welcomed with news of a Junk Bond rating by the S&P.
  6. Nonetheless, Sprint Nextel stock rises 10.5% - probably based on investors hoping they sell out to T-Mobile.

There is a decent amount at stake here… having the 3rd largest Wireless Carrier in North America be “absorbed” will make for even more of an oligopoly, less competition, etc… but what we’re wondering is what will happen to “Xohm”?

Xohm, also known as WiMax, is the standard that Sprint is developing for mobile internet connectivity. It’s faster than pretty much anything standardized in the existing market but delay after delay has brought continued disappointment for the service’s launch. Moving forward, it will be hard for the company to fund their most promising project considering the recent news that their company will either be sold or sit and rot like banana peels in a compost pile.

So why not sell off Nextel only and use the capital to focus on Sprint and Xohm/WiMax? That’s what we’d look to do. How many people are fond of Nextel anyways? Oh.. you are? Cool, for $2,000 and a new 2-year Sprint contract perhaps you could buy the entire company.

Enjoy this post? Subscribe to the RSS Feed!

Related Articles:

Comments:

(0) comments | Add your comments