Meanwhile, T-Mobile operating chief Mike Sievert remained confident of the deal to wrap up quickly. A settlement with the suing is never off the table despite the wrap of testimony in the trial of several states vs. Sprint/T-Mobile. If the deal is not completed, it is expected that Sprint will not be able to deploy a nationwide 5G network on the same scale and on the same timeline as the combined company.
While the company launched 5G in select cities in the first half of 2019 and Sprint plans to continue to invest in its network during the next few years, many of the underlying service quality, scale, and financial challenges remain. The company aims to use its spectrum to build its 5G network on the 2.5 GHz spectrum.
Since mid-2013, the company has experienced net losses in postpaid handset subscribers. The trends improved from the quarter ended September 30, 2015, after the release of price plans associated with device financing options. However, since the quarter ended September 30, 2018, through the current quarter, the company incurred net losses in the postpaid handset subscribers.
Read: AT&T Q3 earnings review
Analysts expect the company to post a loss of $0.05 per share on revenue of $8.21 billion for the third quarter. In comparison, during the previous year quarter, Sprint reported a loss of $0.03 per share on revenue of $8.6 billion. The company has missed analysts’ expectations thrice in the past four quarters. The majority of the analysts recommended a “hold” rating with an average price target of $6.27.
For the second quarter, Sprint reported a loss compared to a profit last year due to an 8% decline in revenues. Total wireless service revenue declined 7% due to lower Lifeline revenue and the continued amortization of prepaid contract balances. Postpaid wireless service revenue was relatively flat as the company works to stabilize postpaid ARPA and average postpaid accounts.