Sprint’s Shares Fall on News It Lacks Money for Upgrades

The New York Times (Oct 7 2011) Networking

1. The struggling wireless carrier Sprint Nextel said Friday that it would need to raise additional money to build a higher-speed data network, a move that sent its stock down 20 percent. Sprint also said it would stop selling phones and other devices compatible with Clearwire’s current network at the end of next year, after it switches on its own higher-speed, fourth-generation data network. Shares of Clearwire fell 32 percent after Sprint disclosed details of its new network. Sprint is Clearwire’s largest customer and majority owner, but does not control it. On Tuesday, Sprint’s stock was buoyed by the news that it would carry the new iPhone 4S as investors hoped that the phone would help the company recruit and keep customers. AT&T and Verizon Wireless have been able to lure people with the iPhone, which Sprint was not able to offer until now. Sprint started taking ... (Read Full Article)

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