AOL Money & Finance

Sprint is not beyond fixing -- but time is running out fast

More

Sprint Nextel Corporation (NYSE: S) continues to be bashed in the business media every other week it seems. The third-largest wireless company in the U.S. has shed hundreds of thousands of customers in the last 18 months as the larger competition has snagged customers with stellar sellers like Apple, Inc.'s (NASDAQ: AAPL) iPhone 3G and other high-end handsets.

Sprint announced 8,000 layoffs this week, adding to the massive employee headcount lost by major corporations in the last three months. With losses in four of the past five quarters, massive layoffs and a shrinking customer base, is Sprint in real trouble? Not really -- it still has over 50 million wireless subscribers. Should it have lobbied to win the contract with Apple for the iPhone? While we'll never know if that was even possible, that one partnership alone could have completely reversed Sprint's fortunes in the last 24 months. The carrier is hoping the Palm Pre can make up for last ground, though. It may, but that one hand of cards can't win the poker tournament.

This BusinessWeek piece explains that Sprint's cash position is good and it's not in immediate need of greenbacks to service its debt. That can't happen forever, though. Sprint is heavily advertising that its family plans -- a way to increase average consumer bills -- is way cheaper than the competition. This is true. Is it enough to grab customers back? Some will come back because of the lure of cheaper bills, but is its been shown before, must-have devices (handset price and monthly plan price be damned) are more powerful. What can Sprint do? It doesn't have anything in this field right now.

It may be too late when the Palm Pre shows up.

Reader Comments (Page 1 of 1)

Add your comments

Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.

When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.

To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.

Symbol Lookup
IndexesChangePrice
DJIA+30.6910,464.40
NASDAQ+6.872,176.05
S&P 500+4.981,110.63

Last updated: November 26, 2009: 12:13 AM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

TheFlyOnTheWall.com Headlines

    BioHealth Investor Headlines

    WalletPop Headlines

    My Portfolios

    Track your stocks here!

    Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

    BloggingStocks Partners

    More from AOL Money & Finance

    WalletPop Headlines