Sprint's New CEO Hesse: So Far So Good

Yeah, I know it has only been one day, but at least Sprint's (S) new CEO knows what the company's #1 problem is.

New CEO Dan Hesse said his first priority will be to tackle the customer-service problems and customer defections that have plagued the company in the past year saying, "I read the magazines and Consumer Reports like everyone else." Good!

An internal Sprint document recently disclosed described the company's "inferior results" in customer service. It pointed out that Sprint resolved just 53% of problems on the first call, compared with 71% for Deutsche Telekom AG's T-Mobile USA, despite Sprint having nearly 3X's as many customer service reps.

Hesse was the pioneer of AT&T's (T) "Digital One Rate" plan, which introduced flat-rate pricing to U.S. wireless consumers in the late 1990s. Prior to the "One Rate" plan, most Americans were accustomed to paying for wireless service by the minute, incurring extra charges for roaming or long-distance calling. In short, they revolutionized the cell phone industry. Hesse has the experience and a proven track record, if he completes step two below, he has a chance at success.

The second thing he can do is chop heads. Sprint and Nextel have never merged on a corporate level and until they do, real success will be elusive. I have no idea whose fault it is, and two full years after the merger was completed it really no longer matters. Anyone from either side who stands in the way, see ya'.

Fortunately for potential shareholders, both of these steps will take time to accomplish. The evidence that they are being implemented will become apparent before their results show up in earnings and that gives those who wish to buy shares plenty of time to wait.

Comments

[Stachey:]

Don't hold your breathe...it's just another Sprint guy at the helm.

2007 Dec 20 02:22 PM

[your dad:]

Hesse is exactly what Sprint needed! Here we have a good conservative man with much experience who understands you need to be the best before you can be first. I know some people wanted a "rock star BIG NAME CEO" but I disagree. What the company needed was someone who understands what the issues are and can correct them. If any of you read the telecom rags you would have seen his interview about 3 months ago. He knows exactly what the issues are and he will be better at running Sprint than he was at EQ. Good times are ahead.

2007 Dec 20 03:32 PM

[notexactly:]

No it isnt. They need someone who is not from a CLEC or other phone monopoly giant running things. Someone who doesnt operate a company like the government operates the country. Way too many people doing nothing, and firing the people who are actually doing the work. Way to go. Lets hire some more Multi million dollar leadership who can leave in 3 years with an 80 MILLION dollar bonus.

2007 Dec 22 01:41 PM

[notexactly:]

Start hacking down the GIANT OVERLAND PARK SPRINT HANGER-ONS THAT JUST WONT GO AWAY, and dont really have a job but keep collecting paychecks putting this company into more and more debt because SPRINT for whatever reasone things that KANSAS of all places is the center of the universe and people really give a SHIT what goes on there!!! ridiculous. Youll be owned by Verizon soon enough. If NEXTEL was SMART they would build a TIME machine and go backwards and ASSASINATE the BONE heads who ran the MERGER...

2007 Dec 22 01:44 PM

[your dad:]

Interesting opinion. I ask that you back it up with fact. You haven't even given the new guy a chance.

2007 Dec 24 12:11 PM

[xnext:]

I agree with notexactly, OP and the labyrinthian, overmanned, overpaid, myopic bureaucracy is the root of Sprint's problems, not to mention their systematic purge of legacy Nextel employees. The board wanted Hesse because he'll preserve the OP bureaucracy, and is a retread. They're more concerned about the KC economy then about improving customer service, increasing subscribership or enhancing shareholder value.

2007 Dec 24 01:01 PM

[your dad:]

xnext, what you just said means NOTHING. Why dont you bring it with some fact rather than your weird opinion. I read your posts and I happen to know that you would only have been happy with TD. You paint this awkward picture of exactly how OP and KC works but I don't think you really know. What purge of Nextel people are you talking about? What is over manned and who is over paid? And if it really is over manned why are you talking about purging people like its a bad thing? How is he a "retread" It seems you know little about Hesse. But here you are agreeing with a guy who wants people assassinated and types WORDS in CAPS for NO reason. Then complaining that sprint operates like an RBOC while complaining about the guy who ran a CLEC?

xnext, This is how your posts sound: you sir are a limp wisted liberal fagot. And barring some miracle of intervention, like the story of the man who wrote amazing grace you will continue to be a limp wristed liberal fagot. and your posts just rant on and on like that over and over again.

