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Sprint to Introduce HD Voice

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Sprint Corporation (S) is reportedly planning to launch its HD Voice service by July this year. Sprint customers can enjoy this experience by using HD Voice enabled devices, which are available across Sprint networks such as iPhone 5s/5c, Galaxy S4 and Note 3, Nexus 5 and HTC One and One Max. We believe the latest technology upgrades in the voice call service will be a value addition for customers and therefore provide significant market traction.

Apart from deploying new product and services, Sprint is also focused on infrastructural development.  The company completed 5,000 Clearwire’s LTE sites in 2013 and expects to convert another 2,000 sites in the first half of the year. By mid 2014, the company expects to begin deploying 2.5 GHz network on selected sites covering around 100 million 2.5 GHz LTE POPs by the end of 2014.

The company also acquired Handmark Inc., a Kansas City-based developer and distributor of mobile applications along with its subsidiary OneLouder Apps Inc. to aid Sprint’s Pinsight Media, which offers advertising services targeted at the enterprise segment. The acquired companies are also likely to enhance Sprint’s capabilities in branding and app development.

Further, the company is stepping beyond its domestic domain and 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 Sprint’s Global MPLS network.

We believe these strategies will fortify the company’s market penetration and furnish it with significant financial synergies as well as competitive advantage.

Sprint currently has a Zacks Rank #3 (Hold).

Other Stocks

Better-ranked stocks in this sector include Shenandoah Telecommunications Co. (SHEN), Nippon Telegraph and Telephone Corp. (NTT) and Level 3 Communications, Inc. (LVLT). While Shenandoah and Nippon boast a Zacks Rank #1 (Strong Buy), Level 3 Communications carries a Zacks Rank #2 (Buy).

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