The End of Sprint Wireline

It is very likely that Sprint will be selling off their wireline business in the near future to pursue bigger opportunities in wireless. CEO Marcelo Claure has made it clear that Sprint is open to selling. The wireline aspect of the company has taken a big hit over the past year from earnings of $120 million to a cash consumer.

 Sprint’s wireline business has worked hard to improve global reach and enhance MPLS service. These moves have consisted of building facilities and reaching interconnection agreements in over 155 countries. Financially, the wireline has been suffering as revenues in Q3 2014 compared to Q3 2013 took a hit with wireline voice falling from $333 million to $294, and data falling from $57 million to $53 million. Overall, the company suffered an operating loss of $192 million.

 “Our door is always open to talk to someone in regards to that asset.” said Joe Euteneuer, CFO of Sprint. Despite talking about their willingness to make a deal, they did not disclose specific companies.

 Despite their shortcomings, there are still enticing aspects of owning Sprint’s wireline business. One potential buyer could be Level 3 Communication who has been active in wireline acquisitions. CenturyLink and Windstream are other companies that could emerge as a contender. CenturyLink has already purchased Sprint assets in the past through local telephone service Embarq. Meanwhile, Windstream could use the long-distance help to boost themselves internationally and domestically.  The price tag for Sprint’s wireline assets could reach as high as $4 billion.

 Ultimately, Sprint would like to close their gap between among the two powerhouses of AT&T and Verizon by growing their wireless business. The sale of the wireline business would help allocate expenses and generate more funds to dedicate toward wireless opportunities around the globe. Sprint has had a successful run of wireline business dating back to the 1800s; however, this type of move is the recognition of a new era of technology upon us.

  Launch 3 Telecom is a global distributor of wireline equipment. We can provide wireline and legacy equipment used by Sprint to improve their network. Additionally, our crews offer a variety of services such as installation, decommissioning, repair, and spares management. We will successfully meet all your sourcing and end-of-life needs. For more information, contact Launch 3 at 877-878-9134 or email sales@launch3.net.

www.Launch3Telecom.com | sales@launch3.net | 877-878-9134