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Sprint: Good Sign Masa San Has Reservations, Says Wells

Sprint shares are down 58 cents, over 8%, at $6.41, while T-Mobile stock is off $3.39, or over 5%, at $59.56.

In Sprint’s defense, Fritzsche writes that SoftBank’s caution is actually a good sign Sprint is not up against the wall:

We had often questioned why Masa Son would give up control if there was no premium reportedly to be paid (which had also been reported). While S shares are feeling more of the pain on this speculation (down almost 9% vs. TMUS down 4.7% and S&P down 0.28% intraday 10/30), the fact that SB is seemingly make a purposeful decision to walk away speaks loudly to the fact S's back is not against the wall. In the Sept quarter S reported a 10% growth in postpay (total) gross adds (best growth of any carrier) while TMUS reported a decline of 6.5%. By our estimates, S's share of gross adds (SOGA) has increased the last 3 consecutive quarters. After coming off our 5G Centric week of learnings last week, we continue to believe the high band spectrum (which S has so much of) is going to play an increasingly important role in the 5G world. For TMUS we would not be surprised if it looks to make another move to gain access to additional spectrum to help support the strong growth it has continued to see the past few years.


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