After reading posts here from people who I can only assume are or were Nextel, I now feel that the purchase of Nextel was the worst thing Sprint could have done. If the merger had never happened I dont know where Nextel would be today and I dont care. But with people like this, who display attitudes as seen above in the company, its doomed to fail. And to think that would actually make them happy in some morbid way. huh.

2007 Dec 26 02:38 PM

[xnext:]

Thanks Dad. Having spent years with Nextel, then several months working for the OP gang, I would get writer's cramp documenting the stark differences between the two companies. In my case, there was a nearly 10:1 ratio between the legacy companies' manning for an identical department. Process implementation took 18-24 months at legacy Sprint, as opposed to <6 months for legacy Nextel. My OP bosses were more interested in budgets and superfluous metrics, then network integrity. Not to mention the blatant, bald-faced lies I was told. Of course, after I called them out for their lies, I was black-balled. The Nextel manpower purge was primarily due to most positions being located in OP. Legacy Sprint personnel were not affected by the Nextel acquisition. We were told, "move to OP" and we'll have a job for you, knowing full well people could not move due to familial responsiblities and home sales. This was a cynical and disingenous move to eliminate Nextel personnel. Moreover, who'd want to move to OP/KC? It's a one-horse town, and considering legacy Sprint's penchant for quarterly layoffs, you'd have the potential, especially as a legacy Nexteler, of being stuck there with a new home, and little or no job prospects. But hey, Sprint acquired Nextel and could do with it what they wanted; and you're seeing the results. Glad I'm not with them any more. Been gone two years, and every bad thing that has happened, was predicted by us laid off legacy Nextelers. No gratification in that, just sadness and exasperation.

2007 Dec 26 08:22 PM

[xnext:]

Oh, and Dad, I take it you're an elitist, racist, laissez-faire capitalist, homophobic, theocrat and think GWB is a competent POTUS? Considering the mindlessness and vitriole of your remarks, name calling is all you have left. If you're Sprint's and KC's defender, they have serious problems.

2007 Dec 26 08:27 PM

[xnext:]

Hey Dad, can you qualify the limp-wristed faggot remark? Because I criticize my former employer and lament its demise? You sound like a typical right-winger who can only respond to the opposition by using insults, since your views have no credibility. I guess those years in uniform, and months in combat, away from my wife and children make me less of a person than you.

2007 Dec 27 09:01 AM

[your dad:]

Most of your comments are not deserving of a response from me or anyone else. I will say that the last round of layoffs hit mostly Legacy Sprint employees. What you are saying is that Sprint offered you a job and you declined it. How can you fault them for that? Sorry you feel entitled to something and I urge you to change or you will be disappointed forever.

2007 Dec 27 11:43 AM

[xnext:]

I was told, "move to OP" and we'll have a job for you. No mention of salary, relocation assistance or what that job would be. That's not a job offer, nor was anything provided in writing. I didn't feel entitled to anything, but professional courtesy and respect; got none. It's OK for your to spew your insults and venom, but when you get it back, you can't or won't respond. Talk about limp-wristed; typical right-winger. Like your midwestern hero Limbaugh, why don't you have some oxy with your whine.

2007 Dec 27 12:06 PM

[your dad:]

I didn't insult you I asked you specific questions which you are unable to answer...

2007 Dec 27 09:26 PM

[xnext:]

OK....guess we'll have to agree to disagree. Good luck.

2007 Dec 28 09:41 AM

[Stachey:]

"I will say that the last round of layoffs hit mostly Legacy Sprint employees."

Sure, maybe numbers but not percentages. Interestingly, all three people in our department who were layed off (VP, Director and Staff) were Leg-NXTL. That's when I decided to get the heck out.

2007 Dec 28 12:34 PM

[User 134216:]

"I will say that the last round of layoffs hit mostly Legacy Sprint employees."

Sure, maybe numbers but not percentages. Interestingly, all three people in our department who were layed off (VP, Director and Staff) were Leg-NXTL. That's when I decided to get the heck out.

2007 Dec 28 12:35 PM

[xnext:]

What dept were the laid off people in? Were they at the campus, Reston or elsewhere?

2007 Dec 28 02:31 PM