Tomahawk, WI 11/19/2013 (BasicsMedia) – Sprint Corporation (NYSE:S) with market cap of $29.18 billion is one of the four major U.S. mobile operators. The carrier has had mixed fortunes so far in the year just like all the other major players in the industry. To begin with, we can see that year to date S has increased its share value from the lows of $5 to the highs of above $7 per share. Consequently, S has had a boost in its market value. However, Sprint has also experienced subscriber loss which is not good for its future. But subscriber loss is something that has impacted operators across the industry. So far, Sprint Corporation (NYSE:S) is putting its best foot forward to capture 200 million people with its LTE service by year-end. If the company attains this number, it would have made a significant step into boosting its revenue collection and earnings.

Prepaid subscriber base is vital for Sprint’s growth

Carriers across the industry are seeking to boost their prepaid subscriber base to tap the lucrative potential in the market segment and S is not left behind in this campaign. The contest for the prepaid users pits Sprint against AT&T, Verizon, and T-Mobile. In the second quarter, Sprint Corporation (NYSE:S) witnessed a significant decline of subscribers in the category due to the discontinuation of Lifeline program. However, its third quarter figures indicated impressive rebound which has helped cool investor tempers over the stock. Since the noted surge in prepaid user base, it can be seen that S has won the confidence of its shareholders and investors.

Sale of smartphones booting Sprint’s foray into prepaid market

Apple’s new version of iPhones has attained record sales, witnessing over 9 million sales in the first three days since the start of shipment. S sells these devices for its prepaid services especially through its brand Boost Mobile. The more iPhones Sprint sells the more prepaid users it taps to its network. Since the release of iPhone 5S, the carrier is seen plugging the hole through which it lost prepaid users in the earlier quarters of the year.

The fact that telecoms market is seeing a shift in subscriber preference is also another factor that makes this segment lucrative and also why Sprint Corporation (NYSE:S) has valid reasons to pursue the cake even if it means sinking billions of dollars in infrastructural development to boost its capacity. Since 2008, the prepaid mobile users in the U.S. was just about 18% of total subscribers, so far this year, the number has swollen to more than 23% and it is project to go up in the next quarters and the coming years.

Sprint Corporation (NYSE:S) needs bigger LTE investment

Upgrade of network is the in-thing in the communications industry today. Sprint is already underway in its network expansion and upgrade cross different markets in the U.S. with its 4G LTE being in more than 230 markets so far. LTE ensures that users experience high-end services. Stronger presence in LTE coverage is now synonymous with fat revenue in the telecoms industry and Sprint Corporation (NYSE:S) is doing all that is possible to expand its network and strengthen the quality of its service.

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