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View Full Version : Sprint going under?????


tlancaster204
12-01-2008, 08:36 AM
My brother told me the other day he heard that Sprint was going to file bankruptcy. Has anyone else heard this? I cannot find anything about it on the web. :fingers:

Dragonman
12-01-2008, 09:14 AM
Wirelessly posted (Treo 755p: Mozilla/4.0 (compatible; MSIE 6.0; Windows CE; IEMobile 7.11) Sprint MP6950SP)

Don't believe everything you hear.

TheTruckGuy
12-01-2008, 09:16 AM
nah.. i dont think so.. sprint wont go into bankruptcy.. its too lucrative for others big companies not to buy it.. :) but well.. the way market it.. anything can happen.. still i dont think so.. :D

PokerFace23
12-01-2008, 09:37 AM
yes they are. thanks for posting. :D:wavey:

rilharri
12-01-2008, 09:44 AM
Sprint will never go under....

Quill
12-01-2008, 10:25 AM
If this were true there would be a hundred page long thread burning up this section of SU with people freaking out.

Heck, if it were even a widespread rumor there'd be a thread like that, but it's news to me ... there have been talks of buyouts or mergers but not bankruptcy.

Given that Dan Hesse hasn't even been at the helm of Sprint a year yet I would take any such rumors with a grain of salt ... actually a big barrel.

huevosrancheros
12-01-2008, 11:00 AM
If this were true there would be a hundred page long thread burning up this section of SU with people freaking out.

Heck, if it were even a widespread rumor there'd be a thread like that, but it's news to me ... there have been talks of buyouts or mergers but not bankruptcy.

Given that Dan Hesse hasn't even been at the helm of Sprint a year yet I would take any such rumors with a grain of salt ... actually a big barrel.

There actually have been widespread and ongoing rumors about Sprint's solvency. A lot of people are worried about Sprint's debt load, and that's been a major contributor to the buyout rumors.

vicn77
12-01-2008, 11:06 AM
Do they really have that much debt? I'm just wondering, didn't they just sell off their towers not too long ago?

rilharri
12-01-2008, 11:09 AM
Sprints debt is about $5 Billion or less

Verizon debt is $60+++++ Billion

To give some perspective

Sprint has about 67,000 towers, they sold some of the non important ones, they still have all of there equipment on the towers they just don't own the tower it self.

The company is in hard times but they have good cash flow coming and only time will tell...

huevosrancheros
12-01-2008, 11:10 AM
http://www.bloomberg.com/apps/news?pid=20601103&sid=aXu5gpgT1aWE&refer=us

Sprint is in a very bad place right now. I'm not sure why Sprint's solvency crisis isn't getting as much press as the previous takeover rumors. Less interesting to talk about than speculating which European firm will take over, I guess.

Edit: to respond to the above, it's not particularly the amount of the debt, but the long term ability to pay it off. Going red in the books while having no legitimate prospects to turn it around makes people uneasy, to say the least.

vicn77
12-01-2008, 11:13 AM
http://www.bloomberg.com/apps/news?pid=20601103&sid=aXu5gpgT1aWE&refer=us

Sprint is in a very bad place right now. I'm not sure why Sprint's solvency crisis isn't getting as much press as the previous takeover rumors. Less interesting to talk about than speculating which European firm will take over, I guess.

Edit: to respond to the above, it's not particularly the amount of the debt, but the long term ability to pay it off. Going red in the books while having no legitimate prospects to turn it around makes people uneasy, to say the least.

gotcha thanks

goodiemob
12-01-2008, 11:46 AM
with all the freebies they give away,not hard 2 see why the stock is tanking.

Quill
12-01-2008, 12:32 PM
There actually have been widespread and ongoing rumors about Sprint's solvency. A lot of people are worried about Sprint's debt load, and that's been a major contributor to the buyout rumors.

I'm aware of that but I have not heard anything as yet about them actually declaring bankruptcy.

Like I said, if there were any serious rumors about that, there would be a major thread about it on here.

The two choices people seem to fixate on are:
Will Sprint be bought out and if so by whom?
Will Sprint fold?

Bankruptcy certainly is a possibility but there's been no credible rumor that I'm aware of circulating on the Interwebs. Besides, bankruptcy does not mean a business is closing its doors, so just because the word is floated doesn't mean the company is going under. Yet.

We all know Sprint is hemorraghing cash as well as customers. My point is that there is nothing official about a bankruptcy filing, a buyout, a merger or Sprint folding in on itself. Yet.

I'm still in watch and wait mode. I believe that we can't really have any serious discussion about the future of Sprint until Hesse has been in place for a full fiscal year.

In other words, it's still too soon for subscribers to freak out about Sprint, but I think the shareholders and board are likely quite unhappy.

