Analyst Jeff Kagan on Sprint Nextel and Their Spectrum Shortage Issues

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Tech Analyst Jeff Kagan is available to speak with reporters, or you may quote him through this release.

Jeff KAGAN, Industry Analyst

Tech Analyst Jeff Kagan is available to speak with reporters, or you may quote him through this release.

Sprint Nextel is now going through a new period of enormous change. A Bloomberg News story titled, Sprint CEO Hesse Seeking More Deals as Data Demand Surges is an interesting piece that looks at how Sprint is trying to do wireless data deals and get more spectrum as demand increases.

Wireless Analyst Jeff Kagan offers comment to this news story.

“The wireless industry continues to grow rapidly, but not all companies are growing at the same pace,” says Industry Analyst Jeff Kagan. “Companies like AT&T Mobility and Verizon Wireless are growing rapidly and they are also facing pressures from a changing industry. Companies like Sprint Nextel should be growing as fast and as strong, but just haven’t been in recent years.”

“On one hand, an acquisition by Softbank could help Sprint Nextel start growing once again. On the other hand we just don’t know what changes in strategy and direction to expect if that happens,” suggests Kagan.

The acquisition is not the only thing Sprint Nextel has to be concerned with. They must also be concerned with the same issues as every other wireless competitor. One of those concerns is having enough wireless data spectrum so their customers have a good experience. Another is to update the networks from 3G to 4G for the same reason.

“One of the most important items on every wireless carriers checklist is getting more spectrum. There is a shortage of spectrum. Every wireless carrier uses spectrum as the on and off ramps to the information superhighway. Not enough spectrum and there are traffic jams. That is what every wireless carrier must be aware of. That is what Sprint Nextel needs to be concerned with as well,” says Kagan.

We have always known that Sprint Nextel had plenty of spectrum for the short-term. According to this Bloomberg piece, CEO Dan Hesse is apparently always on the lookout for more spectrum. That is smart because enough spectrum today, won’t last forever. That’s why Sprint Nextel wants to acquire Clearwire, to get their spectrum. Even that is not enough however.

Every wireless carrier has to keep their eyes on multiple balls to keep them all in the air, and the spectrum shortage is on every carriers mind these days.

According to Bloomberg News, CEO Dan Hesse says the company is looking for deals with other companies or through government sales. Sprint has spectrum for today, but tomorrow must be prepared for.

“That’s good to hear, but like water in the desert, everyone is trying to get their hands on the limited supply of spectrum. There will be winners and losers, we just don’t know which companies will be which yet. Every company needs as much spectrum as they can get their hands on. It’s good to see Sprint Nextel heading in the right direction. Whether they are considered winners or losers tomorrow, depends on what they do today with spectrum,” says analyst Jeff Kagan.

About Jeff Kagan

Jeff Kagan is an Industry Analyst who is regularly quoted by the media over the last 25 years.

He offers comment on wireless, telecom and tech news stories to reporters and journalists.

He has also been quoted as a Tech Analyst, Wireless Analyst, Telecom Analyst and Principal Analyst depending on the focus of the story.

He follows wireless, telecom, Internet, cable television and IPTV. He also follows the wider and more general consumer electronics and technology space.

Visit his website: at jeffKAGAN.com to learn more and for disclosures.

Reporters: Jeff Kagan sends comments by email to reporters and the media. If you would like to be added to this email list please send request by email.

Clients: He has worked with many companies over 25 years as consulting clients.

Contact: Jeff Kagan by email at jeff(at)jeffKAGAN(dot)com or by phone at 770-579-5810.

Kagan is an Analyst, Consultant, Columnist and Speaker.

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