Sprint Nextel: Paddles….Clear!!!!

Is There any Life Left?

Sprint Nextel-I know the 8 of you that read this blog think I have a negative leaning in my posts, but it really is the sign of the times. I can be positive and look for the silver lining in a story.

But not this one!

Add me to the 776,000 customers that decided to give up on this mess of a telecom this quarter. That’s right, almost a million people walked out the door and into the loving arms of other, more reliable carriers like Verizon, who gained 1.5 million customers in the same period.

Other carriers relied on hardware to push their subscriber growth. AT&T added 1.33 million due in part to the exclusive arrangement with Apple to sell the ever popular iPhone.

Where did everyone go?

Sprint Nextel has just about 52 million subscribers, down 2 million from the previous year. The average monthly revenue per user remained around the $56 range, but that too, should see downward pressure in the current economy.

Then there’s Nextel

That’s right, the red-headed step-child of telecom. The integration of this 90’s wireless darling into the Overland Park crowd has been anything but seamless. Technology spats and philosophical differences made this merger of equals a challenge from the start. Throw in the fact that Sprint didn’t understand the Nextel customer for the first two years and you have yourself a fantastic bowl of screwed up stew.

To make matter worse, after years of stutter steps, it seems like Verizon has managed to get their push-to-talk system (the backbone of Nextel’s service) fully functional and is launching attacks at Sprint’s flank.

All this while Sprint goes to the ATM machine to withdraw $3 billion dollars. Now, I am no math major, but you have to ask yourself, for a company that throws off almost $35 billion a year and still needs to raise $3 billion, means to me that CEO Dan Hesse needs to get in with the boys in accounting and start mixing it up!

Can you hear me now?

In conclusion, I have one bit of advice to Mr. Hesse, instead of strolling down a deserted street in Manhattan telling me about how great this company can be, just sell this pig to SK Telecom and get on with it.

You guys have been dancing around this merger for years and you owe it to your shareholders to create some value. Divest Nextel, get things fixed up with WiMax, and start looking at your expense reports…they are pretty padded!