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Everything posted by RedSpark
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The crazy promotions should have been spent on capex instead. Those promotions were all for nought in my opinion. They didn’t wind up creating enough long term customers out of them. The underlying product didn’t convey a sense of true value without being on a promotion. People left because they didn’t perceive Sprint as a brand worth the regular cost. All these crazy promotions did was defer the customer losses we’re seeing now for a year or two or three. They didn’t make sense to do in the first place. Sprint missed a real opportunity for effective capex in the past few years, customer losses be damned, because they’re happening right now anyway and Sprint is well behind the curve on where it should be on its network. If the product improves, people won’t leave if they perceive value.... but if it doesn’t measure up, they won’t come in the first place.
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The interest expense that Sprint is carrying alone is just punishing: “$619 million, which ate up $455 million in operating income and left the company with a $111 million loss.” I agree with you completely. The level of capex that Sprint is spending just isn’t enough to get ahead of the curve to reverse this trend. Instead, the amount they’re spending is effectively returning zero. They aren’t profitable and they aren’t gaining customers.
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Sprint’s capex still hasn’t been enough to change the trajectory of the company, and the net losses show that. It’s enough to say they’re doing something, but it’s not enough to result in a major network transformation to gain customers. Should this merger fail, I believe Softbank will have to pitch in some major capital.
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Yeah, this is not a good look, capex surge or not. The capex hasn’t made a difference yet. The fact that people aren’t staying with Sprint without promotions means that Sprint’s underlying value proposition isn’t working, and that’s because it’s not perceived as a product that people are willing to pay more for, as is the case with Verizon (if their marketing and network awards are taken at face value) when the promos run out. When you do the math on 175k net losses, that’s almost 2,000 lines lost per day for the quarter! That’s not a sustainable trend line.
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Since they didn’t report it, I have a feeling not much progess was made on that. Unless I missed it, they also didn’t say how many customers are still on Subsidized Plans. As there’s no actual Earnings Call, these questions aren’t able to be asked of management. Perhaps Saw would respond to a tweet question?... Unless legal tells him not to.
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Official Tmobile-Sprint merger discussion thread
RedSpark replied to Nextel49's topic in T-Mobile Merger/5G NR Deployment
No. Apparently, you can’t even activate a 5G phone without the Unlimited Premium plan on the account.... unless you have a legacy ED plan. Good points here. -
Fiscal 2019 First Quarter Earnings are out... with a “Message from Management”. The company had 175,000 net losses in the current quarter compared with 57,000 net additions in the year-ago period and 8,000 net losses in the prior quarter. Sprint ended the quarter with 54.3 million connections, including 33.1 million postpaid, 8.6 million prepaid, and 12.6 million wholesale and affiliate connections. 175k net losses... ugh. At least there are ~3,000 MIMO units on air now, but this gives you a sense of the pace of Sprint’s 5G deployment.... “Better than expected”? Not the best take... 😕
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Official Tmobile-Sprint merger discussion thread
RedSpark replied to Nextel49's topic in T-Mobile Merger/5G NR Deployment
They are “keeping” it.... sort of. Sprint sold it and is leasing it back for 10 years. New T-Mobile will assume the lease. -
Official Tmobile-Sprint merger discussion thread
RedSpark replied to Nextel49's topic in T-Mobile Merger/5G NR Deployment
The Sprint Campus is a massive complex. You can read more about it and its history here: https://en.wikipedia.org/wiki/Sprint_World_Headquarters_Campus Here’s a photo tour from 2011: https://www.cnet.com/pictures/a-tour-of-sprints-kansas-headquarters-photos/ -
Official Tmobile-Sprint merger discussion thread
RedSpark replied to Nextel49's topic in T-Mobile Merger/5G NR Deployment
When asked about the transaction Tuesday, Sprint officials declined to discuss the terms of the sale, calling them confidential. “Sprint is leasing back the space we need, and the Sprint headquarters will remain on the Overland Park campus,” Sprint spokeswoman Andrea Shores wrote in an email. “This sale enables us to use proceeds from the sale to reinvest in the buildings we plan to use in order to create a collaborative environment for Sprint partners — along with an innovative workspace to attract top talent.” Read more here: https://www.kansascity.com/news/business/article233028002.html -
Official Tmobile-Sprint merger discussion thread
RedSpark replied to Nextel49's topic in T-Mobile Merger/5G NR Deployment
Sprint and T-Mobile US campuses sell for more than $700 million total Sprint sold Overland Park campus for ‘modest’ price. Why that might not be a bad thing Sprint sold its Overland Park campus for $250.9 million — tens of millions of dollars below Johnson County’s appraised value of $342.5 million, according to research compiled by the investment research firm Moody’s. In exchange for what Moody’s characterized as a “modest” sale price, Sprint secured a 10-year lease of office space well below market rent. Wow. 🙁 -
Official Tmobile-Sprint merger discussion thread
RedSpark replied to Nextel49's topic in T-Mobile Merger/5G NR Deployment
So basically the entirety of both networks is getting a coverage and capacity audit? -
Official Tmobile-Sprint merger discussion thread
RedSpark replied to Nextel49's topic in T-Mobile Merger/5G NR Deployment
Perhaps I’ll set a small amount of money aside to give this a try. -
Official Tmobile-Sprint merger discussion thread
RedSpark replied to Nextel49's topic in T-Mobile Merger/5G NR Deployment
Thanks! That’s really helpful. So it seems that the action point is the $10 amount. Can people wait for it to go substantially above $10? How long do people have on options? -
Official Tmobile-Sprint merger discussion thread
RedSpark replied to Nextel49's topic in T-Mobile Merger/5G NR Deployment
Wow! That’s incredible. Thanks for the explanation. I’ve never done options before. This sounded like a good opportunity to do it. I’m still a little unclear on what “strike price” means in this context though. -
Official Tmobile-Sprint merger discussion thread
RedSpark replied to Nextel49's topic in T-Mobile Merger/5G NR Deployment
Nice! Would you mind sharing more details on what you did? Just curious to learn more. -
Official Tmobile-Sprint merger discussion thread
RedSpark replied to Nextel49's topic in T-Mobile Merger/5G NR Deployment
What does this mean for Sprint’s network upgrades in progress or which haven’t launched yet? 5G in Washington DC for example. Will those be halted pending T-Mobile’s management decisions? -
Official Tmobile-Sprint merger discussion thread
RedSpark replied to Nextel49's topic in T-Mobile Merger/5G NR Deployment
By allowing this merger, Masa and Marcelo are effectively getting a bailout from the market for their poor strategy and management of Sprint. Even if there’s divestment to create a 4th Carrier, that Carrier will essentially be the new Sprint, and in similar competitive position. -
Good read... However, speed tests sell to some people who care about specs like 0-60 times in cars. For other people, it’s 0-60.... yes.
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Official Tmobile-Sprint merger discussion thread
RedSpark replied to Nextel49's topic in T-Mobile Merger/5G NR Deployment
U.S. Poised to Approve Merger of T-Mobile, Sprint https://www.wsj.com/articles/u-s-poised-to-approve-merger-of-t-mobile-sprint-11563967640 Deutsche Telekom sets meeting as T-Mobile, Sprint deal nears approval: report https://www.reuters.com/article/us-sprint-corp-m-a-t-mobileus-idUSKCN1UJ0KF