Sprint's 3 divisions are expected to make $33.3 billion for Fiscal 2020 (Year Ending March 2020)
(1) Service Revenues $22.5 billion (68%)
(2) Equipment Sales $5.7 billion (17%), and
(3) Equipment Rentals $5.1 billion (15%)
Sprint's Business Model
What Need Does It Serve?
Wireless Markets: It provides services on a postpaid and prepaid payment basis to retail subscribers, which includes the sale of wireless services that utilize the Sprint network.
Wireline Markets: It provides wireline services to other communications companies and targeted business customers.
Has 3 Operating Segments-
1. Services: Revenue is generated from postpaid and prepaid subscribers depending on the type of service utilized by them, which includes fixed monthly recurring charges, variable usage charges, and miscellaneous fees such as activation fees and roaming.
2. Equipment Sales: Devices are sold to customers through installment billing and subsidy programs.
3. Equipment Rentals: Qualified subscribers can lease a device for a contractual period of time. At the end of the lease term, subscribers have the option to return the device, continue leasing the device, or purchase the device.
What Are The Alternatives?
Wireless Carriers: AT&T, Verizon Wireless, and T-Mobile, and regional carriers such as U.S. Cellular and C-Spire.
Technology Companies: Microsoft, Google, Apple.
Cable Companies: Comcast's Xfinity Mobile and Charter's Spectrum Mobile.
What Is The Basis of Competition?
Competition is based on wireless plans that include voice calls, spectrum resources, wireless content distribution, and broadband services.
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1. How to save your forecasts:
Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
With your forecast saved and named, you can see how well you forecast the company's performance at the end of each period and compare your forecasts to hundreds of other Trefis users who came up with their own forecasts. Lastly, you can share with friends and colleagues to show them how you fared and compare your forecasts to theirs.