AfterDawn: Tech news

Sprint needs $7 billion moving forward

Written by Andre Yoskowitz (Google+) @ 26 Oct 2011 14:53 User comments (9)

Sprint needs $7 billion moving forward Sprint, following its 16th straight losing quarter, has said today that it may need up to $7 billion in capital going forward to pay for its upcoming network upgrade and new handsets, including the iPhone.
The company will refinance $4 billion of its current debt and look to secure $1-$3 billion in new financing from suppliers.

What is clear, however, is that company is in trouble. Sprint has $20 billion in outstanding debt, with 60 percent coming due before 2016. The company only has $4 billion in cash and liquid investments.

Additionally, the company's massive $20 billion bet on the iPhone has cost their credit rating, which is now B1, well below "investment grade" and barely above "junk."

For the quarter, the company lost $300 million, down from a $900 million loss year-over-year.

Tags: iPhone Sprint
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9 user comments

126.10.2011 15:23

Damn Damn DAMN!!!! I root for the underdog. I was willing to deal with the dropped calls and spotty coverage but if sprint loses it's shirt VZ and At$t and gonna rake the customers against the coals. I believe sprint is the only buffer for the little guys like metro to even stay in business. They can stop spending buy cutting those commercials. We know your unlimited. Do some network marketing.
I hope they pull through, I love the unlimited plan.

226.10.2011 19:12

Originally posted by ruff469:
Damn Damn DAMN!!!! I root for the underdog. I was willing to deal with the dropped calls and spotty coverage but if sprint loses it's shirt VZ and At$t and gonna rake the customers against the coals. I believe sprint is the only buffer for the little guys like metro to even stay in business. They can stop spending buy cutting those commercials. We know your unlimited. Do some network marketing.
I hope they pull through, I love the unlimited plan.
agree, I love sprint, they should really spend their money on their network instead of crapple phones. I know they are trying to get more customers by having crapple in the company, but man, that's a lot of money to pay and I really don't know if they will be making it back unless they are #1 in speed and faster than any other network plus more coverage. I really hope my area by where i live they be speeding it up or put a tower nearby, cuz is really not fast unless i'm near downtown. Pull it through Sprint, start by adding more towers and have better coverage and then work your way to speed up the network.

Being nice always has its own consequences

326.10.2011 19:22

They really need to upgrade their network. Poor coverage and poor 3G data speeds is what has kept me away from them since 2008. Up until now they've just made a string of bad decisions, Nextel, Wimax.

However, we consumers do need them as a 3rd player in the market. T-Mobile isn't losing money like Sprint but they will probably be gone by this time next year and that will already cut us to 3.

426.10.2011 20:12

Maybe they could save $750 mil a year for naming rights by backing out of NASCAR

526.10.2011 22:55

Originally posted by Hyasuma:
agree, I love sprint, they should really spend their money on their network instead of crapple phones.

I think the crapple products are the right choice. It is the far cheaper investment in terms of trying to make money. In some markets they may be able to pull customers away from VZW and ATT which also means more money in there pocket. From the sounds of it they really need something to bring some money in.

Originally posted by ZeusAV:
T-Mobile isn't losing money like Sprint but they will probably be gone by this time next year and that will already cut us to 3.

I hope thats not the case. I mean the DOJ did file a law suit but then again it could all just for show so it doesnt look like they just let it happen.

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628.10.2011 13:25

I wish sprint will go away ..... SERVICE SUCKS!!

729.10.2011 1:09

Originally posted by kfir1:
I wish sprint will go away ..... SERVICE SUCKS!!
they are working on it, and to be honest, they are better than they ever did before. Until they get the coverage and network speed up I think they are in good hand, I hate to pay NO Unlimited anything with other shitty service like Att and Verizon

Being nice always has its own consequences

829.10.2011 17:12

Originally posted by Hyasuma:
Originally posted by kfir1:
I wish sprint will go away ..... SERVICE SUCKS!!
they are working on it, and to be honest, they are better than they ever did before. Until they get the coverage and network speed up I think they are in good hand, I hate to pay NO Unlimited anything with other shitty service like Att and Verizon
They've been working on it for a long time now. If they want to survive they better provide better service than tmobile. I have yet to see any improvements with sprint signal since 4 years ago, spotty.

929.10.2011 17:39

Perhaps the politicians (who made their own bribery, legal) can oblige by lending them the money.

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