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

OS X Server 4.1.3 - For OS X 10.10 Yosem...
Designed for OS X and iOS devices, OS X Server makes it easy to share files, schedule meetings, synchronize contacts, develop software, host your own website, publish wikis, configure Mac, iPhone,... Read more
pwSafe 4.1 - Secure password management...
pwSafe provides simple and secure password management across devices and computers. pwSafe uses iCloud to keep your password databases backed-up and synced between Macs and iOS devices. It is... Read more
Kodi 15.0.rc1 - Powerful media center to...
Kodi (was XBMC) is an award-winning free and open-source (GPL) software media player and entertainment hub that can be installed on Linux, OS X, Windows, iOS, and Android, featuring a 10-foot user... Read more
Coda 2.5.11 - One-window Web development...
Coda is a powerful Web editor that puts everything in one place. An editor. Terminal. CSS. Files. With Coda 2, we went beyond expectations. With loads of new, much-requested features, a few surprises... Read more
Bookends 12.5.7 - Reference management a...
Bookends is a full-featured bibliography/reference and information-management system for students and professionals. Access the power of Bookends directly from Mellel, Nisus Writer Pro, or MS Word (... Read more
Maya 2016 - Professional 3D modeling and...
Maya is an award-winning software and powerful, integrated 3D modeling, animation, visual effects, and rendering solution. Because Maya is based on an open architecture, all your work can be scripted... Read more
RapidWeaver 6.2.3 - Create template-base...
RapidWeaver is a next-generation Web design application to help you easily create professional-looking Web sites in minutes. No knowledge of complex code is required, RapidWeaver will take care of... Read more
MacFamilyTree 7.5.2 - Create and explore...
MacFamilyTree gives genealogy a facelift: it's modern, interactive, incredibly fast, and easy to use. We're convinced that generations of chroniclers would have loved to trade in their genealogy... Read more
Paragraphs 1.0.1 - Writing tool just for...
Paragraphs is an app just for writers. It was built for one thing and one thing only: writing. It gives you everything you need to create brilliant prose and does away with the rest. Everything in... Read more
BlueStacks App Player 0.9.21 - Run Andro...
BlueStacks App Player lets you run your Android apps fast and fullscreen on your Mac. Version 0.9.21: Note: Now requires OS X 10.8 or later running on a 64-bit Intel processor. Initial stable... Read more

Rage of Bahamut is Giving Almost All of...
The App Store isn't what it used to be back in 2012, so it's not unexpected to see some games changing their structures with the times. Now we can add Rage of Bahamut to that list with the recent announcement that the game is severely cutting back... | Read more »
Adventures of Pip (Games)
Adventures of Pip 1.0 Device: iOS iPhone Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: ** ONE WEEK ONLY — 66% OFF! *** “Adventures of Pip is a delightful little platformer full of charm, challenge and impeccable... | Read more »
Divide By Sheep - Tips, Tricks, and Stre...
Who would have thought splitting up sheep could be so involved? Anyone who’s played Divide by Sheep, that’s who! While we’re not about to give you complete solutions to everything (because that’s just cheating), we will happily give you some... | Read more »
NaturalMotion and Zynga Have Started Tea...
An official sequel to 2012's CSR Racing is officially on the way, with Zynga and NaturalMotion releasing a short teaser trailer to get everyone excited. Well, as excited as one can get from a trailer with no gameplay footage, anyway. [Read more] | Read more »
Grab a Friend and Pick up Overkill 3, Be...
Overkill 3 is a pretty enjoyable third-person shooter that was sort of begging for some online multiplayer. Fortunately the begging can stop, because its newest update has added an online co-op mode. [Read more] | Read more »
Scanner Pro's Newest Update Adds Au...
Scanner Pro is one of the most popular document scanning apps on iOS, thanks in no small part to its near-constant updates, I'm sure. Now we're up to update number six, and it adds some pretty handy new features. [Read more] | Read more »
Heroki (Games)
Heroki 1.0 Device: iOS Universal Category: Games Price: $7.99, Version: 1.0 (iTunes) Description: CLEAR THE SKIES FOR A NEW HERO!The peaceful sky village of Levantia is in danger! The dastardly Dr. N. Forchin and his accomplice,... | Read more »
Wars of the Roses (Games)
Wars of the Roses 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: | Read more »
TapMon Battle (Games)
TapMon Battle 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: It's time to battle!Tap! Tap! Tap! Try tap a egg to hatch a Tapmon!Do a battle with another tapmons using your hatched tapmons! *... | Read more »
Alchemic Dungeons (Games)
Alchemic Dungeons 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: ### Release Event! ### 2.99$->0.99$ for limited time! ### Roguelike Role Playing Game! ### Alchemic Dungeons is roguelike... | Read more »

