Monday, October 08, 2007

Sprint CEO Ousted

The Board of Directors at Sprint-Nextel ousted CEO and Chairman Gary Forsee.

Sprint has been unable to take advantage of its $36 billion merger with Nextel (that ended up costing almost $50B in additional acquisitions to settle resulting litigation with Nextel Partners). Announced in Dec. 2004, only recently has the back office of the 2 separate cell companies been reconciled - sort of.

The ouster comes after the company's announcement that it won't hit its $41B revenue projection this year. (Or apparently hit any internal benchmarks for performance and integration).

How could it?

Sprint management made a decision to become an all-wireless company. Every proclamation is about that.

  1. Sprint is the preferred network for MVNO's.
  2. Pivot is the company's MVNO partnership with the major cableco's - TW, Comcast, Cox, and Bright House. (Just launching if the FCC privacy rules don't ground it).
  3. The launch of the femtocell service, Airave, in Sept., 2007.
  4. The $8B plan to build out a nationwide 4G WiMax network.
  5. XOHM as the brand for the new WiMax service, rolling out in 4Q07.
  6. The partnership with Clearwire in the WiMax effort.
  7. Spinning off the local/landline business (formerly Sprint United) to EMBARQ in May 2006.
  8. Sprint teams with Google for Gmail app and search.
Despite being the first IXC to go all-wireless, it is behind the two Bell cellcos by a Nextel car length.

Remember that Sprint is the once-upon-a-time #3 long distance company. The pin drop, all-fiber network.

What are they doing with THAT network now? Oh yeah. Nothing. Sprintlink is a decent Tier 1 internet backbone, but you wouldn't know it. The company doesn't push Long Distance, VoIP Termination, MPLS, VPN or Ethernet. Or IP for that matter. (Try getting a quote.)

After dropping the whole ION IP strategy, Sprint stopped looking at IP and started looking at wireless. Much easier to sell to mass market consumers than medium businesses. NOT.

UPDATE: " Of course when you get paid $21.6 million a year, well getting the boot comes with the gig."

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