Sprint (S) stock was down on Wednesday following news of its cost-cutting plan.
The Sprint plan to save money has it moving its cell towers off of land leased from Crown Castle (CCI) and American Tower (AMT). It will start to move its cell towers onto government-owned land as early as June. The plan is expected to save S $1 billion, reports TheStreet.com.
Sprint is also looking to reduce its reliance on Verizon (VZ) and AT&T (T) for its wireless service. The company pays the two wireless carriers roughly $1 billion a year to use the cables that connect its cell towers. Sprint’s plan to save money could result in lost coverage in certain areas, TheStreet.com notes.
Michael Bowen, an analyst for Pacific Crest Securities, noted that Sprint’s plan to move its cell towers off of land owned by Crown Castle and American Tower could negatively affect those companies. However, it claims that American Tower won’t be affected as bad as Crown Castle, reports Investor’s Business Daily.
S shares were down 12%, CCI and AMT shares were down 3%, and VZ and T shares were down 1% as of Wednesday morning.
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