Price Scanner via MacPrices.net

Seagate Backup Plus Drives Feature 200GB of C...
Seagate Technology plc has announced that its Backup Plus family of external storage offerings will now include 200GB of OneDrive cloud storage, a major added value, and the addition of Lyve’s photo... Read more
Canon PIXMA MG3620 Wireless Inkjet All-in-One...
Canon U.S.A., Inc. has announced the PIXMA MG3620 Wireless (1) Inkjet All-in-One (AIO) printer for high-quality photo and document printing. Built with convenience in mind for the everyday home user... Read more
July 4th Holiday Weekend 13-inch MacBook Pro...
Save up to $150 on the purchase of a new 2015 13″ Retina MacBook Pro at the following resellers this weekend. Shipping is free with each model: 2.7GHz/128GB MSRP $1299 2.7GHz/... Read more
27-inch 3.5GHz 5K iMac on sale for $2149, sav...
Best Buy has the 27″ 3.5GHz 5K iMac on sale for $2149.99. Choose free shipping or free local store pickup (if available). Sale price for online orders only, in-store prices may vary. Their price is $... Read more
Apple now offering refurbished 2015 11-inch...
The Apple Store is now offering Apple Certified Refurbished 2015 11″ MacBook Airs as well as 13″ MacBook Airs (the latest models), available for up to $180 off the cost of new models. An Apple one-... Read more
15-inch 2.5GHz Retina MacBook Pro on sale for...
Amazon.com has the 15″ 2.5GHz Retina MacBook Pro on sale for $2274 including free shipping. Their price is $225 off MSRP, and it’s the lowest price available for this model. Read more
Finally Safe To Upgrade To Yosemite’?
The reason I’ve held back from upgrading my MacBook Air from OS X 10.9 Mavericks to 10.10 Yosemite for nearly a year isn’t just procrastination. Among other bugs reported, there have been persistent... Read more
Logo Pop Free Vector Logo Design App For OS X...
128bit Technologies has released of Logo Pop Free 1.2 for Mac OS X, a vector based, full-fledged, logo design app available exclusively on the Mac App Store for the agreeable price of absolutely free... Read more
21-inch 1.4GHz iMac on sale for $999, save $1...
B&H Photo has new 21″ 1.4GHz iMac on sale for $999 including free shipping plus NY sales tax only. Their price is $100 off MSRP. Best Buy has the 21″ 1.4GHz iMac on sale for $999.99 on their... Read more
16GB iPad mini 3 on sale for $339, save $60
B&H Photo has the 16GB iPad mini 3 WiFi on sale for $339 including free shipping plus NY tax only. Their price is $60 off MSRP. Read more

Jobs Board

Frameworks Engineer, *Apple* Watch - Apple...
**Job Summary** Join the team that is shaping the future of software development for Apple Watch! As a software engineer on the Apple Watch Frameworks team you will Read more
Mobile Payments Counsel, *Apple* Pay (digit...
**Job Summary** Apple is looking for an atto ey to join Apple 's Legal Department to support Apple Pay. **Key Qualifications** 4+ years of relevant experience Read more
*Apple* Solutions Consultant - Retail Sales...
**Job Summary** The ASC is an Apple employee who serves as the Apple business manager and influencer in a hyper-business critical Reseller's store which delivers Read more
Partner Marketing Manager, Merchant- *Apple*...
**Job Summary** The Apple Pay partner marketing team is looking for a marketing manager to develop and drive US marketing programs with our merchant partners. The right Read more
*Apple* Solutions Consultant - Retail Sales...
**Job Summary** As an Apple Solutions Consultant (ASC) you are the link between our customers and our products. Your role is to drive the Apple business in a retail Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.