Verizon Wireless has deployed its superfast 4G LTE wireless broadband in most large markets around the U.S. AT&T (NYSE: T) is behind in deployment, but not by much. It should have a footprint similar to Verizon’s later this year. In the meantime, the third-place carrier, Sprint-Nextel (NYSE: S), has barely deployed its LTE network at all. This is another reason that Sprint cannot add new customers and is floundering as its competitors advance.
Sprint’s 4G LTE service, part of its Network Vision rollout, will reach 10 or fewer cities by mid-year. That means it cannot claim it has anything close to national coverage until 2013, at the earliest.
Sprint took a chance with long odds when it tried to take an early lead in 4G with its WiMAX product. Sprint made the critical mistake of adopting of a standard that was never likely to be used by all other major carriers. It now pays for that gamble with its late entry into the market with the widely accepted LTE product.
Sprint has made a long series of missteps, with its LTE rollout only the latest. Also among them was a lack of concentration on customer service, which damaged its reputation for years. The company argues that its merger with Nextel cost its the ability to properly serve customers from both that firm and Sprint. It may be a reasonable excuse, but that has not helped Sprint shareholders or customers. It has, however, helped freeze Sprint’s customer base at about 50 million. AT&T and Verizon Wireless have continued to grow. Sprint cannot play catch-up in a saturated U.S. market in which cell phones outnumber people. Carriers can add customers only by taking them from the competition.
However much Sprint’s customers have suffered, its shareholders have been hurt more by the company’s poor strategic decisions. Over the past five years, its stock is down more than 80%, compared to a 10% drop by AT&T. AT&T’s dividend more than makes up for its share performance shortfall.
Sprint’s late LTE rollout will ensure that it continues to languish in third place, far behind its competition.
Douglas A. McIntyre
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
