As pointed out by Jennifer Fritzsche, senior analyst at Wells Fargo, Sprint’s wireless spectrum assets should allow the carrier to achieve more efficiency in its operations, while at the same time, allow it to continue improving the quality of its network. This point of view, however, is not shared by Wall Street, which believes that Sprint has significantly underspent on its network, and will need to really boost its cap-x if a merger with T-Mobile does not materialize.
Fritzsche then went on to cite information from third party network monitoring companies such as RootMetrics and JD Powers. She pointed out that based on data from RootMetrics’ report for the second half of 2016, Sprint garnered 246 metro awards, which is 80 more than it managed in the first half of 2016. The major wireless carrier also saw improvement in terms of call and text by receiving 34 state-level awards in 2H16, which is three times more than what it took during the previous six-month period.
Fritzsche further wrote that the “depth and simplicity” of Sprint’s wireless spectrum holdings allows it to reduce its capital spending compared to other carriers. She explains: “2.5GHz should be considered the low band spectrum in a 5G world. In fact, just last week 3GPP selected Band 41 (2.5GHz spectrum band class) to be in work item for sub- 6Ghz 5G which should allow it to play a meaningful role in the 5G ecosystem. Recall, Sprint is the only carrier in the US to hold this spectrum. Through its deep 2.5GHz spectrum holdings, Sprint should see greater benefits from both carrier aggregation and Massive MIMO (Massive Input Massive Output) rollouts.”