I don't know what to make of the apparent coincidence of the news of Dan Hesse being named CEO of Sprint Nextel, and a story about same being reported pretty deadpan in, of all online new sources, Pravda. Hesse's got his work cut out for him at Sprint Nextel, but at least he's got some background in the wireless business from a stint at AT&T Wireless Services. In the wireless industry, Hesse's better known for being lured from AT&T Wireless Services to become CEO of Terabeam Corp., a Seattle-based company that tried to pioneer 1 Gbps Internet connectivity from rooftops to windows in urban areas using innovative new optical technology. Terabeam is still a bit infamous in the Seattle area having gone through tens of millions in venture capital before ignominiously selling what little remained of its technology and its name to a scrappy, rapaciously ambitious vendor of Wi-Fi technology then called YDI Wireless, who went on to purchase Proxim out of bankruptcy.
I don't expect much from Hesse. His quote in the Sprint Nextel press release is hardly stirring: I am honored and excited to lead Sprint Nextel at this important time in its history. There is no company in the wireless industry with a stronger set of assets. I believe through solid execution and commitment to our customers we can reinvigorate our operating performance and return the company to a growth trajectory. We will review every aspect of our strategy as we intend to lead Sprint to the forefront of the wireless industry. I expect that the first order of business for Hesse is to jettison the "distraction" of its 2.5 GHz spectrum and Mobile WiMAX effort, now initially underway in Washington, DC, Baltimore, and Chicago. Then he has to deal with the Nextel 800 MHz "rebanding" mess from legacy Nextel, rationalize its many disparate Mobile Virtual Network Operator (MVNO) deals including being the carrier for Amazon's new Kindle eBook. My advice - 1) Quickly make a deal with Clearwire and/or Google for the Sprint Nextel 2.5 GHz spectrum holdings, even if it has to take the form of a long-term lease through a new subsidiary, 2) Embrace and aggressively promote Sprint's growing positive reputation among the Digerati for pretty good always-on, pretty-much-unlimited Broadband Wireless Internet Access with its 1xEV-DO Rev. A services, 3) Consider getting out of the direct-to-consumer wireless handset business; surrender that messy, low-margin, high-overhead business to MVNO's in favor of pursuing enterprise and government accounts, especially those that want bundled voice and Broadband Internet Access.
By Steve Stroh
This article is Copyright © 2007 by Steve Stroh except for specifically-marked excerpts. Excerpts and links are expressly permitted (and encouraged).
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