Sprint CEO Marcelo Claure and Chairman Masayoshi Son have spent the last month and a half proclaiming that they have faith in Sprint and its turnaround efforts, with SoftBank snapping up shares in a show of confidence. However, some in the investment community are not as sure, and Moody's Investors Service downgraded its credit ratings on Sprint, saying that the carrier is not doing enough to right itself.
For the last couple of years, some have viewed Sprint as the Rodney Dangerfield of wireless. Indeed, the carrier has seen mostly negative press and perception ranging from subscriber losses to poor network execution to unfortunate technology selection, to M&A problems, and the list goes on. Add in a negative macroeconomic environment, unprecedented competition and some bad luck contributed to keeping Sprint down. Here's how I think Sprint got to its "no respect" predicament.
Softbank mobile customers will be able to sign up for Netflix service once the SVOD provider launches in Japan: the companies announced an agreement that makes it easier to subscribe to and pay for the online video service.
Sprint CEO Marcelo Claure, who took the helm at the carrier a little more than a year ago, is giving himself three to five years in total to turn around the company.
Sprint parent SoftBank bought around $87 million more shares in the carrier, a sign of confidence that SoftBank is standing behind Sprint as the company continues its turnaround push.
Over the past year top executives from Sprint parent SoftBank floated the possibility of selling Sprint to both Comcast and European telecom firm Altice, according to a Wall Street Journal report, which cited unnamed sources. The efforts never went anywhere and SoftBank CEO and Sprint Chairman Masayoshi Son has firmly backed Sprint, but turning around the carrier has been anything but smooth for Son and SoftBank.
Sprint parent SoftBank considered selling Sprint at one point but is resolutely backing the carrier now, according to SoftBank CEO and Sprint Chairman Masayoshi Son. Meanwhile, financial analysts are divided around how much the leasing arrangements for handsets and network gear Sprint and SoftBank are creating will help Sprint.
Former Sprint CEO Dan Hesse said he regrets causing so much disruption to Sprint customers' service as Sprint plowed through its Network Vision network modernization in 2013 and into 2014. However, he said despite the pain for customers, which was more than he had anticipated, Sprint's network upgrade laid the foundation for what will be a "spectacular" network.
Sprint shook up its senior executive team and said that CFO Joe Euteneuer will be leaving the company and will be replaced by Tarek Robbiati. The carrier also brought in a new executive, Günther Ottendorfer, to be COO of technology. Sprint also promoted John Saw to be CTO, replacing Stephen Bye, who left the company late last month.
ASPEN, Colo.--Softbank made a big bet when it bought 80 percent of Sprint for $20.1 billion in 2013 and a top executive at the Japanese operator said today that the company is poised to make a turnaround, led by CEO Marcelo Claure.