Sprint Nextel Corp.
) has announced the launch of 4G LTE based
) Windows Phone 8 Smartphones - HTC 8XT and Samsung ATIV S Neo.
Customers can avail of HTC 8XT for $99.99 while ATIV S Neo is
priced at $149.99. Both devise have a two-year contract. The
company has not yet disclosed the release dates for these two
We believe the launch of these new smartphones will not only
remain accretive to the company's smartphone sales but also
generate increased market traction for Sprint's LTE platform.
Other than Sprint's lucrative deal with Japanese telecom
United States Cellular Corporation
), the company is also heavily concentrating on growing its
network platform through its restructuring program -Network
Vision. Through this plan, the company is concentrating on the
core Sprint platform, which includes CDMA, WiMAX and LTE
technologies, and the eventual termination of the Nextel platform
The company began the deployment of CDMA voice on 800 MHz in
the first quarter and is further expected to deploy LTE on 800
megahertz by the fourth quarter of the year, covering more than
250 million customers with 22,000 cell sites. So, in order to
support its future 4GLTE rollout plan, the company is
continuously launching 4GLTE handsets across its entire
In the recently concluded first quarter, Sprint lost
approximately 415,000 subscribers, representing a net loss of
191,000 in retail subscribers and 224,000 wholesale and affiliate
subscribers. Sprint witnessed subscriber churn of 1.84% while the
churn rate for Verizon Wireless and AT&T, Inc. was 1.30% and
Hence, we believe that the successful deployment of 4G LTE
services across the company's footprint coupled with a huge 4G
LTE-based smartphone portfolio will not only reduce subscriber
churn but will also boost data revenue growth, going forward.
Currently, Sprint has a Zacks Rank #3 (Hold).
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