Sprint Nextel Plans For 2013

Goldman Sachs has published a research report on Sprint Nextel Corporation S after Sprint unveiled it's plans for margin expansion in 2013. In the report, Goldman writes "On Monday, Sprint unveiled its network modernization plan, dubbed Network Vision. The plan, to be implemented over a 3-5 year period, calls for the use of multimodal, multiband technology to maximize flexibility of technologies and frequency bands. Management outlined $10bn-$11bn of savings (net of $4bn-$5bn of implementation costs), to be realized over a seven-year span. The majority of the savings are expected to be driven by reduced roaming, backhaul, utility and lease expense. Lower roaming and backhaul costs should be evident in 2012, though these benefits are initially expected to be masked by incremental operating costs, including redundant access, rent, and utility expense during the network transition. Margin expansion from the network modernization alone should yield benefits beginning in 2013." Sprint Nextel Corporation closed yesterday at $4.17.