J.P. Morgan Comments on Implications of Sprint's 4G Options

According to a recent report from J.P. Morgan, Sprint Nextel (NYSE: S) plans to modernize their business model over the next 3-4 years in a plan called Network Vision (NV). This plan, although optimistic, will require additional 4G capacity and therefore, Sprint will have to decide if it will re-partner with Clearwire or find another partnership moving forward.

In the report, J.P. Morgan said, "This nationwide coverage will likely be Sprint's first line of capacity and should cover it in most markets for some time. In some markets, however, we expect Sprint to need hotspot capacity for demand overflow, and this could come from Clearwire or L2. We believe Sprint is likely to come out with a good economic deal either way."

Sprint Nextel closed yesterday at $5.84.