) announced its collaboration with NetAmerica Alliance, LLC to
form a shared network alliance to offer 4G LTE mobile broadband
to members of the latter involved in rural communications
service. We believe the partnership will allow Sprint to reach
new markets and penetrate into underserved rural areas, implying
a significant financial opportunity.
The project know as SMART (Small Market Alliance for Rural
Transformation), will provide NetAmerica member carriers with
access to 800 MHz and 1900 MHz spectrum of Sprint and access to
the Sprint device ecosystem. The deployment of SMART solution
will begin in late 2014. Sprint believes that the new partnership
will not only help rural markets but will also provide a
competitive advantage. Management also stated that the new
agreement serves it the purpose of a faster, nationwide network
and cost effective services.
We believe the agreement with NetAmerica is also part of
Sprint's multi-billion dollar restructuring program known as
Network Vision. Sprint expects the Network Vision deployment to
be over by mid 2014. Through this plan, the company is
concentrating on the core Sprint platform, which includes CDMA,
WiMAX and LTE technologies. As part of the Network Vision
strategy, Sprint launched 4G LTE in 340 markets, covering more
than 200 million, and expects to cover approximately 250 million
LTE POPs by the second half of 2014. In terms of 3G
infrastructure, the company expects to see a 25% increase in 3G
data speeds with new equipment and enhanced backhaul.
Sprint currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in this sector include
Shenandoah Telecommunications Co.
Nippon Telegraph and Telephone Corporation
Level 3 Communications, Inc.
). While Shenandoah and Nippon boast a Zacks Rank #1 (Strong
Buy), Level 3 Communications carries a Zacks Rank #2 (Buy).
LEVEL 3 COMM (LVLT): Free Stock Analysis
NIPPON TELE-ADR (NTT): Free Stock Analysis
SPRINT CORP (S): Free Stock Analysis Report
SHENANDOAH TELE (SHEN): Free Stock Analysis
To read this article on Zacks.com click here.