Interim Sprint CEO Sets Out To Restore Company's Focus
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Sprint Nextel's interim chief executive acknowledged yesterday that the company had lost focus, and he vowed to rally its beleaguered workforce.
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Sprint is considering options such as spinning off its WiMAX business and taking on partners in an effort fimd its nationwide wireless broadband network.
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Home Depotâs new chief is working to return the chain to its humble retail roots and erase the perception that it has lost its focus.
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A new face in the boardroom heralds change for the troubled company.
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Sprint Nextel Corp  on Tuesday named former Embarq Corp  Chief Executive Dan Hesse as its president and CEO, effective immediately.
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The service will be available first in Baltimore, Chicago, and Washington, D.C., a Sprint exec tells a CES panel.
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The cellular telephone industry&#39;s game of musical chairs has started again, and the music may soon stop with one less chair. Nextel Communications is in advanced talks to merge with Sprint, according to executives involved in the negotiations.
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Sprint Nextel Corp  named Embarq Corp  CEO Dan Hesse as its new president and chief executive on Tuesday, hoping the telecom veteran can help the No. 3 U.S. mobile service provider turn around its business.
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Sprint Nextel and its hardware partners sought to convince a small audience at the Consumer Electronics Show that their WiMax plans are on track, despite the recent departure of Sprint&#39;s CEO and the dissolution of its partnership with Clearwire.&quot;We are exactly where we said we&#39;d be,&quot; said Barry West, Sprint Nextel&#39;s CTO and president of the company&#39;s Xohm WiMax business unit. Sprint is in the process of soft-launching in Chicago and Baltimore, he said.Executives from Nokia and Samsung said they both expect to have user devices ready for the second-quarter launch. In addition, Motorola said it is working on a device that will operate over Sprint&#39;s EvDO (evolution, data optimized) cellular network, Wi-Fi, and WiMax.Since the&#160;ouster of Gary Forsee, the former CEO and chairman of Sprint Nextel, who was thought to be a champion of the company&#39;s WiMax plans, onlookers have speculated that the network might not roll out as planned. In addition,&#160;Sprint Nextel ended a partnership with Clearwire&#160;to jointly deploy WiMax, a further cause for uncertainty. Sprint has been hemorrhaging mobile subscribers and recording declining revenues since its purchase of Nextel.Beyond the unrest internally at Sprint, the company faces critics of WiMax who say that the technology won&#39;t work as well as cellular technologies in a mobile environment and that it won&#39;t support international roaming as easily as the cellular standards.But in describing the reasons why Sprint chose WiMax and why it intends to aggressively pursue the network, West further sought to soothe market qualms about the future.&quot;Being first to market is a huge advantage,&quot; he said. &quot;And WiMax technology is here, now, and mature.&quot;While an investment in a totally new technology requires a strong reason for change, this won&#39;t be the first time Sprint&#39;s doing it, he noted. WiMax doesn&#39;t follow on the upgrade path for CDMA, the basis for Sprint&#39;s cellular network, so it requires a totally new network.Sprint did that first when it moved from an analog cellular network to digital, West said. The same went for the move to third-generation technology, although in that case Sprint stuck with the CDMA path.Sprint also considered LTE (Long Term Evolution), a fourth-generation mobile technology, but one big disadvantage is that it&#39;s not yet available, he said.Moving to WiMax represents a shift to a new air interface technology: OFDM (Orthogonal Frequency Division Multiplexing) instead of CDMA, which is the basis of the current 3G technologies. According to West, when CDMA is deployed in a wider section of spectrum, which helps boost throughput, the computational complexity required goes up exponentially. That requires higher-performance chips, which come with a steep price tag, he said.With WiMax, Sprint plans to use a wide section of spectrum that can dynamically switch from carrying data up or down, depending on user requirements, he said.Beyond the radically different network technology, Sprint envisions a very different business model than cellular, one that will support any kind of standard device.&quot;Look at the cellular model. It was very successful but also very frustrating,&quot; West said. He was referring to the business model in the United States where operators subsidize phones and then require long-term subscriptions from users.With Xohm, Sprint will allow any WiMax-compliant device to run on the network, he said. End-users will buy the devices themselves, probably at a variety of retail stores and hopefully for a low price because vendors expect the cost of WiMax chips to drop dramatically, like Wi-Fi. &quot;Since I&#39;ve got no money in you, I don&#39;t need a contract,&quot; West said. That opens the door to a wide array of new pricing scenarios. End-users could pay for the day, week, month, or on a regular subscription, he said.While West declined to cite specific prices, he said a monthly subscription to Xohm will be comparable to existing DSL rates.Initially, Sprint will sell PC cards and modems, but by the end of this year as many as&#160;10 different kinds of devices could be available, he said. Navigation and gaming devices are possibilities, he said.If the market has any doubts about Sprint&#39;s plans for the network, it should rest assured that, regardless, the future of WiMax is more certain, panelists said. &quot;WiMax is bigger than Sprint,&quot; said Sriram Viswanathan, vice president and general manager for Intel Capital and for Intel&#39;s WiMax business.Motorola alone has 17 contracts for networks and is involved in 60 trials, said Fred Wright, senior vice president and general manager at Motorola. &quot;This technology is real, it&#39;s not a fairy tale,&quot; he said.
