Increased competition from other carriers has induced
Sprint Nextel Corp.
) - the third-largest wireless carrier in the U.S. - to launch a
low cost ZTE Vital smartphone. The new Android handset will be
) user-friendly Android 4.1 Jelly Bean platform.
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The newly-launched 4GLTE-based ZTE Vital features a 13 MP
front-end camera and 1 MP rear-facing camera supporting a
resolution of 1280 x 720 pixels. It is provided with 8 GB
in-built memory which can be expanded up to 64 GB. Moreover, the
device is powered with industry leading
) 1.5 GHz Snapdragon S4 dual-core processor, for enhanced network
The new handset has been priced at $100 (inclusive of a $50
mail-in rebate) with a two-year service contract from Sprint. The
handset will hit the Sprint stores on Jun 14.
Sprint plans to deploy its 4GLTE by the end of 2013, encompassing
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 in wholesale and
affiliate subscribers. Sprint witnessed subscriber churn of 1.84%
as compared to Verizon Wireless and
) whose subscriber churn for the first quarter was 1.30% and
Hence, we believe that the successful deployment of 4GLTE
services across its footprint coupled with a huge 4GLTE-based
smartphone portfolio will not only reduce subscriber churn but
will also boost data revenue growth for the company, going
Currently, Sprint has a Zacks Rank #3 (Hold).