The Revenge of the Sprint

Posted July 1, 2008 at 06:49 PM by Elisabeth Young

Section: Communications, Cellular Providers, Mobile

The buzz on Wall Street is speculating that Sprint-Nextel may be on its way for a turnaround. Executives from Verizon Wireless and AT&T are saying they see fewer Sprint subscribers are moving to their own networks.

As unsupported as this rumor stands, the speculation boosted Sprint’s stock price to a 13% growth last week and another 5.84% jump last Monday. 

Several things, at least, is happening with Sprint.  An aggressive marketing campaign starring its CEO Dan Hesse is on the way.  New products, such as Samsung’s Instinct smartphone, have been released.  The company also announced it will begin to rollout its WiMax assets.  And there have been rumors that Hesse wants to let go of the Nextel business, which has been its weaker leg.

The Wall Street Journal, however, warns investors not to expect a quick turnaround for the company.  The coming of the iPhone 3G and Verizon’s BlackBerry Thunder could only mean more problems for the struggling Sprint.

Read [CNET]