01
May
Sprint

Sprint's money troubles are no secret to anyone. After losing out on the Lightsquared deal, not to mention the decreased revenue from the iPhone deal (which should pay off in the long run), Sprint has had trouble making ends meet in the short term. Thanks to a new deal signed with the Western States Contract Alliance (WSCA), Sprint will receive $2bn in revenue over the next four years in exchange for its wireless services. Big customer.

It's not enough to offset the absolute thrashing that Sprint's finances have taken recently. When the carrier is taking losses a billion dollars in one quarter, two billion over 16 of them seems like a drop in the bucket. With a new LTE network on the horizon, and a better device portfolio than ever before (we're looking at you, EVO 4G LTE), there are some reasons to be optimistic about Sprint.

As long as there are no more major equipment malfunctions, and the company can stick to that whole "unlimited data" promise.

Source: Sprint Newsroom

Eric Ravenscraft
Eric is a snarky technophile with a taste for the unusual. When he's not obsessing about Android, you can usually find him obsessing about movies, psychology, or the perfect energy drink. Eric weaves his own special blend of snark, satire, and comedy into all his articles.

  • http://meatcastle.com/ Youre My Boy Bloo

    Wow, that WiMaxx thing really came back to bite them in the ass. I would say that perhaps they need to focus on suring up their 3G network and speeds as I have always had reliability issues, but I guess that is not exactly a great way for them to not spend so much money.

    In all honesty their prospects in the consumer market look pretty bleak. I just hope they get rid of unlimited data soon so I can jump ship.

    Wow, I am really pessimistic.

    • Mr. Mark

      they are suring up their 3g network; it's called Network Vision.  lots of places have already seen an improvement in data speeds and reliability.  check out 
      https://network.sprint.com/

      • http://meatcastle.com/ Youre My Boy Bloo

        That is very disappointing to know that 3 data speed upgrades in the last 6 months has only gotten me to 53kbs down/10kbps up. These numbers are especially embarrassing noting there are 3 towers less than 1/4 mile from me right now.

        • http://www.facebook.com/Kenley.N Kenley Noltensmeier

          Before Network vision was even in the works I had extremely good coverage where I live. I get 3MB Down and 1MB Up speeds and that using 3G. I have proof and pictures here: 
          http://forum.xda-developers.com/showthread.php?t=1503453

          • http://meatcastle.com/ Youre My Boy Bloo

            Sadly, that is not my experience in San Diego. I used to live up in LA where there was allegedly 4G, although I'll be damned if I ever saw any, but my when I moved down to San Diego it was a completely different level of disappointment.

            If I am anywhere outside of the 5 mile square area of downtown San Diego I can kiss data goodbye.

        • yankeesusa

          Wether you have 3 towers or one the data speeds is dependent on the capacity of the towers at the time. Plus their 3g upgrades still aren't complete. There is always something to complain about but complaining about 3g isn't going to help. Sprint will either keep improving and have a great network by end of year or they will bomb. Either way I would wait till end of year before complaining anymore. They have already said their data sucks and are working on improving it.

    • yankeesusa

      they are sprucing up their 3g network. They have improved 3g across the board in lots of cities and soon all their network will get an upgrade. If you look at the news lately it shows how their network vision is still on target. Just jump ship already if you don't like them. But if I were you id give them till end of year as this will show if they really are going to pull it off.

  • http://twitter.com/Waazzupppp Ron Lunsford

    Doesn't this just make Sprint more attractive for say, Deutch Telekom or even Vodafone to purchase? By posting major losses the last few quarters, but things looking better, a buyout seems much more likely than it did when they were bleeding subs and money.

  • Xeneize480

    ;( they suck! lol Vzw #1

  • TonyArcher

    Lighsquared deal has no impact on their financials.  It would have been all upside.  Iphone deal, also upside.  Completely rebuilding the entire network?  Expensive and risky, but it had to be done  and it should be much better once finished.  They need LTE, They need to integrate 800.  And Clearwire going Wimax is alright if they make it through, because they got the spectrum that they wouldn't have had if they waited for LTE.

    • http://www.androidpolice.com/author/eric-ravenscraft/ Eric Ravenscraft

      Lightsquared absolutely had an impact on their financials. Even disregarding the $65m they had to pay out because the deal fell through, the Lightsquared deal was a $15bn dollar deal. Just because they don't have less money when they started doesn't mean that's not a loss for the company. Missed opportunities are lost money. This is how businesses operate. Plans that Sprint was making when they thought they were going to get $15bn in cash and assets now have to be scrapped.

      Sprint is piling on the debt and no matter how good the plans are for how things will improve, the longer that debt hovers over them, the harder it will be to continue to operate their business. If a company is solvent, then it's ok to write off a failed deal as "whatever, no big loss." But when you're bleeding a billion dollars in one quarter, you don't get to say "Oh well, we didn't lose anything." You lost the ability to get closer to profitability.

      It's like having no job and losing a free lance gig. Sure, you're no better off than you were when you started, but the place you started at is the rent is due and you have no money in your bank account. Sprint needed every single one of those deals. So this is good news.

  • spydie

    Oh, that's great, rent space on your towers to another carrier, when your towers are already overloaded and speeds are down to nothing at times, assuming you can even find a state where Sprint still works (NM isn't one of them with towers "down" all over the state constantly).

  • fixxmyhead

    they need it there bleeding money every quarter. why do people pay this carrier with there failed wiimax not to mention non existing 4g for alot of there customers and dial up 3g speeds

    • yankeesusa

      Because the 3g problem is not 100% of the time and because they are the best in pricing. Plus they are constantly improving their network, something that att has stopped doing and only verizon is currently doing other than tmobile. I'll continue paying them money as long as my phone call quality stays the way it is. Haven't had one dropped call for months now. Although 3g is a big deal now the money i save is worth it. So far sprint's network vision is paying off and it looks like their lte plans are still on the mark.

      • fixxmyhead

        switch to tmobile. faster speeds and cheaper too also wifi calling in case u dont get good coverage

        • Ph174699

          That is an incorrect statement. Do an apples-to-apples plan comparison and Sprint is the least expensive.

  • Freak4Dell

    And now to sit back, wait, and see how they screw this one up, too. To be fair, it's usually not Sprint's fault that their partnerships always end up going down the drain, but they simply suck at picking companies to partner with. Sprint is basically the whore of the cell industry...they'll go wherever the money is without even thinking about whether they'll get an STD.

  • Paris

    Sprint's been losing money because of Network Vision - they're spending a lot. It's like the "Nintendo is losing money" posts recently. They had a huge R&D year, they're going to lose money.

    Meanwhile, AT&T has done nothing in my neck of the woods in four years.

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