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Sprint to Stop Sending LightSquared Money for Now

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30 Days.

Slammer

Jan 5, 2012, 7:24 PM
----" Sprint has given LightSquared until the end of January to score FCC approval before it backs out of the network-leasing deal the companies struck in 2011."----

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.

John B.
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Jayshmay

Jan 5, 2012, 8:19 PM
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?!!?
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Slammer

Jan 5, 2012, 8:32 PM
To build out a network on one's own, takes a considerable amount of dollars, time and red tape. We must remember that VZW did not build out their network on their own. They have been able to obtain coverage dominance through merges and acquistions.

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.

John B.
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Rich Brome

Jan 5, 2012, 10:31 PM
Spectrum is a huge part of it.

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.
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crood

Jan 6, 2012, 10:12 AM
Their expenses might be higher. As a smaller company, they probably don't have the same power when negotiating prices. In fact, TMobile might be in a better negotiating position if they leverage their parent company's clout.
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AtTheMet

Jan 6, 2012, 11:43 AM
And don't forget that Sprint is playing catch up on maintenance an overhaul of their network (CDMA).
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rawvega

Jan 6, 2012, 11:47 AM
Jayshmay said:
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.
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