Sprint Corp. continued its show of desperation this week, posting another steep drop in postpaid wireless subscribers and highlighting the challenges it faces as it tries to compete with better-positioned carriers.
As Sprint’s pending merger with T-Mobile US Inc. TMUS, +1.86% faces regulatory review—and potentially more opposition than previously anticipated—the company has stepped up its efforts to paint itself as being in dire need of a more high-tech partner. The idea is to convey to regulators that the deal is about saving Sprint, not creating consolidation in the wireless industry that would give carriers more pricing power.
Added Kvaal: “Given repeated references to the challenges the business is under, we would imagine Sprint is planning for its postpaid subscriber base to continue to decline.”Cowen & Co. analyst Colby Synesael picked up on management’s assertion that if the merger were to be blocked, the company would have to reposition itself to become less focused on national wireless coverage.