In August 2018, Sprint touted subscriber gains and raised its expectations for earnings. In September, Sprint now claims it is “unable” to recover from “crippling losses.”
Customers are fleeing at an increasing rate, Sprint now tells the U.S. Federal Communications Commission in a filing.
Revenue is dropping and the company can’t cut much more after eliminating about $10 billion in annual costs, Sprint now says. The decline means Sprint can’t afford needed investments, Sprint also says.
So which version of the story is the real story? The same sort of confusion also surrounds strategy for a merged T-Mobile US and Sprint. After T-Mobile US officials downplayed the value of 5G fixed wireless, the firm now seemingly suggests it sees 5G wireless as a compelling growth story
T-Mobilke now seems to suggest it will use 5G fixed wireless as a platform to bring competition to the fixed internet access market, claiming it can garner perhaps 1.9 million subscribers by 2021 and perhaps 9.5 million by 2024. Whether T-Mobile US would consider using fixed wireless if the merger with Sprint is not approved is not so clear. Nor, in fact, is the matter of what approach actually would be considered, if the merger is approved.
Maybe neither T-Mobile US nor Sprint are completely sure what direction they might go, if the merger is denied, or if it proceeds.
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