Stepping out from its domestic domain,
Sprint Nextel Corp.
) is seeking opportunities in the European continent. The company
has extended its Session Initiative Protocol (SIP) Trunking
services to 12 countries in Europe including key markets like UK,
Germany, France, Italy and the Netherlands.
The SIP service is aimed at providing affordable services of
voice over IP (VoIP) coupled with its Global MPLS network. We
believe the company's strategy to build its presence beyond its
home ground will serve as a long-term growth catalyst.
We also foresee Sprint pursuing growth goals and expanding
into new markets with the influx of capital from the impending
Softbank deal. Recently, the deal with SoftBank received
Sprint shareholders' approval and expected to close by Jul 2013.
Sprint's core platform business also depends upon the success of
its multi-billion dollar restructuring program known as 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
In this regard, the company recently completed the closure of
the Nextel platform, which is expected to be replaced by LTE on
800 megahertz by the fourth quarter of this year.
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This network restructuring will enable the company to remove
higher expenses of running two separate networks. Further, Sprint
also targets a strong recapturing rate of Nextel customers. This
includes 1 million post-paid subscribers, the majority of whom
are enterprise customers. In addition, the company has also
struck deals with
United States Cellular Corporation
) in order to secure more spectrum that would support its LTE
Sprint operates with players like
Verizon Communications Inc.
) and has a Zacks Rank #3 (Hold).