Financial – Industry Insights

With market share falling, Sprint, currently the U.S’s 3rd largest wireless provider, is banking on technological improvements as well as the new iPhone to reverse its course. While in the long run the tactics may bring in new customers, the company is having to deal with shareholders who are unhappy with the short term outlook and who are doubting the worthwhileness of the investments. Overhauling Sprint’s sluggish 4G network will require the company to borrow substantial amounts of money, resulting in a negative cash flow for the next two years. Adding to the concerns is the fact that the carrier will be selling its iPhones at a loss, hoping to eventually profit from monthly charges.

In its strategy to gain more customers, Sprint has come up with some tactics that are sure to be effective as iPhones and faster service are in high demand. The conflict, however, arises from a disagreement on the time value of money. Investors are not satisfied with the profits they predict the upgrades will bring over the next few years.

It is safe to say that you will not be able to hear a “1-800-PIN-DROP” at a Sprint shareholders’ meeting anytime soon.

Wage-less on Wall Street

Its a strange sight when floor traders aren’t the most frenzied people on Wall Street.

That title is now held by the crowd composed of unionized workers and left wing activists participating in the “Occupy Wall Street” demonstrations. While this is hardly the first protest of its kind, it is arguably one of the hardest to understand as the frustrated demonstrators don’t seem to have any clear objectives. One 18 year old told a reporter

….at the end of the day we’re all here because we’re all f****ing unhappy.

For most, the unhappiness likely results from cuts in wages or benefits, or unemployment which are inevitable effects of an economic slump. But the demonstrations have become increasingly irrational and mob like. On Saturday, 700 “occupiers” were arrested for swarming the Brooklyn Bridge and blocking traffic.

At times of unrest, financial corporations are often the top target of disgruntled citizens. The government bailouts American banks received have reaffirmed the image of greed the financial sector is sometimes associated with.

It remains to be seen whether the OWS crowd will change anything for “the 99%” they claim to represent; for now their behavior is disrupting the life of many of these individuals.