…Well, sort of.
As this cribbed WSJ report reveals, Sprint’s got an Everest-sized challenge in making money after its deal to sell Apple’s iPhone:
“The carrier said its deal with Apple Inc. will cost it at least $15.5 billion over four years, meaning it likely won’t turn a profit on the device before 2015…Sprint said it faces a cash shortfall of up to $2.2 billion next year and $5.2 billion in 2013 as it buys millions of iPhones and spends about $5 billion to upgrade its network to a fourth-generation standard similar to that used by rivals AT&T Inc and Verizon Wireless…”
Quite simply, the suit to stop the AT&T / T-Mobile merger has never been anything other than an attempt to stop increased competition (as I have written previously here). Yep, you read it correctly.
Most people think increased competition actually benefits consumers. For “competitors” like Sprint, however, it cuts into their profits. And at $2.58 per share, they need all the help they can get.
Sad, however, that the DoJ – which is also trying to stop the AT&T merger – seems bent on giving it to them.