Sprint Corporation (S - Free Report) recently announced that three more major markets — New York City, Phoenix, and Kansas City — will experience the nation’s first 5G wireless network in the first half of 2019. In February this year, the leading communication services company had listed Atlanta, Chicago, Dallas, Houston, Los Angeles, and Washington, DC, in its 5G network. It is expected to add more cities to the list soon.
A Wireless Breakthrough
Sprint is set to establish a nationwide 5G program using its mid-band 2.5 GHz spectrum and Massive MIMO technology, which will enable up to 10 times faster mobile data speeds than the current LTE system. The Massive MIMO (Multiple-Input Multiple-Output) 5G technology is a wireless network that allows the transmission and reception of multiple signals simultaneously over the same radio channel. Given the ever-increasing number of enterprises, the major markets of the United States experience high network traffic. This is where Sprint’s 5G program comes in as a very important innovation. The high data speed and improved secure connectivity will help ease traffic, meeting the customer demand for unlimited speed and high bandwidth applications.
Sprint has been continuously emphasizing on improving and upgrading its network and retaining customers. With numerous small-cell solutions like Sprint Magic Box, the company is constantly seeking to improve its network. With its 5G network, the company aims to give customers the experience of using TV of 6K and 8K resolution, and applications like HD Virtual Reality, which requires improved data speed and bandwidth. Sprint has recently been honoured by Light Reading with a Leading Light Award for the “Most Innovative 5G Strategy”.
With such continued efforts, Sprint reported new 55,000 postpaid phone customers and net 170,000 prepaid phone customers in fourth-quarter fiscal 2017. However, in the past three months, the company has experienced some fluctuations. In the period between the end of February and mid-March this year, the company’s return rate was on par with the industry. Its performance has relatively improved since mid-April.
In the past three months, the stock has lost 4.8% compared with a decline of 7.9% for the industry.
Zacks Rank and Stocks to Consider
Sprint currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry space are BlackBerry Limited (BB - Free Report) and TIM Participacoes S.A. (TSU - Free Report) each sporting a Zacks Rank #1 (Strong Buy), and Motorola Solutions, Inc. (MSI - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackBerry has an expected long-term earnings growth rate of 18.6%.
TIM has an expected long-term earnings growth rate of 26.2%.
Motorola has an expected long-term earnings growth rate of 8%.
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