About Sprint Communications, Inc.

Sprint Communications runs hard in the wireless communications race, but with just 55 million subscribers it trails Verizon, AT&T, and T-Mobile. The company offers premium postpaid service under the Sprint brand, as well as prepaid mobile access through its Virgin Mobile USA and Boost Mobile subsidiaries, which target a younger demographic. Sprint also provides cellular access to other carriers and resellers on a wholesale basis. The company's legacy wireline business provides long-distance voice, internet, and data services primarily to corporate customers and other carriers. Japan's SOFTBANK owns more than 80% of Sprint. In 2018, Sprint and T-Mobile announced their third try at a merger in a $26.5 billion deal. Regulators shot down the first two on competition concerns.

Change in Company Type

For the third time, Sprint and T-Mobile, majority-owned by Deutsche Telekom, agreed to team up in a $26.5 billion deal that would form the third largest wireless carrier after Verizon Communications and AT&T Inc. Previous attempts were scuttled by regulators' antitrust concerns. Sprint and T-Mobile hope that a new regulatory environment gives them a better chance this time. They promised to keep prices low for consumers while using their assets to build a robust 5G network, the next generation of wireless technology. The merged company would take the T-Mobile name. The deal came together once Softbank, Sprint's majority owner, agreed to give Deutsche Telekom control of the combined company.

Operations

Sprint operates in two main segments: Wireless and Wireless equipment. Wireless primarily includes retail wholesale, and affiliate revenue from a wide array of wireless voice and data transmission services and accounts for more than three-quarters of revenue. About 15% came from wireless equipment, which includes wireless devices and accessories. Wireline accounts for the remaining revenue.

Geographic Reach

Sprint, headquartered in Overland Park, Kansas, offers wireless and wireline voice and data transmission services to subscribers in all 50 US states, Puerto Rico, and the US Virgin Islands.

Sales and Marketing

Sprint serves more than 55 million customers with mobile voice, data, and Web services over a nationwide network.

Sprint sells its products through direct sales representatives, retail outlets owned and operated by the company, indirect sales agents, and subscriber-convenient channels, including web sales and telesales. The company focuses on the marketing and sales of wireless services on targeted groups of retail subscribers: individual consumers, businesses, and government organizations.

Sprint markets its services using traditional print and television advertising along with online ads and various sponsorships. Its advertising expenses average about $1.3 billion a year.

Financial Performance

Sprint's revenue had fluctuated about $1 billion up or down in the past several years while it has consistently loss money.

In 2017 (ended March), revenue increased about 4% to $33.3 billion compared to 2016. Equipment revenue jumped about 60% to nearly $8 billion in 2017 from higher leasing revenue from the leasing program as more subscribers leased their device. Sprint also reported that more used postpaid devices were sold to third parties.Retail service revenue dropped 6% in 2017 on an increase in subscribers who had lower price plans and fewer average prepaid subscribers. The company posted a gain in the number of in average postpaid subscribers.

Reduced expenses in 2017 helped cut Sprint's loss to $1.2 billion from $1.9 billion in 2016.

Sprint had a bit more cash, $2.9 billion, on hand at the end of 2017 than 2016 when it had $2.6 billion.

Strategy

Sprint had achieved postpaid subscriber growth, cut about $1 billion in expenses over several years, and was ready to roll out a 5G network in several US cities in 2018. Further, the company, with the backing of owner Softbank, had invested in upgrading its network around the country. But even with all that, Sprint reached the conclusion that it was better off partnering with T-Mobile to compete in the wireless market. The deal the companies announced in April 2018 would make T-Mobile majority owner of the combined company, which would operate under the T-Mobile name.

The companies believe that their capacity to deploy a 5G network quickly is the key to gaining regulatory approval for the merger. The promise of 5G is that is can deliver much faster speeds at lower latency than 4G networks, enabling a range of other technologies such as self-driving cars and augmented and virtual reality.

Should federal regulators nix the deal, Sprint will still concentrate on building its 5G network. The company believes that the spectrum that it owns is the sweet spot for 5G transmission.

The company also is building up its retail outreach, opening some 1,000 stores around the US under the Sprint and Boost brand names.

If the T-Mobile merger fails, Sprint would remain #4 in wireless phone service, dwarfed by AT&T, Verizon, and to a lesser extent, T-Mobile. The company would have to maintain a certain level of investment in network upgrades, expansion, and other initiatives while carrying a good amount of debt.

