Sprint Nextel CorporationS

The market has focused on Sprint Nextel's recent troubles rather than the assets it holds. It will take time, but the firm has the resources to regain its footing.

Following a wave of consolidation, Sprint is one of three companies that now dominate the U.S. wireless industry. These firms have far greater resources than smaller rivals.

Sprint Nextel is the only one of the big three wireless carriers not affiliated with a major local phone company. This independence will make it the partner of choice for cable companies and others looking to offer wireless services to their customers. Read more 

As Sprint shrinks, it has to scramble to cut costs, causing disruption at the firm. The decision to outsource network operations to Ericsson ERIC, for example, could prove difficult to manage relative to any cost savings achieved.

Combining Sprint and Nextel has proved far more difficult than had been the case with other recent wireless mergers, and full integration, if it ever happens, is still years away. Rather than simplifying things, the firm has taken on yet another complication in its venture with Clearwire.

While Sprint has struggled, Verizon Wireless and AT&T Mobility have benefited at its expense. Even T-Mobile has added far more customers recently. Regaining momentum lost to these competitors will be difficult.

Sprint has horribly mismanaged the Nextel base of high-spending business customers. Because of network and other problems, the old Nextel customer base, which had been growing rapidly, has dwindled since the merger. Read more