Summary
1. Sprint is still struggling from the Nextel merger which has not realized any of the savings that were projected from the merger. 2. Sprint’s dreaded customer service has already led to declining customer base that is already hurting the company. 3. Sprint’s WiMax vision is a dangerous diversion especially in-lieu of the above two points.
Analysis
Ever since Sprint announced their merger with Nextel, their troubles began. The widely publicized savings have not yet materialized, their customer service has not improved and some would say has actually deteriorated. At this point where Sprint has more than its share of problems, the last thing they need is to focus on something, WiMax that can only seem to be a dangerous diversion from their core competency. Their focus should be go back to basics of a wireless company and trying to get back to track on simple issues like customer service rather than aiming for the sky.
I think that Saleh’s statement was well thought about and well received. The incoming CEO should take this one step further and immediately stop any further plans on rolling out WiMax. The current plans are to do a soft launch in the near future in Washington, Baltimore and Chicago.
Bottom line, Sprint needs something other than their current offering to become a formidable competitor to AT&T and Verizon. WiMax was going to be that offering but with so many other problems, this just does not seem the right time.
