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Sprint Seeking $7B to Cover iPhone, Network Upgrade Costs

Oct 27, 2011, 8:48 AM by Eric M. Zeman

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.

Reuters »

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acdc1a

Oct 27, 2011, 8:56 AM

The is Why

For all of those who say $70 per subscriber isn't enough to keep a carrier going, you're half right. This excessive debt load is why it's difficult for Sprint to turn a profit.

There's no doubt at all that a company with less debt could very easily turn a profit at those rates.

KOL4420

You are entirely correct. Sprint is the only carrier that includes unlimited mobile calls, unlimited text messaging, and unlimited included data services for a add line for a fee of only $19.99 and a subscriber rate of .40 cents for government fee's. ...
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Admiral_Ackbar

Oct 27, 2011, 9:26 AM

Welcome aboard the Titanic.

Enjoy your stay on the D Deck... 😳

experiment626

Dan Hesse "I'm King of the World!......Oh Crap!" 😁

BigRed75

Admiral_Ackbar said:
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 ...
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gloopey1

...they tried to call for help, but at&t dropped their call and Verizon was too far off in the horizon to hear them now.

...

glinc

Oct 27, 2011, 9:27 AM

Bail out!!!!

Have the government bail them out!! 😁

experiment626

Remember when THIS was the company that was going to buyout T-Mobile? 🙄

...

Jellz

That the corporations should bail out the government at this point.

...

Jellz

Oct 27, 2011, 9:14 AM

"To meet their target,

they'd effectively have to turn their entire company into an Apple shop," said Bernstein analyst Craig Moffett.

😁

Vmac39

This is what happens, when you try to keep up with the Jones'. They will be in debt for a very long time, with little profit in return. I smell Metro PCS and Verizon bidding for part or all of Sprint.

Can they turn this around, probably. But, it w...
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