Greg's Bite: Sprint and ClearWire -- Apple takeover targets?
TweetFollow Us on Twitter

Greg's Bite: Sprint and ClearWire -- Apple takeover targets?

By Greg Mills

Apple finally condescended to grant Sprint the iPhone in a deal that rocked Wall Street. Sprint is betting the farm that selling the iPhone will pull the third string US carrier out of the dumps and back into the big time. Apple and Sprint both seem to be quite confidant that simply having iPhones available for its customer base will turn the company around.

That might be true if the company lasts that long. Sprint is stone broke and mismanaged, running in all directions at once. They need a firm hand at the helm and don't have one. Making an agreement with Apple to buy 30,500,000 iPhones over the next four years at a cost of US$20 billion is rather rich considering the current market cap for Sprint is only $7 billion. Not only is the Apple deal too rich for Sprint, they recently announced that they intend to build out a new LTE G4 network that will cost them money they just don't have. Confidence in Sprint's management is the problem with the low valuation.

The problem at Sprint is simply bad management at the highest levels. There is nothing wrong with the spectrum or cellular network Sprint operates. ClearWire may have built out the wrong flavor of cellular technology, but that network can be converted to LTE 4G for peanuts by someone with cash. C;earWire is close to bankruptcy and Sprint is not helping. (See http://www.computerworld.com/s/article/9220658/Sprint_s_solo_LTE_plan_ig... .)

Sprint's (S) NASDAQ, market cap has shrunk to $7.2 billion and ClearWire (CLWR) NASDAQ, has shrunk to $1.27 billion as of the close of the market Friday. Clearly, someone with cash and an ability to focus could snatch Sprint out of the dust bin and fix the company. Sprint stock has fallen from a high of nearly $75 per share in October of 1999 to close at $2.41 Friday. ClearWire has fallen from a high of $32.50 in July, 2007 to $1.39 Friday.

UPDATE POSTED MONDAY Oct 10, 3 PM CENTRAL TIME:
Sprint continues a freefall to $2.20 per share and the sprint market cap has fallen to 6.6 Billion US. Sprint stock set a new 52 week low at $2.10 and rebounded slightly.

I submit that Sprint and ClearWire have gotten so cheap they amount to chump change for Apple or Google and ought to be bought out. The spectrum the two cell companies own alone is enough to justify the expenditure. I am convinced the problem at Sprint is upper management that can't devise and stick to a business plan that works.

Sprint bought the Nextel network some years ago and the merger was nothing short of a disaster. The two networks were incompatible electronically as was the focus of the consumer-oriented Sprint and the business-oriented Nextel. Sprint customer service was so bad a few years ago customers were leaving in droves.

Not having the iPhone wasn't the issue; it was rude customer service and service account rules that made consumer feel like chumps for ever having signed a contract with them. Rumors are that Sprint finally recognized that problem and has moved to fix it. I can not confirm that since I am still angry with Sprint five years down the road.

If Apple were to takeover sprint and ClearWire, fire everyone from the janitorial staff up and put strong business managers in place, a further investment over the next two years of $5 billion or so for a total investment of roughly $15 billion, Apple could own a strong network in the US. Renaming Sprint the Apple Cellular Network would reverse the fortunes of the company overnight and likely return the investment in the form of a dramatically increased market cap for Sprint and ClearWire in a matter of days. I think Sprint stock would soar if Apple took them over, as everyone knows what is wrong with Sprint.

That Apple is interested in running a cellular network comes from an interesting source. Tony Fadel holds an Apple patent where he conjures up a virtual cellular network that uses excess cellular capacity that can be purchased for chump change from the existing cellular networks and then resold through the iTunes store. Buying and renaming Sprint "Apple Cellular" is a much better idea.

Apple management has taken some criticism for hoarding more money that the US government. They contend that they will make "strategic purchases" when the time is right. The time is right to buy the third largest US cellular network outright for less than what Apple now makes in net profit in just three months' time. There are interesting ways to buy a major company that doesn't require all cash. I think Apple ought to move on Sprint and ClearWire before Google snatches them away.

That is Greg's Bite.

