Sprint Corporation (NYSE:S) has called off its bid to acquire T-Mobile Us Inc (NYSE:PCS) amid the intense pressure from regulators. After this step, Sprint has to capture the lost market using standalone strategies. Discussing opportunities for Sprint and how Apple Inc. (NASDAQ:AAPL) might help it to gain the pace again Jennifer Fritzsche, Wells Fargo & Co (NYSE:WFC)’s analyst said, in a program, on CNBC that Apple Inc. (NASDAQ:AAPL) is about to launch a 2.5GHz supporting chip and that will be the biggest chance for Sprint to chase the market. She said that Sprint has the potential to succeed in the coming days. She is hopeful about Sprint’s future despite the decline of its stock.
“I believe Sprint Corporation (NYSE:S) can [rebuild its sub base], I think today’s reaction in the stock is a total capitulation and if you look at this company, and the things they have been doing at the network it’s been a slow grind but we are kind of seeing the light at the end of the tunnel here,” said Fritzsche.
She said that Apple Inc. (NASDAQ:AAPL) remains the biggest opportunity for Sprint Corporation (NYSE:S) as most of the US market is captured by Apple Inc. (NASDAQ:AAPL) and if Sprint Corporation (NYSE:S) succeeds in ceasing the iPhone users, the market will be tilted in its favor.
“I think a lot depends upon what we see from Apple Inc. (NASDAQ:AAPL) actually. The key part of Sprint’s strategy is the ability to use their old clear wire spectrum, which is 2.5 Ghz, no iPhone yet to date has supported that spectrum, so if we see Apple introduce one with the 2.5 Ghz chip, I think it’s a game changer for Sprint,” said Fritzsche.
Answering a question about Sprint Corporation (NYSE:S) stock position and revenue losses, Fritzsche said that asset value must be inculcated while making any guesses and Sprint has the ability to catch up in future.
“I think we have to look at the asset value under this stock, I mean when you include the 2.5 spectrum, Sprint Corporation (NYSE:S) of the big four national carriers has more spectrum than any of the four players, I am including At&T and Verizon in that statement and you know if you have other companies not in the wireless industry, like Yahoo! Inc. (NASDAQ:YHOO), like Google Inc (NASDAQ:GOOGL), talking about wireless, the mobility being your future, there is a finite asset here and Sprint has the most of it,” she said.
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