Articles for Sprint Nextel

Tablet PCs Could Yield 11% Upside for AT&T Stock

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Tuesday, September 7th, 2010 by Trefis Team

As tablet PC usage rises, U.S. telecom giant AT&T (NYSE:T) could see a sharp rise in its revenues from wireless data customers. AT&T competes mainly with Verizon (NYSE:VZ) and Sprint Nextel (NYSE:S) in the U.S. wireless market.

We see a potential upside of nearly 11 % to our $37.91 stock price estimate for AT&T if the company’s average revenue per user (ARPU) of mobile data reaches $40 a month by the end of our forecast period, rather than the $28 a month that we currently forecast. Our analysis follows below. … To read the full article Subscribe to Trefis Pro

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Wireless Infrastructure Business Could Lift Nokia Stock by 5%

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Tuesday, August 31st, 2010 by Trefis Team

Nokia (NYSE:NOK) recently purchased most of Motorola’s (NYSE:MOT) wireless network infrastructure division for $1.2 billion in cash. This transaction is expected to close by the end of 2010.

The deal should help Nokia gain business from existing Motorola customers like Sprint Nextel (NYSE:S) in the U.S. and KDDI in Japan.It also raises Nokia’s profile in the gigantic U.S. telecom market, which could help it sell more mobile phones to U.S. customers. Our analysis follows below.

Nexus One Smartphone Less Than 1% of Google’s Stock

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Thursday, August 26th, 2010 by Trefis Team

Google (NASDAQ:GOOG) recently stopped selling Nexus One smartphones through its U.S. online store. In the smartphone market, Google competes primarily with Apple (NASDAQ:AAPL), Research in Motion (NASDAQ:RIMM) and Motorola (NYSE:MOT).

Google launched the Nexus One to great fanfare last January. Going forward, Nexus One phones will still be available in U.S. retail stores and internationally through partners like Vodafone.

We expect Google to sell only around one million Nexus Ones worldwide in 2010. This implies that the smartphone business now constitutes less than 1% of the $683 Trefis price estimate for Google’s stock. Our analysis follows below. … To read the full article Subscribe to Trefis Pro

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Higher CDMA Wireless Share Could Boost Sprint’s Stock

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Thursday, August 26th, 2010 by Trefis Team

Sprint’s (NYSE:S) stock could benefit significantly from higher CDMA wireless market share. Trefis members have created forecasts for two key drivers of Sprint Nextel’s stock over the last week: (1) Sprint CDMA’s wireless market share and (2) Sprint Mobile Subscriber Plan Pricing. We currently have a Trefis price estimate of $4.79 for Sprint Nextel’s stock, about 14% above the current market price of $4.19.

The member forecasts suggest that Sprint CDMA’s wireless market share will trend above the estimates of the in-house team of analysts at Trefis, while Sprint Mobile Subscriber Plan Pricing will roughly trend in-line. These projections indicate a combined upside of around 14% for Sprint’s stock. Sprint competes with AT&T (NYSE:T), Verizon (NYSE:VZ), Comcast (NASDAQ:CMCSA), and Time Warner Cable (NYSE:TWC) in mobile plans and phones business.

Sprint Nextel’s stock is quite sensitive to (1) Sprint CDMA’s wireless market share and (2) Sprint Mobile Subscriber Plan Pricing. Below are charts showing recent estimates created by Trefis members for the two drivers in detail.

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AT&T’s Future Depends on Mobile Data

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Wednesday, August 25th, 2010 by Trefis Team

The average revenue per user (ARPU) for AT&T’s (NYSE:T) mobile data (SMS, internet, games) is expected to increase over the coming years, while AT&T’s average revenue per user for mobile voice services is projected to decline gradually.

Trefis members have created forecasts for two key drivers of AT&T’s stock over the last week: (1) SMS & Internet Revenue per AT&T Mobile Subscriber and (2) Mobile Subscriber Plan Pricing. The member forecasts suggest that both drivers will trend in-line with the estimates of the in-house team of analysts at Trefis.

AT&T competes with other mobile service providers Sprint Nextel (NYSE:S) and Verizon (NYSE:VZ) as well as VOIP providers Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC). We currently have a Trefis price estimate of $38 for AT&T’s stock, about 44% above the current market price of around $27.

