3 Telecom Stocks Seeing Action: Sprint Closes Clearwire Deal, T-Mobile Rolls Out Jump, and Verizon Tests Voice Link
Sprint (NYSE:S): RW Baird points out that Sprint closed its acquisition of Clearwire (NASDAQ:CLWR) and SoftBank is expected to close its investment in Sprint on Wednesday, adding that Sprint will possess more total spectrum than any other company in the U.S. It remains unclear what Softbank will do to improve Sprint’s subscriber growth and profitability. It keeps a Netural rating and $7 price target on the shares.
T-Mobile USA (NYSE:TMUS): T-Mobile has revealed its rumored Jump upgrade plan: For $10 per month, customers can trade in their phones up to twice a year for the same price paid by new customers, or less. Additionally, T-Mobile is launching a family plan for the one-third or so of U.S. customers whose credit isn’t strong enough for a regular postpaid plan. Further, thecarrier will offer Sony’s Xperia Z and Nokia’s Lumia 925, as expected.
Verizon (NYSE:VZ): Fire Island in New York is providing Verizon with the means to test a wireless alternative to landlines called Voice Link. Superstorm Sandy destroyed much of the copper wiring on Fire Island and instead of replacing it, Verizon has decided to take advantage of the opportunity to try Voice Link and make improvements before a national rollout, pending federal approval.