Sprint Is Struggling

Aug 25, 2010
12:39 PM Sprint Is Struggling To Get 4G Subscribers, Analyst Says
Posted by Eric Savitz

Sprint (S) is having trouble getting customers to sign up for its 4G wireless service, Aurigia USA analyst Chandan Sarkar contends in a research report.

“As the first carrier to launch 4G service, we had expected strong subscriber growth at Sprint,” he writes. “However, in addition to the well publicized parts shortages on their EVO handset, we believe that the successful deployment of HSPA [high-speed packet access, a technology used to speed up 3G service that uses the WCDMA standard] by competitors (especially AT&T) appears to have limited Sprint’s 4G subscriber growth prospects.”

While HSPA is not as fast as the Clearwire (CLWR) WiMax technology resold by Sprint, he notes that “with no killer applications in sight,” HSPA is close enough in speed to 4G to keep data users happy.

Meanwhile, the analyst also says his checks find that Verizon Wireless (VZ, VOD) is slightly ahead of schedule on its planned roll out of its 4G LTE network.

S is down 7 cents, or 1.7%, to $3.88.