Sprint-Clearwire Deal Has an Alternative and 2 Telecom Stocks Seeing Action
AT&T (NYSE:T): Current price $37.89
Facebook (NASDAQ:FB) has said that AT&T and France Telecom (NYSE:FTE) are the first two carriers take part in its Facebook Home partnership program, through which to develop devices with the social networks’ new integrated user experience, which will debut with the HTC First. AT&T will be offering it as exclusively in the United States at a price of $99.99 with preorders starting Thursday, said Tech Crunch. Ralph de la Vega at AT&T came up with the plan to bring HTC into the game; at the Thursday presentation he indicated that they were the ones to suggest to Mark Zuckerberg that HTC, a partner for AT&T, to be the premier device maker for an integrated Android smartphone. De La vega commented that “when Mark first approached us about this, what captivated me was that this would be the best Facebook experience ever. People would be at the center, and I bought into that.”
Verizon Communications (NYSE:VZ): Current price $49.25
Verizon Chief Executive Lowell McAdam has introduced a full no-contract wireless world, saying that it was “pretty easy” to change up the model to eliminate contracts, and also said that he would monitor the consumer response that T-Mobile receives from its recent move to drop contracts and phone subsidies in their entirety. He showed a willingness to follow suit if consumers begin asking for it, said CNET. McAdam said to reporters on the sidelines at an event to raise awareness for Verizon’s “Powerful Answers” initiative, that “I’m happy when I see something different tried. We can react quickly to consumers’ shifting needs.”
Sprint Nextel Corporation (NYSE:S): Current price $6.15
Crest Financial, the biggest minority shareholder in Clearwire Corporation (NASDAQ:CLWR), has proposed a debt financing plan to lower the carrier’s dependence on majority owner Sprint, proposing to provide the firm with $240 million in financing, says Reuters. Crest said that the offer, which was created to oppose Clearwire’s purchase by Sprint, would allow the carrier sufficient capital to fund 2,000 LTE sites, as well as pay interested expenses in 2013. The shareholder also remarked that the financial plan “would also provide Clearwire’s board with more time to consider the proposed merger with Sprint,” and would allow the firm to continue operating independently in the while.
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