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.
Virgin Mobile USA Relaunches As An iPhone-Only Carrier
Virgin Mobile USA, which is owned and operated by Sprint, transformed itself today into new provider much more closely aligned with the Virgin brand. Significantly, Virgin Mobile USA is now an iPhone-only carrier, meaning Apple's iPhones are the only phones Virgin will sell moving forward.
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 Raising More Capital for Network Expansion
Sprint is looking to raise more cash for covering a variety of expenses. To that end, the company today kicked off a sale of $1 billion in senior notes.
Verizon to Sell Landline Biz to Frontier for $10 Billion
Verizon Communications today confirmed plans to sell part of its wireline telephone and internet business to Frontier Communications for $10 billion. The deal covers Verizon's consumer and business assets in California, Florida, and Texas.
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.
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...