Sprint’s M2M Spreads Across the Globe
Sprint (NYSE:S) announced its partnership with Orange Business Services, the enterprise arm of France Telecom-Orange, to provide global machine-to-machine (M2M) connectivity outside the U.S., giving Sprint’s M2M product a footprint across 180 countries.
According to forecasts by ABI Research, M2M connections outside the U.S. could exceed 106 million connections by 2012, and further grow to 272 million connections by 2016. Sprint is likely eyeing this growth and expects its M2M market to embrace automotive, telematics, smartgrid and metering, healthcare, retail POS and security segments.
The partnership is likely to offer customers benefits such as economies of scale, faster project implementation, an integrated supply chain, secure and reliable configurations, M2M-specific SIM cards supported by an excellent web portal and a single, dedicated entity managing the connectivity operations.
Yijing Brentano, Sprint’s vice president of international wholesale, said, “Thanks to Orange’s extensive and proven global network, we will provide our customers with seamless, global M2M solutions with the highest standard in quality of service.”
Rodolphe Fruges, vice president, Internet of Things and M2M — France Telecom-Orange said, “The choice of Orange by Sprint, a major telecommunications carrier, is a great recognition of our unmatched M2M quality of service and global footprint. We look forward to extending this to Sprint’s enterprise customers as they deploy connected applications that require global and carrier-grade M2M solutions.”
Sprint Channel Checks
Yesterday, FBR’s channel checks indicate Sprint’s solid execution continues and the firm reiterates an Outperform rating on the stock ahead of the company’s Q4 results on February 8. FBR believes Sprint is on track to exceed consensus expectations in FY12.
Here’s how shares of Sprint are reacting to the news:
Sprint Nextel Corp. (NYSE:S): S shares recently traded at $2.47, up $0.01, or 0.41%. They have traded in a 52-week range of $2.10 to $6.45. Volume today was 34,624,352 shares versus a 3-month average volume of 35,934,500 shares. The company’s trailing earnings are $-0.84 per share.
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