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Sprint Corporation Message Board

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  • bjspokanimal bjspokanimal Nov 4, 2011 1:00 PM Flag

    FCC/Lightsquared Stonewall's Senator Grassley

    ... I could be convinced that the company could adopt a strategy that would avoid what appears to be a developing "financial vortex".

    The problem for sprint is similar to the problem in euro countries. Sprint's debt will balloon from under $20 billion to well over $25 billion over the next 2 years and downgrades to their credit rating means that existing debt at 6 to 7% interest will need to be rolled over at rates that could exceed 12%. That's a boat anchor that sprint's competition doesn't have and in a utility-like, narrow-margined business like this, that's a financial vortex that will be difficult for sprint to escape short of a buyout.

    That's why the Clearwire thing is so baffling. Sprint contributed $billions to build an all-digital, all-IP, nicely backhauled, 2010-vintage network at Clearwire that serves 133 million POPs with 23% of the spectrum that's licensed for wireless internet/telephony in the U.S...

    ... the idea that Dangerous Dan would gamble with that instead of exploiting that is absolutely baffling... the guy's decisions on that have been pure lunacy and it appears to be taking all the resources that sprint's board can muster just to drag Dangerous Dan back to a constructive approach.

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