Sprint SIP Service in Europe - Analyst Blog


Stepping out from its domestic domain, Sprint Nextel Corp. ( S ) 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 (iDEN business). 

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.

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 ( USM ) and Clearwire Corporation ( CLWR ) in order to secure more spectrum that would support its LTE deployments.

Sprint operates with players like Verizon Communications Inc. ( VZ ) and has a Zacks Rank #3 (Hold).

CLEARWIRE CORP (CLWR): Free Stock Analysis Report

SPRINT NEXTEL (S): Free Stock Analysis Report

US CELLULAR (USM): Free Stock Analysis Report

VERIZON COMM (VZ): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: CLWR , S , USM , VZ



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