[qi:026] In the third quarter of 2007, Reston, VA-based Sprint Nextel (S) announced that it will lose approximately 337,000 subscribers. Make that 337,001, the last minute addition being Gary Forsee, the CEO was has taken the fall for all that has been plaguing the third largest US mobile company. Of course when you get paid $21.6 million a year, well getting the boot comes with the gig.
Wall Street has been baying for blood for a while now, thanks to mounting subscriber losses. Yup, that’s right, the very same Street that rejoiced over Forsee’s appointment as the savior of Sprint. The same Street that threw a party to celebrate the ill-fated coupling on Sprint Nextel.
The very same Street that popped the champagne when Sprint spun off Embarq – even though everyone knew triple play was the way forward. Lately, the Street has been questioning Sprint’s decision to bet on WiMAX and work its way out of the iDEN-CDMA mess.
This is a movie that plays time and again. Remember all the negativity around Verizon (VZ) FiOS and how expensive an effort it was. Well, the tune has changed in recent days. It happened with the old AT&T (T) when Michael Armstrong, the then CEO paid too much attention to the Street and didn’t follow through on his quadplay strategy.
Can Forsee’s successor turn the ship around? I am not sure. Sprint is in transition, and if their WiMAX xOhm strategy is given a chance, then Sprint can be back on top.