Virgin Mobile just introduced its first "4G" phone, the $300 HTC Evo V 4G, which can use Clearwire Corp.’s data network in addition to Sprint’s. The iPhone, on the other hand, is limited to Sprint’s "3G," or third-generation network, which is slower than those of the big iPhone sellers: AT&T Inc. and Verizon Wireless.
Sprint started selling the iPhone last fall, after its two bigger competitors. Sprint said the iPhones it buys from Apple for Virgin Mobile will count toward its commitment to buy $15.5 billion worth of phones over three years. That’s a big and risky undertaking for Sprint, which is in a precarious financial position. The company also said it doesn’t expect Virgin Mobile’s iPhone sales to materially affect its 2012 operating income before depreciation and amortization.
Sprint shares rose 7 cents to $2.79 in early trading.
Sprint, which is based Overland Park, Kan., doesn’t say how many subscribers Virgin Mobile has. Sprint over all has 15.3 million subscribers on no-contract plans, under the Virgin, Boost and Assurance Wireless brands. It has 32.8 million subscribers on Sprint and Nextel contract-based plans.
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