Sprint Takes a Beating in Wake of Legere Comments on Network, CapEx

[YCGrad]

What does sprint turning a profit have to do with the questions I asked about tmobile? Why is everybody obsessed with what sprint is doing? Who cares what sprint is doing. So ahem....do you wish to answer the questions I asked about tmobile? Or do you just want to divert them like john did and talk about sprint? Because for a carrier that's "dead in the water and not doing anything" it sure does seem like there is a lot of attention being paid to them. So any answers? Unless you are suggesting that sprint not turning a profit has caused tmobiles postpaid and prepaid growth to slow drastically, is the cause of earnings lowering, is the cause of prepaid churn rising, is their crown jewel plan to catch att even with slowing growth in both the prepaid and postpaid markets, is the reason that they lost customers to sprint last quarter, are you suggesting the answers to all those are sprint not turning a profit? Because that makes no sense....but hey why answer tough questions about tmobile. Look at sprint instead.

FYI, you do realize that this is the Sprint forum (not T-Mobile) don't you? I must have missed it again. The last time Sprint turned a profit was when?

[gregorio102]

FYI, you do realize that this is the Sprint forum (not T-Mobile) don't you? I must have missed it again. The last time Sprint turned a profit was when?

No this post was recently moved to the sprint forum. It was started in the tmobile forum and was in the tmobile forum when i asked the questions. So, Again unless you are willing to answer the questions I asked.....are you suggesting sprint not turning a profit are a reason for the decline? Or you just don't know but feel compelled to respond because nobody answers you any other way?

[YCGrad]

Wasn't aware this thread originated in T-Mobile forum. The rest of your post makes no sense.

[bobdevnul]

FYI, you do realize that this is the Sprint forum (not T-Mobile) don't you? I must have missed it again. The last time Sprint turned a profit was when?

2006 was their last profitable year. They have been losing 2-4 billion a year since 2011. I think they did claim a profitable quarter recently by jiggering the books.

I want Sprint to succeed, but it doesn't look good.

[YCGrad]

2006 was their last profitable year. They have been losing 2-4 billion a year since 2011. I think they did claim a profitable quarter recently by jiggering the books.

I want Sprint to succeed, but it doesn't look good.

2006? Are you serious? Sprint hasn't turned a profit in a decade? Each and every move Sprint makes should be laser focused on improving the company product: NETWORK.

[bobdevnul]

2006? Are you serious? Sprint hasn't turned a profit in a decade? Each and every move Sprint makes should be laser focused on improving the company product: NETWORK.

I am serious. http://financials.morningstar.com/ratios/r.html?t=S Fifth line: Net Income. 2007 was a particularly bad year. They lost $30 billion. Total losses 2007-2015 $51.3 billion without a single profitable year.

In the same period, 2007-2015, Verizon, AT&T, and T-Mobile had all profitable years:
S $-51.3 billion
Vz $60.4 billion
T $106.2 billion
TMUS 2.3 billion

Of course Verizon and AT&T have significant business lines other than wireless.

[MoreSpeed]

Customer adds are down as an industry. Penetration rates are increasing. Fewer adults are living without a cell phone. The new to wireless segment is shrinking. Population growth is only going to offer around 400k net subs per quarter for the industry (prepaid and postpaid combined). Where do they go for growth? There will be price wars at the low end; while on the high end, 5g services will be a competitive advantage allowing high end carriers to justify price. I know we all think there is no application for 5g, but I used to think my 5mb hard drive was big enough too. Verizon and ATT will continue to justify high pricing. Expect Sprint and T-Mobile to have an all out price war in a race to the bottom. If T-Mobile is in a position to build out some 5g, then it's M+A time for Sprint to find a buyer (reluctant or not a buyer will come at the right price. The Buyers price.).

The lower growth is no surprise. We all knew people living without a cell phone, but they are getting rare. Even the "feature" phones are getting rare.

Connected Cars will phase in and out as people realize their cars can hotspot on their device. IOT will largely be connected to your home WIFI or to your phone. Alarms and ATM machines are always needed and will provide that sub $1.00 revenue per sub going forward. Maybe we will see a price war there. Just for customer counts.