Summary
1. In a recent Wall Street Journal article, the Verizon CEO makes the point, “I don't know what Sprint thinks it is." 2. It is just not convincing when Sprint responds, "We know exactly who we are and where we want to be." 3. In order to be successful, Sprint really does have to become a different kind of company – because it will probably not be able to compete with AT&T and Verizon Wireless head to head effectively.
Analysis
When Sprint says in the Journal piece, “The exodus of Nextel customers over the past few years left a lot of room on the network” – that is not a good sign that the future of the company as it is constructed now will be viable. It is kind of like a restaurant, which is not attracting adequate business putting out a sign: “Immediate Seating Available.”
Often the best advice for corporations is to stick to their knitting. In the case of Sprint, it can probably only survive if it does look for new opportunities. Of course, getting into WiMAX is not a good example. But the recent stress on wholesale and providing enterprise wireless networks are solid niche opportunities.
Its increased involvement in fuel cell technology makes a lot of sense. During Hurricane Katrina, insufficient power backup appeared to be its biggest problem. And it is not out of the question that gaining expertise in this area could lead to other prospects in the future.
