Sprint is moving too slow. Sprint connection speeds are horrible and competitors are already on LTE in larger markets...this is a very bad recipe for Sprint.
Sprint is doing penance for past sins. Faced with fleeing customers and larger competitors rolling out 4G they took a shortcut instead. The plan was to come out with faster a 3G (WiMax) network before AT&T and Verizon could finish their networks and then be first to market, advertise their network as, "4G" and hope customers wouldn't be able to tell the difference. Unfortunately, they did and left Sprint in droves. Sprint had no choice but to bite the bullet and build an LTE network.
At some point Dan Hesse went to Sprint's board to explain that the billions they had already spent on WiMax were gone, he'd need another $8 billion or so to build a new network, all their high-end phones in development would need to be scrapped and they would probably have to offer deep discounts on their existing high-end phones just to get them out of inventory. I wasn't at that meeting but I can assure you it wasn't pleasant.
Instead of focusing on network upgrades and migrating to LTE, they brought the Iphone to the network -- monumentally stupid execs. The Iphone may turn out to be the Sprint killer!
A national communications network doesn't turn on a dime. Just figuring out how to pay for the new network took a while - Sprint hasn't turned a profit since 2007. It isn't a matter of just flipping a few switches, there are 22,000 towers that need to be upgraded and 20,000 to be retired - that takes a while.
One way to pay for the new network is new customers. Sprint added 1.6 million of them last quarter. 720,000 of those customers (45%) chose an iPhone. Meanwhile, T-mobile lost 700,000 customers last quarter. T-mobile said they left mostly because they couldn't get iPhones. That's right, hundreds of thousands of customers left a great network to join one with data speeds comparable to a 800 baud dial-up connection just so they could get an iPhone. Overall, 40% of the phones Sprint sold in Q4 were iPhones.
If Sprint didn't get the iPhone there's a good chance that they would have lost customers in Q4. Without the revenue streams from the iPhone and the coming revenues from their iPhone 5 exclusivity agreement there's no way they could convince investors to give them the money they need for their network upgrade.