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Sprint Communications, Inc.

6200 Sprint Pkwy
Overland Park, KS 66251-6117
Phone: 1 (855) 848-3280

Stats

  • Employer Type: Public
  • Pres-strategy & Corporate Dev': Keith Cowan
  • Pres-ceo: Dan Hesse
  • Chief Strategy Officer: Thomas N Kelly
  • Employees: 28,000

Major Office Locations

  • Overland Park, KS

Other Locations

  • Birmingham, AL
  • Fairhope, AL
  • Hot Springs, AR
  • Sun City, AZ
  • Benicia, CA
  • Camarillo, CA
  • Chico, CA
  • Chino, CA
  • Lomita, CA
  • Palm Desert, CA
  • Pinole, CA
  • Roseville, CA
  • San Marcos, CA
  • Sherman Oaks, CA
  • Simi Valley, CA
  • Tracy, CA
  • Lakewood, CO
  • Bristol, CT
  • Norwalk, CT
  • Stamford, CT
  • Georgetown, DE
  • New Castle, DE
  • Rehoboth Beach, DE
  • Bonita Springs, FL
  • Brandon, FL
  • Clearwater, FL
  • Doral, FL
  • Fort Myers, FL
  • Jacksonville, FL
  • Lake Wales, FL
  • Lutz, FL
  • Miami, FL
  • Naples, FL
  • North Fort Myers, FL
  • Ocala, FL
  • Plant City, FL
  • Zephyrhills, FL
  • Athens, GA
  • Atlanta, GA
  • Buford, GA
  • Carrollton, GA
  • Columbus, GA
  • Roswell, GA
  • Thomasville, GA
  • Winder, GA
  • Haleiwa, HI
  • Boise, ID
  • Burley, ID
  • Nampa, ID
  • Twin Falls, ID
  • Bolingbrook, IL
  • Burbank, IL
  • Country Club Hills, IL
  • Matteson, IL
  • North Aurora, IL
  • Orland Park, IL
  • Spring Grove, IL
  • Fort Wayne, IN
  • Michigan City, IN
  • Terre Haute, IN
  • Lake Zurich, KS
  • Shawnee Mission, KS
  • Wichita, KS
  • Berea, KY
  • Dry Ridge, KY
  • Lexington, KY
  • Boutte, LA
  • Houma, LA
  • Lafayette, LA
  • Opelousas, LA
  • Acton, MA
  • Brockton, MA
  • Cambridge, MA
  • Dorchester, MA
  • East Wareham, MA
  • Gloucester, MA
  • Littleton, MA
  • Lynn, MA
  • Mattapan, MA
  • Millbury, MA
  • Newton, MA
  • Orleans, MA
  • Peabody, MA
  • Somerset, MA
  • South Weymouth, MA
  • Stoughton, MA
  • Waltham, MA
  • Baltimore, MD
  • Gaithersburg, MD
  • Hyattsville, MD
  • Lexington Park, MD
  • Mount Airy, MD
  • Takoma Park, MD
  • Birch Run, MI
  • Commerce Township, MI
  • Minneapolis, MN
  • Joplin, MO
  • Sedalia, MO
  • Knightdale, NC
  • Raleigh, NC
  • Bellevue, NE
  • Newington, NH
  • North Hampton, NH
  • Albuquerque, NM
  • Carlsbad, NM
  • Las Vegas, NV
  • New York, NY
  • Bellefontaine, OH
  • Sidney, OH
  • Youngstown, OH
  • Easton, PA
  • Philadelphia, PA
  • Reading, PA
  • Warrington, PA
  • North Myrtle Beach, SC
  • Brookings, SD
  • Clarksville, TN
  • Cookeville, TN
  • Madison, TN
  • Nashville, TN
  • Corpus Christi, TX
  • Dallas, TX
  • Houston, TX
  • Irving, TX
  • Mcallen, TX
  • Port Arthur, TX
  • San Antonio, TX
  • St George, UT
  • Arlington, VA
  • Fredericksburg, VA
  • Hardy, VA
  • Harrisonburg, VA
  • Lynchburg, VA
  • Winchester, VA
  • Bennington, VT
  • Williston, VT
  • Charleston, WV
  • Elkins, WV
  • Morgantown, WV
  • Unionville, Canada
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