Sprint really wants a deal
Sprint executives are practically begging for some kind of deal.
The unprofitable wireless carrier, the fourthlargest in the U.S., says it can “sustain itself” without combining with another telecom company — but it would do better with a partner.
Sprint has been cutting costs and adding the high-value subscribers who are billed for service monthly, instead of paying up front.
Analysts see trouble ahead, though, because of concerns it hasn’t been investing enough in its network. If Sprint’s service is eventually considered worse because of that, it’ll have a hard time keeping customers, especially as rivals have comparable plans.
Joining with fast-growing T-Mobile, as long predicted, would mean cost savings and, with less competition, perhaps less of a need for aggressive promotions that hurt profits. Doing a cable-company deal would make it easier for Sprint to roll out the network upgrade expected in the next few years from all major wireless carriers. “5G” is supposed to mean faster speeds for wireless users. A phone-and-cable company could also promote video and wireless service packages. AT&T, the owner of DirecTV, says that bundling is helping it hang on to customers.