MsRandall
12-01-2008, 01:00 PM
In this economy 95% of all companies are going under...sadly

Pyramid-3
12-01-2008, 01:31 PM
Sprint closed the deal on purchasing Clearwire today.

huevosrancheros
12-01-2008, 01:35 PM
The two choices people seem to fixate on are:
Will Sprint be bought out and if so by whom?
Will Sprint fold?


I think investors are mostly speculating on one of the following scenarios:
1. Sprint survives as is and reachieves profitability
2. Sprint defaults and seeks shelter from creditors to reorganize
3. Sprint is bought out
4. A combination of 2 and 3.

I don't think anyone genuinely thinks that Sprint will just fold (I'm assuming by fold, you mean completely shutter it's doors and liquidate everything). It's still a large company with a large customer base and a significant amount of capital assets and infrastructure. The real question is whether or not Sprint can avoid bankruptcy while remaining independent. I think the bankruptcy discussion has always been at the core of any recent discussion with Sprint.

In this economy 95% of all companies are going under...sadly

A lot of companies are hurting, but the only ones who have a legitimate risk of "going under" are those with extremely high exposure to questionable CDOs (read: former I Banks and their supporting industry), and archaic, poorly-run companies who haven't been competitive for decades (GM, Ford, airlines, etc.) Companies with sustainable business models can and most certainly will survive, and fortunately, they significantly outnumber the corporate dinosaurs that should have collapsed long ago.

Quill
12-01-2008, 01:45 PM
I agree, I don't think anyone seriously believes Sprint will cease to be (i.e. fold, as I put it earlier) but there are a fair number of folks who have posted in similar threads in the past six months who fear that on some level, and for all the reasons you pointed out in your post huevosrancheros. :)

Bankruptcy has been discussed (it's always an option, right?) but I don't recall seeing any rumors that is the path Sprint is headed down compared to say the ones like SK Telecom or DT were looking at buying Sprint out. Especially not recently that supports the original question posed by the starter of the thread.

Something's going to have to change for Sprint one way or another and like I have since I left Sprint (Dec. 15, 2004, the day the merger was announced I believe) I have been watching and waiting to see how things would play out.

laurkar2006
12-01-2008, 01:51 PM
I have heard for some stores closing but not SPRINT itself.

huevosrancheros
12-01-2008, 01:54 PM
I agree, I don't think anyone seriously believes Sprint will cease to be (i.e. fold, as I put it earlier) but there are a fair number of folks who have posted in similar threads in the past six months who fear that on some level, and for all the reasons you pointed out in your post huevosrancheros. :)

Bankruptcy has been discussed (it's always an option, right?) but I don't recall seeing any rumors that is the path Sprint is headed down compared to say the ones like SK Telecom or DT were looking at buying Sprint out. Especially not recently that supports the original question posed by the starter of the thread.

Something's going to have to change for Sprint one way or another and like I have since I left Sprint (Dec. 15, 2004, the day the merger was announced I believe) I have been watching and waiting to see how things would play out.

I agree completely. The bankruptcy option is largely treated as a end-game type scenario; take-over will almost certainly happen before Sprint defaults. What I meant is that looming threats of unprofitability and bankruptcy are always one of the major opposing forces that drive take-over rumors for a failing company.

In any case, it seems almost impossible that Sprint will just suddenly cease to exist, either as "Sprint" or as a part of something larger, so none of this should really matter to any Sprint customers unless they also have some kind of material stake in the company.

Best case: your bill continues to say "Sprint" on the upper left corner.
Secondary case: your bill says "Company B" on the upper left corner.
Armageddon worst case: Sprint implodes and you port your number somewhere else. Net effort required: 30 seconds.

nohbdyshero
12-01-2008, 02:03 PM
Keep in mind that Sprint's customers and towers are a huge asset! Someone will come in at the right price and snap them up. I suppose bankruptcy is an option but I would think Chapter 11 not 7 would be the case. That would allow them to keep operating and reorganize and come out better.

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laurkar2006
12-01-2008, 03:29 PM
Keep in mind that Sprint's customers and towers are a huge asset! Someone will come in at the right price and snap them up. I suppose bankruptcy is an option but I would think Chapter 11 not 7 would be the case. That would allow them to keep operating and reorganize and come out better.

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That sounds more like it if it is even true, I think all the cell providers are having trouble, it is not just sprint.

huevosrancheros
12-01-2008, 03:42 PM
That sounds more like it if it is even true, I think all the cell providers are having trouble, it is not just sprint.

ATT and VZ are weathering the financial storm extremely well, more or less by taking customers directly away from Sprint. Sprint is virtually circling the drain. ATT and VZ are leading their segment.

tbakergobuck
12-01-2008, 03:59 PM
If Sprint goes under someday I will be a little upset since I will have to pay more money. I don't worry about it since I can pick up any other carrier.

laurkar2006
12-01-2008, 04:07 PM
Sure there are more carriers out there but not with plans like sprint.

tbakergobuck
12-01-2008, 05:06 PM
Sure there are more carriers out there but not with plans like sprint.That's why I haven't left Sprint since 1999. I guess I should have said that in my last post.