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New Sprint Nextel CEO Dan Hesse has lots of choices as he&#160;takes over the ailing mobile carrier&#160;and looks for problems to start solving.Sprint, the third-biggest wireless operator in the U.S., is&#160;losing subscribers as it keeps working through the merger of Sprint and Nextel, which occurred in 2005. On Tuesday,&#160;Sprint announced Hesse is taking over immediately for Gary Forsee, who was forced out by the company&#39;s board in October. Hesse, 54, previously led Embarq, the local wireless carrier Sprint spun off as part of the Nextel deal.Sprint needs to both distinguish itself from competitors and get its own house in order, according to mobile industry analysts.&quot;They couldn&#39;t go on without someone who&#39;s willing to set a direction,&quot; said Avi Greengart of Current Analysis. Sprint could try to compete with Verizon Wireless and AT&amp;T Wireless on price, or with more flexible terms of service, or bring out more innovative devices, but it&#39;s failed so far to choose, according to Greengart.&quot;Their brand right now doesn&#39;t stand for anything,&quot; he said.One thing the Sprint name has been associated with recently is disappointing customer service. Reporting on the quarter ended Sept. 30, the company blamed accelerating customer &quot;churn&quot; to other carriers in part on longer help calls and waits for those calls. The introduction of simplified bills, expected to continue until the middle of 2008, boosted the number of those calls, the company said in a filing with the U.S. Securities and Exchange Commission. Sprint also noted new handsets at rival carriers, clearly a reference to AT&amp;T&#39;s Apple iPhone.Meanwhile, thanks to about 700,000 subscribers quitting the aging Nextel network, Sprint&#39;s subscriber base as a whole declined by a net 337,000 in the quarter. The carrier said it had about 54 million subscribers on Sept. 30.What could most set Sprint apart is also its biggest gamble, the WiMax wireless broadband network it plans to build across the U.S. at an estimated cost of US$5 billion. Though the WiMax network is likely to be in place first, set to reach 100 million people by the end of 2008, Sprint&#39;s main rivals plan to have their own high-speed data offerings using a similar technology, LTE (Long-Term Evolution). And WiMax won&#39;t fix Sprint&#39;s long-overdue need to harmonize its cellular operations, currently split between CDMA (Code Division Multiple Access) and Nextel&#39;s older iDEN technology, Greengart said.If it goes ahead with WiMax -- interim CEO Paul Saleh said this month the business might be spun off -- Sprint will have to convince skeptical investors it&#39;s making the right move, said Yankee Group&#39;s Phil Marshall. It will also need to find a way for WiMax to truly complement the cellular business, Marshall said. So far, Sprint has painted WiMax as a mobile service distinguished from its conventional voice offerings by the promise of an any-application, any-device model. A better plan would be to push WiMax as an alternative to wired broadband that&#39;s bundled with Sprint&#39;s cellular service, Marshall said.However, in the short term, Hesse just needs to get the company to run its existing businesses better, Marshall said. Cleaning up customer service would be one key move, he added. Judging from Hesse&#39;s previous performance -- he once headed AT&amp;T Wireless -- the new CEO is qualified to do this, according to Marshall.&quot;He&#39;s very pragmatic and systematic in his management style,&quot; Marshall said.&#160;
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Sprint's planned combination with  rival wireless carrier Nextel Communications Inc. will get a  thorough review by the Federal Communications Commission, the  agency's chairman said on Wednesday.
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Clearwire's CEO said Wednesday that the company has been working with Sprint to ensure roaming between the two companies' nationwide WiMax networks.
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Sprint Nextel, which has struggled to attract customers with marketing criticized as confusing and unfocused, will try again when it rolls out new advertising this weekend.
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The chief executive of the embattled Welsh ambulance service  - the third in as many months - outlines his improvement plan.
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About ten days after saying it was thinking about spinning off its mobile phone business, Motorola's CEO is now talking commitment with his phone business.
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U.S. mobile operator Sprint Nextel has appointed Dan Hesse as president and CEO. He replaces Gary Forsee, who resigned in October.Forsee left as Sprint Nextel fought to retain market share in the face of its two larger rivals, AT&amp;T and Verizon Wireless. The company struggled with integrating the disparate customer bases of its two constituent parts, not least because the Sprint and Nextel wireless networks are based on different technologies.Sprint Nextel&#39;s directors already know Hesse: he most recently served as chairman, president and CEO of Embarq, a company formed from the local telecommunications division of Sprint following that company&#39;s 2005 merger with Nextel.Before that, he held the same roles at Terabeam, a wireless carrier, following a number of years at the head of AT&amp;T Wireless.Hesse will now join the Sprint Nextel board of directors, although unlike Forsee he will not be its chairman. That honor will remain with James Hance, who took the post following Forsee&#39;s departure, the board said Tuesday.Sprint&#39;s two cellular networks serve around 54 million customers, and it also has licenses to build a national WiMax network, leaving it with something of an identity problem. Hesse will have to balance the needs of these networks as he sets out a new strategy for the company.
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When Gary D. Forsee took over as chief executive of Sprint Corp. 20 months ago, the phone company was reeling from the telecom bust, burdened by debt and grappling with bigger competitors on three fronts: local, long-distance and wireless calling.