Posts Tagged ‘debt refinancing’
iPhone and LTE upgrade costs put Sprint in need of $7 Billion.
Last Updated on Thursday, 27 October 2011 11:57 Written by LoganDX Friday, 28 October 2011 11:00
The deal with Apple to start shilling the iPhone is costing Sprint $15.5 billion and adding to the money woes is the cost of upgrading to LTE by next year. These two factors may push House Hesse into finding another $7 billion in financing to keep itself liquid. Specifically the carrier will try to acquire $4 billion in refinanced debt and try to squeeze the other $3 billion from its various vendor deals.
Sprint is paying a 40% higher subsidy per iPhone than it does for other devices and the deal allows the carrier to pay over the next four years. The massive launch weekend sales gave Sprint its best sales ever, helping soothe the hit to the Now Network’s wallet. With the iPhone firmly entrenched there, one has to wonder how long before Sprint will completely ravage the perks that made them a draw to customers tried of the AT&T and Verizon bilking?