Sprint opposes a merger that will be in the best interest of American consumers, workers, and the public. Sprint argues that the reason for their opposition is to protect free-market competition. But, while the corporation is claiming that an AT&T/T-Mobile merger would lead to a duopoly between AT&T and Verizon, Sprint is publicly touting that they are a strong player in the market and, in fact, that their strength is improving – and its future business plans show that as well.
Sprint’s Finances at a Glance
Sprint is working to improve its standing in the wireless market and taking steps to ensure a viable future for its own bottom line – regardless of its competition. Two examples of this are its recent announcement that it is making large investments in their wireless networks and its upcoming sale of the iPhone 5. [NextBigFuture, 12/6/10; Wall Street Journal, 8/23/11]
Sprint’s failure to make significant investments in capital expenditures over the last four years is harmful to its current and future customers, and the question must be asked: will it be the customers who ultimately pay to help Sprint catch up? Between 2007 and the first-quarter of 2011, Sprint Nextel invested nearly $10 billion less than the average telecommunications companies – more than $7 billion less than the average of its peers related to its wireless operations. [U.S. Telecom Capital Investment Review, Fitch Ratings, 8/11/11]