AT&T’s stock is quite sensitive to (1) SMS & Internet Revenue per AT&T Mobile Subscriber and (2) Mobile Subscriber Plan Pricing. Below are charts showing recent estimates created by Trefis members for the two drivers in detail.

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New Smartphones Boost Verizon’s Wireless Business

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Tuesday, August 24th, 2010 by Trefis Team

Verizon (NYSE:VZ) is benefiting from popular new smartphones like the HTC Incredible, which it launched last quarter. Verizon, which competes with AT&T (NYSE:T) and Sprint (NYSE:S) in the telecom market, recently announced that it added 665,000 new postpaid retail subscribers on a net basis in the second quarter of 2010, up from 423,000 net new customers in the first quarter.

We expect Verizon’s wireless business to receive an additional boost from the July launch of the Motorola Droid X. Our analysis follows below.

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Possible 5% Upside for Sprint Stock on Prepaid Subscriber Gains

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Tuesday, August 24th, 2010 by Trefis Team

U.S. wireless giant Sprint (NYSE:S) is aggressively pursuing prepaid customers, a market where it competes mainly with AT&T (NYSE:T) and Verizon (NYSE:VZ).

Sprint moved to strengthen its prepaid business by acquiring Virgin Mobile late last year. Most recently, Sprint has introduced several new prepaid plans at unusually low price points. While this move will likely reduce the company’s average revenue per user (ARPU), an important metric in the telecom business, it could also help Sprint gain share in the U.S. wireless market.

This scenario suggests a potential upside of 4-5% to our current $4.79 stock price estimate for Sprint. Our analysis follows below. … To read the full article Subscribe to Trefis Pro

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Trefis Members Predict Small Rise in Verizon’s Mobile Market Share

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Wednesday, August 18th, 2010 by Trefis Team

Trefis members have created forecasts for two key drivers of Verizon’s stock (NYSE:VZ) over the last week: (1) Verizon Share of Monthly Mobile Subscribers and (2) Mobile Subscriber Plan Pricing. These forecasts suggest that both drivers will trend roughly in line with the estimates of the in-house team of analysts at Trefis. These projections have no significant impact on Verizon’s stock.

Verizon competes with AT&T (NYSE:T) and Sprint Nextel (NYSE:S) in the mobile subscription plans business. We currently have a Trefis price estimate of around $33.14 for Verizon’s stock, about 10% above the current market price of around $30.

Around 48% of Verizon’s stock value can be attributed to its mobile plans and phones business. The stock is quite sensitive to (1) Verizon Share of Monthly Mobile Subscribers and (2) Mobile Subscriber Plan Pricing. Below are charts showing recent estimates created by Trefis members for the two drivers in detail.

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Cost Cuts Should Boost Verizon

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Monday, August 16th, 2010 by Trefis Team

Verizon (NYSE:VZ) boosted profits last quarter by cutting costs while maintaining revenue growth. Verizon competes primarily with AT&T (NYSE:T) and Sprint Nextel (NYSE:S) in the U.S. wireless telecom market.

The company’s second-quarter earnings report noted that its cost structure had benefited from workforce reductions and declining capital expenditures as Verizon completes its 4G LTE network upgrade.

Based in part on this news, we have raised the Trefis price estimate for Verizon’s stock from $33.14 to $33.90. Our analysis follows below.

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Happier Customers, Hotter Phones Help Sprint

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Tuesday, August 3rd, 2010 by Trefis Team

Life is getting better for Sprint Nextel (NYSE:S) a U.S. wireless provider that competes primarily with AT&T (NYSE:T) and Verizon (NYSE:VZ). After years of subscriber flight resulting from shoddy service and a lackluster product line, Sprint nabbed two prestigious customer service awards recently and has released hit phones like the HTC EVO.

In Sprint’s generally positive earnings report for the second quarter of 2010, management pointed to rapid customer growth and rising average monthly revenue per user (ARPU). Based on these trends, we have raised the Trefis price estimate for Sprint’s stock from $4.49 to $4.79. Our analysis follows below.

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