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  EMBARQ Leaves Lingering Questions...
Posted on Thursday, February 02 @ 21:06:25 MST by Christopher_Price
 
 
  Sprint PCS Sprint today announced EMBARQ, finally ending questions about the branding and form the local and local long distance spinoff will take. This presents many new realities for the company who taunted AT&T; as well as AT&T; Wireless for being One Sprint with Many Solutions. However, beyond the marketing problems, some unanswered questions leave the potential for a dangerous shell game...

Right down to the logo, EMBARQ has the marks of Sprint all over it. The EMBARQ logo bears a striking resemblance to an archaic Sprint logo before people knew how to draw, turned a complete 180 degrees from the company that is always going forward. However, metaphors do not do the situation justice, that may be for the Department of Justice to chime in on.

Without any more of a prelude, we'll say this, Sprint knows EMBARQ is embarking on a death journey. Sprint knows that with unlimited long distance on wireless phones that the future for traditional LD companies is doomed. So, what do they do? Spin it off. Makes the feds happy that Sprint is a leaner, less meaner dominant role in the wireless industry. However, we'll raise the key question tonight; is Sprint intentionally selling shares of EMBARQ only to let them lose value, only to buy the company back once its deprecated value is realized by the greater market.

This is not DoD iDEN. We have evidence for that, which we may release at a later date. We are raising questions for Sprint to address. If Sprint is planning to buy back all of EMBARQ and re-integrate it into Sprint, is Sprint using anti-competitive (and potentially illegal if not giving full disclosure) business tactics to improve their balance sheet? Should Sprint make commitments to not re-capture total outstanding shares of EMBARQ for any given period. And, should Sprint commit to give some outlook on their future of EMBARQ, either to absolve themselves of it completely, or for it to maintain indefinite subsidiary status?

Until Sprint puts in plain English in the same talking point memos they have used to discredit our correct reporting in the past, we suggest people stay as far away from EQ over at the NYSE as possible.


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Re: EMBARQ Leaves Lingering Questions... (Score: 1)
by N_Da_Game on Friday, February 03 @ 11:04:49 MST
(User Info )
Stop making stock recommendations without the proper DD. 1. Sprint is spinning of the local telecommunications business and not the long distance. They stop marketing the LD business a few years ago. 2. Local telephone service is a declining business and this is why Sprint is getting out while there is still some value left. Alltel has publicy announced the same spin off strategy. 3. The local business is a boat anchor where Wall Street is concerned. Why would Sprint ever buy back a business they are directly competing against with wireless? 4. Sprint is also enabling all of the major cable players with service and expertise that continues to take market share from the local telephone business.


 
 


 
 
Re: EMBARQ Leaves Lingering Questions... (Score: 1)
by Krassh on Friday, February 03 @ 11:05:22 MST
(User Info )
They are not spinning of the Long Distance LD, they are spinning off the Local Telepone NLC. Even if they where spinning off Long Distance why would they, where do think the cell phone traffic goes? Long Distance will also have a place in a telco's portfolio if that telco also has wireless. It is the Local Telephone that is doomed. I am sure Sprint is spinning off the Local telephone to sell them in the future.


 
 


 
 
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