Verizon Communications Inc. and Sprint Nextel Corporation Face New Challengers for Their Data Networks Profits

The Paragon Report Provides Stock Research on Verizon Communications Inc. and Sprint Nextel Corporation


NEW YORK, NY--(Marketwire -03/28/12)- Wireless service providers face a new problem for their next generation data networks. While the major providers are the known to seek as much profit as they can from their networks, smaller competitors are offering similar services for free. The Paragon Report examines the outlook for companies in the Telecom Services Industry and provides equity research on Verizon Communications Inc. (NYSE: VZ - News) and Sprint Nextel Corporation (NYSE:S - News).

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FreedomPop, funded by Skype creator Niklas Zennstrom, will sell iPhone cases that provide consumers free access to 1 gigabyte of data from Clearwire Corp.'s 4G wireless network. NetZero is also offering 200 megabytes a month for free, for up to 12 months, as long as users purchase a wireless modem. Verizon and AT&T, the top wireless carriers in U.S., combined took in $12.2 billion in data sales alone in the last quarter, according to a recent article on Bloomberg.

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Verizon Communications Inc. plans to tell a congressional panel vetting its proposed $3.6 billion purchase of airwaves from cable companies led by Comcast Corp. that the deal would solve a critical need without reducing competition as reported in a recent Bloomberg article.

Sprint Nextel Corporation boosted Chief Executive Dan Hesse's total 2011 compensation by 31% to $11.9 million, due largely to an increase in his stock awards and a cash bonus that ignored the expense of carrying the Apple Inc. iPhone.

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