I have a hard time looking at the numbers.
Sprint, right now, will default on its debt in march of 2012. Not including the lte upgrades and the iphone subsidy.
LTE, by sprint admission, will cost 5 billion in 2012 and 5 billion in 2013, remember verizon is spending only 5 billion to build out it lte network and sprint already spent 10 billion to build out wimax. The iphone will cost sprint, 8 billion dollars in 2012.
Now including the 19.5 billion in debt compared to the 3 billion they take in annually. I just don't understand how sprint is going to make 16 billion dollars in 2012 to cover everything.
Bottom line, sprint is looking for a buy out. Unless someone can explain to me how a company that is 19.5 billion dollars in debt, has the ability to make up 16 billion dollars in 1 year.
It has a Ba3 junk rating. In fact, most of the investment firms state one thing about sprint "un-invest-able".
As for the wimax doom and gloom crowd. Wimax is going nowhere. It is being used to replace your wifi connections.