Dan Hesse is the right person for the job at Sprint Nextel (NYSE: S). In addition to the new CEO reassuring the market that he means business by announcing more than a few thousand layoffs, Hesse has the skills to understand why the Sprint-Nextel merger was never really completed and take steps to finalize it into one single company, almost three years after the merger officially took place.Sprint has lost hundreds of thousands of customers in many recent quarters due to the company not giving enough attention to its Nextel radio network. The thinking back in 2005 was that combining Sprint and Nextel into one company would give the single entity a huge customer count and put it on par with other wireless giants like AT&T (NYSE: T) and Verizon Communications (NYSE: VZ). However, customer counts are meaningless if you jolt so many of them so badly that they head for the exit doors. That's precisely what has happened.
Here we are in January 2008, and Sprint has two headquarters -- one in Sprint's backyard of Kansas City, Missouri, and the other in Nextel's backyard of Reston, Virginia. Why on earth Sprint operates out of two geographical headquarters is a mystery, but it's symbolic of how the two companies really never merged outside of a single customer billing system (well, that's just my opinion). Sprint owns some massive assets in terms of wireless licenses around the U.S. and has a very capable and cutting-edge network. It should be doing anything but losing customers. Hopefully, Hesse can make that a reality soon. His success in Sprint spin-off Embarq is proof that he's the right person to attack Sprint's problems.
DISCLOSURE: The author holds no long or short positions in Sprint Nextel Corp. at this time.











Reader Comments (Page 1 of 1)
1-15-2008 @ 4:48PM
clay said...
That is good news and it is the only good thing said about Sprint in years. Lets hope it is so.
2-05-2008 @ 5:03AM
JOSEPH MAUCERI said...
i am a sprint customer who ordered a new motorola razor phone. they were supposed to send a RETURN KIT for my old defective phone. i have been passed on from one to another to at least six different phone numbers. THE SPRINT CORP. is so messed up, it is no wonder that hundreds of thousands of their former customers are jumping ship. VERY VERY POOR CUSTOMER SERVICE.
2-16-2008 @ 8:11AM
Favid & Winifred Kimball said...
We are sprint customers who ordered 2 new instruments (Feb 5th) and upgraded our services. My husband has been on the phone with your company for 4 hours today (Feb 15th) trying to get the 2 phones without any success. He has talked to at least 15 people maybe more with no satisfaction. We have been with Nextel for a long time before it was Sprint. We don't really want to leave Nextel but we are frustrated. He is still getting passed on to other people as I write this. Like, Joseph Mauceri we may have to jump ship.
Very Very Poor Customer Service.