Sprint Launches 2nd 4G Handset – Analyst Blog

Expansion of 4G services is vital to Sprint Nextel’s (S) survival in the U.S. wireless market, given its continued market share erosion. To prevent further decrease, Sprint launched its second 4G smartphone in collaboration with Samsung Telecommunications’ “Samsung Epic 4G” in Richmond, Virginia; Salt Lake City, Utah; and St. Louis, Missouri.

 

Sprint had already launched the first 4G handset “EVO 4G” in early June, which is available in Sprint’s retail locations as well as from its retail partners RadioShack (RSH), Best Buy (BBY) and Wal-Mart (WMT). EVO 4G is a dual-mode (3G/4G capable) smartphone that runs on Google’s (GOOG) latest version of the Android operating system.

 

Sprint provides enhanced services such as faster wireless speeds, a 3G/4G smartphone and unlimited data plans to regain its lost market share. The company continues to expand the market coverage of its 4G WiMax network in collaboration with Clearwire (CLWR). Sprint is way ahead of its bigger rivals AT&T (T) and Verizon Communication (VZ), which are yet to launch their 4G network based on the Long-Term Evolution (LTE) standard.

 

Sprint is well positioned to leverage the growing wireless smartphone market in the U.S. with a rich portfolio of popular smartphone offerings and more advanced devices in the pipeline. The company’s 4G WiMax is a major opportunity in the wireless market.

 

However, Sprint’s advantage on account of its 4G wireless service may quickly erode as other carriers offer competing services. Verizon, for instance, plans to launch 4G LTE services in 25−30 markets in the fourth quarter of 2010. Additionally, AT&T will conduct LTE trials in 2010 followed by the expected launch in 2011.

 

Sprint currently offers 4G services in 36 states. It expects to expand to several markets including Boston, Cincinnati, Cleveland, Denver, Los Angeles, Miami, Minneapolis, New York, Pittsburgh, San Francisco and Washington, D.C. in fiscal 2010.

 

We are currently maintaining our Neutral recommendation for Sprint Nextel with a Zacks Rank #3 (Hold).