Sprint's current, annualized interest expense on their LT debt is about $875 million.
If their entire LT debt were paying interest at current market rates for a B-rated company, then sprint would be paying TWICE that... and they will be if that debt rolls over in the next few years.
Add in the $4 to $7 billion sprint will likely have to borrow to accomplish N.V. and the "vanilla" (not LTE-Advanced) LTE launch and the company's annual interest expense could approach $2 billion annually by early 2014.
The problem is, Hesse is making horrible mistakes. After sprint contributed $billions to build Clearwire's state-of-the-art infrastructure, Hesse has decided to abandon Clearwire and spend $billions more REPLICATING Clearwire's network...
... a network that could run LTE-Advanced at 10 times the speed that Hesse's "vanilla" LTE will run at when he launches it almost 2 years AFTER well-capitalized Verizon has done theirs.
The Sprint board needs to show that lunatic Hesse the door and they need to do it NOW.
... which is the legacy version of what MetroPCS began running 2 years ago. It multiplexes by frequency (FD-LTE) rather than the emerging, global standard adopted by Clearwire, China Mobile and others, which is the new version of LTE, called LTE-Advanced, which is optimized with the sufficient spectrum Clearwire owns via time-division multiplexing (eg: TD-LTE).
In live, test networks, Clearwire attained downlink speeds in excess of 90 megabits in Phoenix and, in conjunction with Ericsson's swedish test net, well over 100 megabits... or roughly 10 times the speeds that Verizon currently averages on 10x10 (20 mhz total) paired channels.
Not only will Sprint use the older, slower version of LTE that Verizon uses, sprint only has 10mhz of spectrum available for it until nextel bands begin to free up in 2 to 3 years so once sprint starts launching LTE, it could very well be SLOWER than the WiMax they currently run on Clearwire's non-LTE bands.
Even more to the point of Dan Hesse's stupidity regarding Clearwire, Clearwire has sufficient spectrum to run DUAL, 40 mhz channels with LTE-Advanced (eg: 2, 20x20 channels) which essentially eliminates any chance of overload on the network and assures unlimited data plans for subscribers almost indefinately.
Sprint already has $billions invested in Clearwire's state-of-the-art infrastructure and only $600 million more would launch LTE-Advanced to 135 million POPs much sooner than network vision could accomodate Hesse's "vanilla" LTE service...
... but instead, Hesse's going to spend ANOTHER $3 billion to replicate Clearwire's infrastructure with a vastly inferior LTE solution.
They need to replace this Hesse Character and they need to do it soon while Sprint still has some viability left.