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Softbank acquires 70% of Sprint for $20.1 billion: facts and repercussions

By Victor Hristov

Published: Oct 15, 2012, 9:22 AM

Sprint

Sprint is saved. Japanese carrier Softbank is spending $20.1 billion and takes over 70% of the U.S. third-largest carrier with over 56 million subscribers. It is the world’s third-largest by post-paid subscriber count, after Verizon and AT&T, of course.

So what does it mean? First, analysts wondering whether Sprint will go bankrupt or not can finally calm down - it’s not. The carrier has been undergoing a tough transition under chief executive Dan Hesse, but a much needed one where Nextel customers are getting migrated and costs are being cut where they have to be.

This of course costs a lot of money. Sprint has made two large investments. One is the iPhone which it didn’t have until 2011, a $15 billion investment that will start paying off only in 2014. The second one is 4G LTE, after 4G WiMAX failed to become the 4G technology of the future.

source: Softbank

What does the $20.1 billion Sprint SoftBank deal do: facts and repercussions

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Victor, a seasoned mobile technology expert, has spent over a decade at PhoneArena, exploring the depths of mobile photography and reviewing hundreds of smartphones across Android and iOS ecosystems. His passion for technology, coupled with his extensive knowledge of smartphone cameras and battery life, has positioned him as a leading voice in the mobile tech industry.

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