Wireless Industry News » Sprint brings back 2 year contract option for devices
Sprint customers can again select a subsidized price on a new device, though a dinged for higher access charges.
Customers can avoid the additional access charge by selecting the carrier’s “unlimited” data package, which is priced at $75 per month, or avoid all access charges by choosing to pay the full price on the device up front.
“Things really went off the rails when Sprint started doing leasing and I wouldn’t be surprised to see others start doing leasing because of the distortion, or benefit, that Sprint has gotten,” said Moffett. “On an as-reported basis, Sprint looks like it’s growing [earnings before interest, taxes, depreciation and amortization]at just under 30% and it looks like it’s trading at 5.7-times EBITDA, not an unreasonable number. But if you adjust for all the accounting nonsense, Sprint is actually growing EBITDA at negative 30% and it’s actually trading at 12-times EBITDA.” Read More