It’s not often we hear about an expansion from Sprint’s Wireline division, as the company has been run to maintain cash flow rather than revenue and capex has been amongst the lowest in the sector. But yesterday Sprint Nextel (NYSE:S, news, filings) they announced that they have added the Stockton CA, Central and Northern New Jersey, and Baltimore MD markets to their Ethernet footprint, bringing their comprehensive coverage now to 28 markets. Additionally, the company is expanding its presence in 10 of those markets. Sprint’s Ethernet access solution connects from the customer’s premises to the Sprint Global MPLS or DIA networks using an Ethernet local loop.
Lately Sprint’s star has been rising, at least according to analysts and the stock markets. The belief that they have finally turned the corner seems to be growing. An investment in their wireline business may be yet another sign that this surge is the real deal. They sure could use a break over there in Overland KS, the last few years have just been brutal. What with Clearwire growing more rapidly than predicted in Q1, the first WiMAX phone about to hit the streets, and a bit of capex spending in their wireline business – there’s definitely some potential for the remainder of the year.
I wonder though when Sprint will join everyone else at the Ethernet exchanges of CENX and Equinix and others. Seems like a no-brainer for them, a way to more reliably bypass their arch-rivals in the corporate market.
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