The Last Thing Sprint Needed Was More Competition

Sprint Nextel Corp (S) continues an impressive comeback that has seen the number three domestic wireless provider reclaim its position as a force in the domestic markets. Unfortunately though, news came out today that fourth place provider T-Mobile (DTEGY.PK) just scored a $2.4B cash deal to leaseback cell towers, just weeks after T-Mobile hired a heavy hitting CEO to reinvigorate subscriber growth with a target on Sprint.

As Stone Fox Capital wrote back at the end of August, Sprint was starting to thrive by being the leading wireless provider with an unlimited data plan and the non-duopoly player that has the iPhone.

Do these announcements change the dynamics in the sector? The last thing Sprint needs is a competitor attacking their base just as the company is getting its act together. Competition remains one of the biggest drawbacks to investing in the wireless service provider sector.

Read the full article at Seeking Alpha.

Disclosure: No positions mentioned. Please review the disclaimer page for more details. 


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