Sprint Offers New Device - Analyst Blog
March 19 2013 - 1:50PM
Zacks
Sprint Nextel Corp. (S), one of the leading
wireless providers in the U.S., has added a new device – Sonim XP
STRIKE IS – to its Direct Connect product portfolio. The phone,
manufactured by Sonim Technologies, comes with an inbuilt
push-to-talk technology, especially designed to provide wireless
communications in hazardous surroundings like gaseous or explosive
atmospheres.
Sonim XP STRIKE IS incorporates durability and ruggedness with
military specifications, backed by a three-year warranty. The phone
can be availed through Sprint Stores, Business Sales or Telesales
for $599.99 excluding taxes, with a new connection or an upgrade.
The device has a two-year contract.
Beside Sonim XP STRIKE IS, Sprint also launched Sonim XP STRIKE
last year, supported by Sprint’s domestic push-to-talk calls and
international coverage to Latin American countries. In 2012, Sprint
added more coverage to its Sprint Direct Connect push-to-talk
service, which was thrice the push-to-talk coverage under the
Nextel platform.
We believe that the company’s move on expanding its push-to-talk
platform along with devices remains part of its Network Vision
strategy to expand the core Sprint platform. The company is already
increasing penetration of smartphones, iPhones in particular, and
data plans to accelerate post-paid wireless subscriber growth.
Further, incorporating push-to-talk devices to the Sprint Direct
Connect portfolio are expected to generate additional synergies by
increasing contractual services.
As part of the Network Vision strategy, the company launched LTE
services initially in five major markets in Jul 2012. In 2013, the
company expects to have LTE coverage for approximately 200 million
customers, 170 additional markets, depending upon backhaul
availability.
Sprint has already completed the 29,000 sites and leased 27,000
sites at the end of 2012. The Network Vision strategy is expected
to result in the efficient use of capital, reduction of cell sites,
the elimination of dual networks, backhaul efficiencies, reduced
churn, lower roaming charges and energy cost savings. Hence,
through this program the company is expected to generate $10
billion to $11 billion in savings over the next seven years
(2011-2017).
Nevertheless, increased competition from top carriers like
AT&T, Inc. (T), and Verizon
Communications Inc. (VZ), heavy investments, lofty iPhone
subsidies and continued wireline margin erosion keep us on the
sidelines. In addition, we also remain cautious over the Sprint,
SoftBank and Clearwire Corporation (CLWR) deal,
which might face opposition from rival companies given its
significance over spectrum transactions.
Sprint has a Zacks Rank #3 (Hold).
CLEARWIRE CORP (CLWR): Free Stock Analysis Report
SPRINT NEXTEL (S): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
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