Summary
I will keep my comments brief. In hindsight a Sprint and Level 3 deal makes perfect sense. However, such a joint venture is not unusual.
Analysis
A joint venture is not unusual. An acquisition is not unusual. What is unusual is “network sharing”. Now that is an idea I like because it does not expose Sprint to the onerous implications of owning an expensive network. Remember that networks cost money to operate. But then again there are a ton of downsides to network sharing.
One of the many bad things about network sharing is simple alignment on operational priorities: Imagine, Sprint with one set of goals for the overall fiber network and Level 3 with another set of goals for the overall fiber network. Now imagine trying to share a network.
P.J. Louis consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
