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Sprint Charging $10 Fee to Nextel Subs Who Don't Upgrade

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Hesse Making Lemonade Out of iDen Lemons

MadFatMan

Nov 28, 2012, 8:59 PM
The acquisition of Nextel eight years ago was one of the top ill conceived mergers of modern business history to paraphrase Forbes magazine at the time.

Hesse walked into a nightmare (as iDen was not Sprint's only issue at the time he took the helm by far) and took action and turned the sinking ship around.

- Increased Subscriber Base
- Took the CSAT from dead last to be tied with VZW for 1st.
- Increased RPU
- Decreased Churn Rate
- Not only lowered the Port out rate but have been migrating subscribers steadily fron AT&T and VZW.
- Turned a profit (positive contributions to the EBITDA and OBITDA)
- Raised Net Promoter Score.
- Raised Stock value from nearly being junk bond status

Offloading Nextel iDen dead weight is one of ...
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cellphonesaretools

Nov 29, 2012, 2:45 AM
MadFatMan said:
Kudos Mr Hesse for being the driver of these successful changes!


You forgot to mention that Sprint LOST 16 MILLION CUSTOMERS, most of them AFTER Hesse took over.

Some improvements in customer service have happened, but when you consider that Sprint was always in the cellar and dead-last in customer satisfaction, Hesse had no place to go but up. Further, when you consider that before Sprint took over Nextel was always first in customer satisfaction or tied with VZ for first, neither Sprint nor Hesse should recieve unabashed kudos from you or anyone else, you should also be asking how & why they let Nextel go from always being number one in customer satisfaction to driving 16 million valu...
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MadFatMan

Nov 29, 2012, 7:06 AM
You sound like a jaded Legacy Nextel employee.

By the time Hesse took over the damage had already been done. Forsee had already screwed it up beyond recognition.

I am glad to see Nextel go by the way of the Dodo. Darwin has spoken.

The loss of this inefficient, clunky, dated technology and business model will not be missed for the pain in the neck that it is and now was.
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jrfdsf

Nov 29, 2012, 6:55 PM
MadFatMan said:

...By the time Hesse took over the damage had already been done. Forsee had already screwed it up beyond recognition...
I agree with this statement. The merger was completely mishandled from day one. I lay the blame on Forsee and the other incompetents running Sprint in 2005.

MadFatMan said:
The loss of this inefficient, clunky, dated technology and business model will not be missed for the pain in the neck that it is and now was.

Here's where I disagree. Nextel was the most successful wireless business in the industry. Their "clunky" business model, as you put it, is being emulated by the two major carriers. At&t just released their version of PTT advanced t
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cellphonesaretools

Nov 30, 2012, 12:33 AM
MadFatMan said:
You sound like a jaded Legacy Nextel employee.
...
The loss of this inefficient, clunky, dated technology and business model will not be missed for the pain in the neck that it is and now was.


Never worked for any telecommunications company. Never owned any of their stocks, so no financial interest in their market performance. "Just" a long-time Nextel customer, that's all.

You keep repeating the same mantra, slightly different wording but the same dull message. You obvioulsy have no grasp of the FACTS regarding Nextel's performance pre-Sprint, nor do you have any credible knowledge of their business plans. So your simple, repeated, mantra is meaningless.

As the famous saying g...
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Cellenator

Nov 30, 2012, 6:44 PM
Laughing Laughing Laughing Laughing Laughing
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Jarahawk

Nov 29, 2012, 8:37 PM
So iDen really wasn't a dead end technology? Hmmmm...wonder why they wanted to be bought out so badly then?
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cellphonesaretools

Nov 30, 2012, 12:21 AM
In terms of PTT, iDEN is actually more efficient (and far more reliable) than any of the PTT emulators now running at Sprint, ATT & Verizon. iDEN was no good for data, and the 800 MHz spectrum Nextel owned was maxed out in terms of subscriber capacity, those are indeed facts, and ones that Nextel was keenly aware of.

To that end, Nextel already had plans for, and was indeed in the process of running, real-world regional trials, of Flarion for high-speed data (a forerunner to the current WiMax & LTE data systems in use today), and the 1900 MHz specturm they owned was already slated for their eventual switch to CDMA for voice. So the facts are that Nextel was years ahead of any other US carrier in terms of pushing the boundaries of high-s...
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Jarahawk

Dec 1, 2012, 8:38 PM
Yes. They had plans which were going to cost money versus cashing out and who cares what happens to what was at the time the most loyal subscriber base in the nation. I never knock greed... I just like to shine a bright light on it and point out hypocrisy.
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cellphonesaretools

Dec 2, 2012, 2:54 AM
It definitely takes two to tango. Sprint wanted Nextel's resources, and the BOD & shareholders of Nextel were indeed in it for the money.

That said, in my guesstimation the combined company would have been much better off to have immediately dumped Forsee and let Tim Donahue run the show. I think everybody would have been much happier, and I believe the $30 billion write-down in value would never have happened. There still would have been difficulties, but operationally & culturally Nextel was so much better than Sprint, we'd all be better off had Donahue taken the helm.

But as you implied, he took the money & ran, and it's all water under the bridge now.
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T Bone

Nov 29, 2012, 5:58 PM
They haven't made a profit yet, the best they've been able to do so far is just to reduce the losses.....unless they made a profit in Q4 2012 and I haven't read about it yet, which seems unlikely given how closely I follow wireless industry news.
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insider.

Dec 1, 2012, 6:14 PM
Q4 2012 is not over until 12/31... ?
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