Tuesday, October 9, 2007
Things seem to be in turmoil at Sprint
I see signs that Gary Forsee being forced to resign at Sprint (or at least he bailed when he saw that the board was looking for a replacement) has thrown Sprint into turmoil. Initially, the move may have pushed the stock up, but now it is falling, just a day later. We have a hard time telling how much of what has gone wrong was his fault, and how much was just structural. From my perspective, replacing the "old time" Sprint executives with Nextel executives was a good move. Some really destructive initiatives were halted with the move, such as the largely failed outsourcing to India. What has been bad has been decision to not bid on the Networx Universal contract and then to dump customers that needed more customer service time than others. The long term issue with Sprint is customer service, according to my sources. I agree with the investors that they need to fix their core business issues, and do it fast.