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But it’s not all good news for the wireless company.

Two weeks ago, Sprint Nextel (NYSE: S, Stock Forum) put out promising news. Along with Clearwire (NASDAQ: CLWR, Stock Forum) and an investor group with big tech companies like Google (NASDAQ: GOOG, Stock Forum) and Intel (NASDAQ: INTC, Stock Forum), the wireless company will build a 4G network based on WiMax.

The new network might give Sprint the jump on Verizon Wireless (NYSE: VZ, Stock Forum), Vodafone (NYSE: VOD, Stock Forum), and AT&T (NYSE: ATT, Stock Forum) in the race for super-fast wireless service. Sprint shares rose from $5.63 in mid-March to $9.40 last week.

It has begun to dawn on Wall Street that Sprint still has significant problems. AT&T and Verizon are rushing to get up 4G systems of their own. Sprint may end up with little or no time without competition in the market.

Perhaps worse, Sprint's customer service is considered the worst in the wireless industry. Having new and attractive technology will not solve that problem. It can only be remedied from inside and, so far, the company has had no success.

Sprint's shares are back at $8.28, and that may not be the near-term bottom. The firm is out of good news.

 

ABOUT THE AUTHOR
From the news desk of 24/7 Wall St.

This report was prepared by 24/7 Wall St., LLC exclusively for Stockhouse. 

 
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Comments
Sprint assets are (conservatively) worth $12-14 share based on comparable analysis of other wireless co's and their longhaul assets. The Deutsche Telekom merger specualtion is only one scenario. America Movil, or specifically Carlos Slim Helu, could be another suitor looking to enter the US market. Operationally, Hesse is one of the better execs in the business. Churn s improving, data revenues are up, and the company has course-corrected faster than any of the other battleships in the industry. If there's any credibility in the post about overcharging (above), then investors should scrutinize the thousands of customers that have been bilked by AT&T with their "Unlimited" iPhone and data plans.
Sprint overcharged my small (US) company for over $50,000.00. We caught them doing it and now they refuse to refund the over-payments. You can read the full story at http://www.sprint-really-sucks.com I also wrote an open letter to Dan Hesse the Chairman and CEO of Sprint Nextel. It is a good read so please consider reading the letter. http://www.sprint-really-sucks.com/open-letter-dan-hesse.aspx
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