The SPCS Guy
12-02-2008, 06:28 AM
I think thid is the way most people feel. Without their plans, then they would have left.

I don't think Sprint will go under, but they know the time has come to sink or swim.
This company has been around for a very long time...run now by incompetents...but who knowswhat will happen.

Never belive everything you hear unless you can verify it yourself from a credible source (Reuters, Yahoo, Bloomberg, WSJ, CNN, MSNBC). The brother heard wrong!

JE

nathanielmark
12-02-2008, 07:59 AM
Sprint should capitalize on the economic crisis and differentiate itself purely on price.. set plans way below the competition and unleash a marketing campaign... the 99$ everything plan does not appeal to the average american family.... now throw in 2 extra lines and its a different story... sprint should use the crisis as an opportunity... they should define themselves as the wal-mart of wireless providers

Dan
12-02-2008, 11:26 AM
Sprint should capitalize on the economic crisis and differentiate itself purely on price.. set plans way below the competition and unleash a marketing campaign... the 99$ everything plan does not appeal to the average american family.... now throw in 2 extra lines and its a different story... sprint should use the crisis as an opportunity... they should define themselves as the wal-mart of wireless providers

Why should sprint drop itself to cricket pricing? Actually, lower than cricket pricing!

People dont like walmart because they never have enough of what they have on sale, they never have enough registers open, etc. Give 3 unlimited lines for $99 and you would have people over-using the towers causing the inability to complete calls at certain times. CS would be overloaded also from people calling in that cant pay their bill, and profitability would drop far lower than it is now.

Sprint needs to offer perhaps a few area wide plans in areas where extra capacity exists and offer unlimited there for say $60 for everything. But, to drop to $33 a line on a 3 line plan and have it nationwide would not be intelligent at all.

clokez
12-02-2008, 02:37 PM
Sprint closed the deal on purchasing Clearwire today.

There's a difference between "Merging" and "Purchasing"...

laurkar2006
12-02-2008, 02:52 PM
one is buying and one is getting together...

Pyramid-3
12-02-2008, 03:47 PM
I would like to see rollover on my shared minute plan. I have 2190 minutes per month. 5 lines and rarely use more than 1350. But were I to jigger the plan I would have to step down to 1500. There's a big gap today - you get 1500 or 3000 with nothing in the middle. And 1500 doesn't give me enough of a cushion. So to me, the biggest value add would be if Sprint did rollover. Then I would step down to 1500 and bank the extra.

Clearly though Sprint wants to shove me into 5 unlimited plans. That is simply not a rational nor affordable act.

The other thing that I would suggest to Sprint is to figure out some way on God's Gray Earth to manage shared plans better. Today I have 5 different termination dates for example. And from a billing perspective the cost per line varies from $3 to $111 based on how they split the bill. So let's say I drop one of those five lines. My bill drops by as little as $3. Which is really not worth it. Moreover just making changes to any of the other 4 lines is torture. They always screw it up and I'm the only one on the account who can ask for it. Which is nuts. Moreover I can NEVER drop the primary line w/o abandoning the other 4. At least that's what 4 different sales reps told me.

So all in all Sprint is pretty hostile and inflexible to shared plans which is just going to drive us all away. That might be their plan. Good luck with that, Dan.

nathanielmark
12-03-2008, 07:51 AM
Why should sprint drop itself to cricket pricing? Actually, lower than cricket pricing!

People dont like walmart because they never have enough of what they have on sale, they never have enough registers open, etc. Give 3 unlimited lines for $99 and you would have people over-using the towers causing the inability to complete calls at certain times. CS would be overloaded also from people calling in that cant pay their bill, and profitability would drop far lower than it is now.

Sprint needs to offer perhaps a few area wide plans in areas where extra capacity exists and offer unlimited there for say $60 for everything. But, to drop to $33 a line on a 3 line plan and have it nationwide would not be intelligent at all.


well, you may not like wal-mart, but enough people do that they make money even when times are tough... i did not mean sprint should actually sell a 3 line/99$ everything plan, i was trying to say they need to move in that direction to draw people away from ATT and verizon. the $99 everything plan appeals to a very small # of potential customers..

my main point was that sprint needs to differentiate itself to get a competitive advantage. that is simple business 101. right now, they are differentiated solely on the public perception of poor service..

i agree that they don't need to be giving plans to people who cannot afford them. but i thought they already had a system in place for that (pre-paid plans/credit checks, etc)...

the price advantage would be the means to reverse the flow of customers to ATT/Verizon, etc..

I know nothing about the specifics of sprints infrastructure capacity, but i would really like to think they have plenty of excess with all the customers they have lost...

in any case, sprint can improve service all it wants (and that is obviously a necessary change to make), but that will probably not be enough to get people to switch from competitors.

 
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