Softbank announced today that it has acquired a majority stake in Sprint. What does the infusion of money do for Sprint and how does it affect the telecommunications market?
Forrester Principal Analyst Charles Golvin calls it a “gutsy move” and lauds Sprint as a “market disruptor” — but adds that the only way the company can truly compete is by considering another move:
“For Sprint to have any realistic chance of wresting market share from the Verizon and AT&T behemoths, it requires additional spectrum to expand its LTE capacity beyond the puny 5×5 MHz of its current plan. And there’s a carrier rich in that spectrum resource: Clearwire. . . . If Softbank’s president Masayoshi Son is serious about enabling Sprint to disrupt the US mobile market, he needs to add control of Clearwire to his shopping list.”
Read more of Golvin’s blog post here.