Wednesday, November 7, 2007

Sprint Saves Itself: For Now

Sprint (S) took the first step to tuning around its annually depressing subscriber numbers, it will sell Google's (GOOG) Gphone.

It looks like sprint ands T-Mobile (T) will be the first two carriers to handle to new phone. The best part of the phone it that it will not be made by Google. Why is that good? We will be getting phones in all shapes and sizes and price ranges that will carry the software. That means that all types of people are now potential buyers of the product.

For Sprint this means that all it customers are now potential customers and of those that are not, all customers in all demographics could make the switch, not just those who will fork over $599 for the device like when Apple (AAPL) rolled out the iPhone (it now sells for $399).

So, is Sprint a buy? No, not yet. We still need more info. When is the rollout? What is Sprint going to do to fix its customer service issue which are the main reason subscribers have left. If they cannot fix these, any gains they get from the Gphone will be short lived as subscribers will leave for the other carriers that have the phone.

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