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Following on the release of financial reports outlining Sprint’s drain-circling demise into red-ink hell, Sprint’s CEO Dan Hesse has made some significant moves to help stem further losses. The troubled chief has decided to lay off about 4,000 employees across the US and plans to close retail store locations as well as cutting monthly wireless rates in an attempt to gain back some of its 1+ million lost subscribers last quarter.
While the No. 3 US carrier has managed to secure its WiMAX-future in its partnership with Clearwire, it’s future as a Big-Three voice-network operator hinges on Sprint’s ability to claw its way back to profitability. As such, Sprint’s Hesse is considering selling off company assets as well as securing new credit terms.
Nextel could also see itself set loose from Sprint’s grip, but Hesse mentioned that selling off the iDEN network side of its business would involve “significant complexities.” And, the $36 billion acquisition of Nextel would likely only net Sprint something like $5 billion in today’s market – a huge loss indeed, but $5 billion is still $5 billion that Sprint is badly in need of.
We’ll have to wait and see how the new cost-cutting measures, combined with moves to recapture lost customers, helps out Sprint’s bottom line.
[Via: Bloomberg]
About The Author
Will Park
Will hails from The City of Angels - Los Angeles, California. He spends his time playing with his numerous gadgets and looking forward to seeing what future holds for mobile technology. An avid promoter of a fully "digital" life, he promotes the widespread adoption of truly mobile, paper-less living. He dreams of the day when he can go completely digital. No more snail mail, paper receipts, bound books, notepads/spiral notebooks, credit cards, hard currency. He's a digital warrior - fighting for the converged life. He is an idealist and a realist - he has a perfect view of what the world should be but knows that the world is not perfect. Can we ever hope to see Will's dream become reality? We'll see...
