Sprint (S) put out promising news. Along with Clearwire (CLWR) and an investor group with big tech companies like Google (GOOG) and Intel (INTC), the wireless company will build a 4G network based on WiMax.
The new network might give Sprint the jump on Verizon Wireless (VZ)(VOD) and AT&T (T) Wireless 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 St. 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.
Douglas A. McIntyre