At the time of the merger in 2005, Sprint paid a whopping $36 billion for Nextel. Now, just five years later, Sprint Nextel is valued at only $30 billion. In fairness, Big Yellow does seem to be on the up-turn. Customer Service ratings have improved dramatically, the subscriber base is growing again, and the company’s WiMAX network continues to expand.
So, this may be a bit of a downer for Sprint – but it’s not exactly new information for the company’s management or stockholders. Rather, it should serve as a reminder of the company’s past mistakes and a motivator toward the future. Hopefully, a future where Sprint will provide 1Gbps download speeds and continue to offer unlimited data plans.
source: Bloomberg via FierceWireless