Sprint Seeking $7B to Cover iPhone, Network Upgrade Costs
Sprint revealed as part of its quarterly earnings report this week that it expects to hit a cashflow problem over the new few years as its spends billions to upgrade its CDMA 3G network, launch Long Term Evolution 4G, and pay Apple for the iPhone. Sprint's planned network upgrades will cost about $7 billion, and it has agreed to pay Apple $15.5 billion over the next few years to sell the iPhone. Sprint said it is expecting a shortfall of as much as $7 billion. As a result, it is seeking ways to finance its operations over the coming years. Sprint hopes to refinance $4 billion debt and raise an additional $3 billion in cash from vendors to cover costs and keep its cash-on-hand balance at $2 billion.
Sprint to Sell Certain Network Assets for $2.2 Billion
Sprint has agreed to sell select network assets to a company called Network LeaseCo and then lease back those assets for an unspecified sum. The move is meant to boost Sprint's cash position and will eventually add $2.2 billion to the company's coffers.
Sprint to Cut Headcount and $2.5 Billion in Costs
Sprint is prepared to reduce expenses by as much as $2.5 billion over the next year, reports the Wall Street Journal, and is likely to cut jobs to help it reach that goal. An internal memo sent to staff by CFO Tarek Robbiati obtained by the Journal said the cuts "inevitably will result in job reductions." Sprint had about 31,000 employees as of March.
Sprint to Relocate Cell Sites In Bid to Cut Costs
Sprint hopes moving its radio infrastructure away from privately held companies to government-owned land and/or structures will help shave $1 billion in costs, reports Re/code. Sprint leases cell tower access from Crown Castle and American Tower, and lease rates are a significant part of it operational costs.
Sprint Separates Device Leasing Business to Manage Cash
Sprint today sold part of its device financing business to a newly formed entity called Mobile Leasing Solutions for $1.2 billion. The new company is being backed by a group of equity investors, including Sprint's parent company, SoftBank.
SoftBank, Sprint Majority Owner, to Split In Two
SoftBank today revealed a plan to separate itself into two separate companies, one for its Japan-based carrier business and another for its international operations, including Sprint. SoftBank's domestic business unit, which includes investments in Yahoo Japan, will be run by Ken Miyauchi.
The is Why
There's no doubt at all that a company with less debt could very easily turn a profit at those rates.
Welcome aboard the Titanic.
Enjoy your stay on the D Deck...
lmao man Sprint really is the laughing stock of the wireless industry aren't they. The sad thing is though they do seem to come up with good and innovative ...
"To meet their target,
Can they turn this around, probably. But, it w...