recommended reading

The Sprint sale will let it build more 4G LTE service

Softbank Corp. President Masayoshi Son, left, and Sprint Nextel Corp. Chief Executive Dan Hesse shake hands.

Softbank Corp. President Masayoshi Son, left, and Sprint Nextel Corp. Chief Executive Dan Hesse shake hands. // Koji Sasahara/AP

Most of the $20.1 billion the Softbank paid to buy a 70 percent stake in Sprint will go to shareholders, but a least a little bit of it will get invested in the company's 4G LTE network. The $8 billion that will go Sprint's balance sheet, will go, at least in part to Sprint expanding its spectrum, enhancing its now limited LTE network, "people familiar with the matter" told CNBC's David Faber.  Sprint doesn't have as much data coverage on its 4G LTE network as its competitors Verizon and AT&T, as we explained when the 4G LTE compatible iPhone 5 came out. In an attempt to catch up, right before the iPhone 5 announcement the carrier announced 100 new cities would get 4G in "coming months." Verizon, by comparison, has over 300 LTE capable cities.

Sprint's LTE issues are more than geographical, it also has a smaller channel over which to operate, asThe Wall Street Journal's Miriam Gottfried explained. Meaning, even in the markets it covers, it doesn't have as much bandwidth with which to support users, so it has the potential to get overloaded more easily. This sale could help Sprint expand that channel via consolidation of other smaller wireless carriers, like Clearwire, which owns a "large chunk of spectrum, according to Deal Journal's David Benoit, allowing it to get more much needed spectrum. 

Read more at The Atlantic Wire

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats


Close [ x ] More from Nextgov

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Modernizing IT for Mission Success

    Surveying Federal and Defense Leaders on Priorities and Challenges at the Tactical Edge

  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

  • Effective Ransomware Response

    This whitepaper provides an overview and understanding of ransomware and how to successfully combat it.

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.


When you download a report, your information may be shared with the underwriters of that document.