Reuters is reporting that British Telecom, the largest telecommunications company in Britain, is rumored to be interested in purchasing American cellular provider, Sprint. Sprint is the 3rd largest wireless carrier in the United States, and is certainly slipping. However, these “hushed” talks have brought Sprint a 3.5 percent stock increase this Friday alone. Each Sprint stock is now worth $18.65.
Sprint is definitely behind the times, in my opinion. Since its acquisition of Nextel a few years back, the company hasn’t procured any “cool” phones. Hip phones are a must for teenagers, the biggest users of cell phones in the USA by far. While AT&T has the iPhone, Verizon the LG Chocolate, and T-Mobile the Sidekick, you will be hard pressed to find a must-have phone that is available exclusively on the Sprint network. On the flip side, Sprint (utilizing a CDMA, rather than GSM network) has arguably the fastest data speeds of any American carrier. Again, this amounts to nothing if users don’t flock to the provider.
In any case, while selling out to a foreign corp. may solve short term problems, it won’t really help Sprint innovate and succeed.
Read [Reuters]
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