FoneFrenzy – Mobile Technology Blog

Sprint (NYSE: S) Nextel coporation, which already owns the Boost Mobile and Virgin Mobile USA (NYSE: VM) brands, maybe interested in acquiring MetroPCS Communications to have utter domination the prepaid wireless marketplace.

Bloomberg is reporting that analyst Collins Stewart, who states “Sprint may buy MetroPCS to add to its base of prepaid customers, which already includes subscribers of the Boost Unlimited and Virgin Mobile USA Inc. brands, said Miller, who rates Sprint shares ‘hold’. MetroPCS fell 49 percent last year and its market capitalization is currently about half what it was at the end of 2008.”

“It helps Sprint continue to consolidate its position in the increasingly competitive prepaid marketplace in densely populated major metro centers while allowing MetroPCS shareholders an avenue to continue to participate in the market from a position of greater strength,” he said in the note.

Leap Wireless was reported to have hired advisers and formed a special board committee to look into selling the company or merging with rivals, several people familiar with the matter said, as reported by the WSJ.

After launching Boost Mobile on Nextel’s IDEN network, Sprint has seen a significant increase in it’s profits from the low cost carrier. Boost Mobile’s $50 plan competes head-to-head with low-cost service plans of the other leading players in the unlimited prepaid market such as MetroPCS (PCS – Analyst Report), Leap Wireless (LEAP – Analyst Report), Deutsche Telekom’s (DT – Analyst Report) US subsidiary T-mobile USA and America Movil’s (AMX – Analyst Report) Tracfone. Recently, Boost Mobile launched pre-paid service services in Puerto Rico.

Map of All WalMart Stores in the U.S.A.

Even Forbes reported that Sprint Nextel Corp., attracted bullish options players to the field today with the value of its shares standing 5% higher to $3.60. Near-term optimists purchased roughly 10,000 calls at the now in-the-money February $3.5 strike, paying an average premium of $0.25 per contract. Call-buyers stand ready to amass profits above the breakeven point on the calls at $3.75 through February expiration.

So far it seems Sprint is heading in the right direction and if the WiMAX on top of every WalMart rumor is true, Sprint could be seeing some significant growth in the years to come.

[via Business Week]