Sprint to Stop Sending LightSquared Money for Now
This essentially is an eviction notice by Sprint. Sprint knows that there is no way LightSquared will get approval from the FCC. Sprint's focus will be better used on Clearwire. Sprint's 5Mhz x 5Mhz will be completely "under-nourished" within a quick time span compared to AT&T Mobility and Verizon Wireless by the end of this year. Clearwire's 2.5Ghz spectrum holdings will become Sprint's greatest asset in adding a substantial amount of capacity to their network. This will catapult Sprint to a very potent network position.
With tower and network saturation nearing peak allowance by town and city ordinances, partnering and pooling assets makes it much easier and cheaper to obtain goals of coverage than adding new towers. All these things play better especially in limited fund positions like Sprint or lower tier carriers.
The expense of actually building the network is also a huge factor. Sprint doesn't have as many subscribers as the big two. Yet they're expected to be price-competitive, which means they don't have as much revenue.
Yet they're expected to build just as big - and just as expensive - a network as the bigger guys.
The math there is kind of tough on Sprint. Half the revenue but expenses almost as high? They have to do something different... getting someone to share the network costs is one way.
I don't know why Sprint always has to partner with other companies like Clear & Lightsquared, instead of just build out a nexgen wireless network themselves like every other wireless company?!!?
Um they are building out their own wireless network regardless of what happens with LightSquared.
This forum is closed.