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

How to become the ultimate robot warrior...
Chrono Strike is a delightfully immersive beat ‘em up with a sense of humor (any game with a good Sims reference gets points in my book). [Read more] | Read more »
Tips and tricks to get a higher score in...
Snow Roll is a devilish endless runner very much in the vein of Flappy Bird. It revels in its dastardly level of difficulty, and doesn’t really care how angry you get at it as it knows you’ll keep coming back for more. [Read more] | Read more »
How to win big in Slots Deluxe
Cheating while gambling is illegal and morally wrong, and in some parts of the world it leads to men with names like Vinnie "Six Knuckles" Manchenzo beating you to a pulp in a dark alley. [Read more] | Read more »
How to take over the world in Dictator 2
Running a country isn't easy - especially when you're a dictator who wants to take over the world and crush everyone in your path while you do it. [Read more] | Read more »
Tips and tricks to get a higher score in...
Tank.iois - you guessed it! - another multiplayer arena battler likeAgar.io and Slither.io. It does differentiate itself by putting you in a tiny tank though, so it's not exactly the same. To help you get that all-important high score, we've got a... | Read more »
How to unlock characters in One Tap Tenn...
As the title suggests, One Tap Tennis requires only a single tap to play its particular brand of tennis, and rewards you with a ton of unlockable characters if you perform well. Fortunately for you, we at 148Apps have got a few tips and tricks to... | Read more »
Grab it now: Game Craft’s Legend of War...
The real time strategy game is now available for you to sink your teeth into, through the App Store and Google Play. Combining elements of skill, strategy and empire building, Legend of War is a real gamers’ game. [Read more] | Read more »
Skateboard Party 3 ft. Greg Lutzka (Gam...
Skateboard Party 3 ft. Greg Lutzka 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Skateboard Party is back! This third edition of the popular sports franchise features professional skater... | Read more »
Cubious (Games)
Cubious 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: Cubious – How smart are you? How high is your IQube? Solve the impossible puzzles to find out, and help a lost little cube find his... | Read more »
Goat Simulator Waste of Space (Games)
Goat Simulator Waste of Space 1.1 Device: iOS Universal Category: Games Price: $4.99, Version: 1.1 (iTunes) Description: ** IMPORTANT - SUPPORTED DEVICESiPhone 4S, iPad 2, iPod Touch 5 or better.** | Read more »

Price Scanner via MacPrices.net

Enterprise Workers Pick Technology Over Perks...
New Adobe study shows surprising attitudes about office jobs and where the future of work is heading. Adobe has released survey findings revealing that a surprising 70 percent of U.S. office workers... Read more
Memorial Day Weekend Sale: $50-$100 off 11-in...
B&H Photo has 13″ and 11″ MacBook Airs with 256GB SSDs on sale for $50-$100 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 11″ 1.6GHz/256GB MacBook Air: $999 $100 off MSRP... Read more
Memorial Day Weekend Sales: Apple MacBook Pro...
B&H Photo has 13″ and 15″ Retina MacBook Pros on sale for up to $210 off MSRP. Shipping is free, and B&H charges NY tax only: - 15″ 2.2GHz Retina MacBook Pro: $1799 $200 off MSRP - 15″ 2.5GHz... Read more
Memorial Day Weekend Sales: Apple iMacs and M...
Take up to $150 off the price of a new iMac or Mac mini at the following Apple resellers this Memorial Day weekend: iMacs: B&H Photo has 21″ and 27″ iMacs on sale for up to $150 off MSRP... Read more
Apple refurbished Retina MacBook Pros availab...
Apple has Certified Refurbished 2015 13″ and 15″ Retina MacBook Pros available for up to $380 off the cost of new models. An Apple one-year warranty is included with each model, and shipping is free... Read more
Apple refurbished 11-inch MacBook Airs availa...
Apple has Certified Refurbished 11″ MacBook Airs (the latest models), available for up to $170 off the cost of new models. An Apple one-year warranty is included with each MacBook, and shipping is... Read more
Goal Zero and OtterBox Partner to Expand iPh...
Goal Zero, specialists in portable power, have announced a partnership with OtterBox, brand smartphone case protection, to offer the Slide and Slide Plus Batteries as modules compatible with the new... Read more
15-inch Retina MacBook Pros on sale for up to...
B&H Photo has 15″ Retina MacBook Pros on sale for up to $210 off MSRP. Shipping is free, and B&H charges NY tax only: - 15″ 2.2GHz Retina MacBook Pro: $1799 $200 off MSRP - 15″ 2.5GHz Retina... Read more
Clearance 2015 13-inch MacBook Airs available...
B&H Photo has clearance 2015 13″ MacBook Airs available for $250 off original MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 1.6GHz/4GB/128GB MacBook Air (MJVE2LL/A): $799... Read more
Apple refurbished Apple TVs available for up...
Apple has Certified Refurbished 32GB and 64GB Apple TVs available for up to $30 off the cost of new models. Apple’s standard one-year warranty is included with each model, and shipping is free: -... Read more

Jobs Board

*Apple* Solutions Consultant - APPLE (United...
Job Summary As an Apple Solutions Consultant, you'll be the link between our future customers and our products. You'll showcase your entrepreneurial spirit as you Read more
*Apple* Project Engineer - Smart Source Inc...
SmartSource is in need of an Apple Project Engineer for a 12 month contract opportunity in Pittsburg, PA. Role: Apple Project Engineer Location: Pittsburg, PA Read more
Automotive Sales Consultant - Apple Ford Linc...
…you. The best candidates are smart, technologically savvy and are customer focused. Apple Ford Lincoln Apple Valley is different, because: $30,000 annual salary Read more
Service Assistant - *Apple* Chevrolet *App...
Apple Automotive is one of the fastest growing dealer...and it shows. Consider making the switch to the Apple Automotive Group today! At Apple Automotive, we Read more
Editor, *Apple* News - APPLE (United States...
Job Summary The Apple News team is looking for a passionate and knowledgeable editor with experience covering entertainment/pop culture and experience running social Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.