Forsee Steps Down As Chairman, CEO of Sprint Nextel

xenophon · EVDO Addict Joined: 30 Aug 2005 Posts: 2004

From the WiMAX industry perspective, it would probably be best for them if Sprint sold off the Xohm group to someone interested in the industry, like Google or even Intel. But Sprint would be foolish to let that go.

Sprint is now under the control of short-term minded investors. They don't care if they destroy Sprint if they can chop it into pieces for more short term gain. If they give up Xohm and/or the spectrum, they are insanely thinking Sprint could continue down the traditional cell biz model and actually win customers back. Well there isn't much growth left in cellphone market so you have to grab them from competitors. That plan is much riskier than spending $5B on WiMAX.

They need a new model that is a paradigm shift. WiMAX is the only chance they have to offer something different from their competitors - and something their competitors will not be able to match for years. If Sprint gives up that spectrum, they'll head down a downward spiral. And the stakeholders won't care as long as they profit and then get out.

If common sense and compromise win in the end, we may see a slower rollout of WiMAX by Sprint. Otherwise, I'd love to see Google buy the Xohm division.

xrayman · Posted: Wed Oct 10, 2007 10:19 am Post subject:

Most of the financial news articles I have read today summarize the Sprint XOHM project using the buzz words: New unproven technology or risky venture. It is good to see at least one analyst at the Stanford Group make the statement, "Sprint should not spin off WiMax because it gives the company a technological edge over other service providers."
One can hope the new Sprint CEO will have some insight about what it will take to make Sprint a viable company in the long run. Not someone that will rubber stamp the wishes of some of the Sprint board members and Wall Street to sell divisions for a short term profit.

Fox McCloud · EVDO Junkie Joined: 02 Dec 2006 Posts: 618

I have to pretty much agree with you...though I absolutely detest the idea of Google getting a hold of XOHM. Why? While they could easily combine it with others service, ultimately I see a dimly lit tunnel filled with Google advertisements, propaganda, recorded searches, and the like. I wouldn't trust Intel with XOHM either.

About the only company I'd half-way (if that) trust XOHM with would be Clearwire....at least they're not connected up (per se') with anyone else...and deal specifically with WiMAX.

xchpstang · Posted: Wed Oct 10, 2007 5:22 pm Post subject:

It is hard to fault the investors. The technology is unproven and Sprint promising a very slow rollout especially compared to EVDO. Think about it. From Sprint's first EVDO Rev 0 test markets in the spring of 2005 to the fall of 2007 they went from 0 population covered to covering 220 million plus with now EVDO Rev A. Wimax promises an underwhelming rollout to a mere 100 million in the same amount of time. Then they talk about having to build out completely new infrastructure, nothing from any of the current Sprint networks will be reused per se. Then, to top it off, the first demonstration of a live Wimax network in Chicago was not exactly mind boggling. 3+ Meg per second is decent by any standard but just pales compared to any wireline offering and is not a quantum leap from EVDO Rev A or HSDPA speeds.

xenophon · EVDO Addict Joined: 30 Aug 2005 Posts: 2004

On performance, I don't think it's what matters as long as it's reasonable for most users. If EVDO and WiMAX had the exact same performance, WiMAX still has more advantages since it could be easily/cheaply deployed on any consumer device, could be self-marketing (see Best Buy scenario on page 1), has no royalties and has broader industry support than cell-based networks. You typically can't buy a new laptop today w/out WiFi. If Intel has their way, you won't be able to buy a laptop w/out WiFi/WiMAX in a couple years.

On cost, I could understand investors finding it too risky. Maybe Sprint should split off the Xohm group that Sprint has a majority ownership of, but allows Intel to own say 20%, Google/Samsung a portion as well as others willing to buy Xohm stock. They could spread this risk with others knee deep in the WiMAX industry. Maybe that's the best compromise.

The timing of coverage is indeed a challenge but not re-using the existing network is a benefit in the long run, getting away from legacy networks. The future is wireless data built for data, not a transition voice network to data that still has legacy voice ties.

Back on performance, I'm trying to figure out who needs more than 5Mbps. I got rid of my 5Mbps cable modem for just EVDO. Only issue I have is when trying to stream high quality video. WiMAX at 2-4Mbps, lower latency and better QoS should improve that. Most consumer devices with WiMAX won't need much bandwidth (a streaming audio player only needs 200Kbps at most. A Garmin GPS updating maps doesn't need massive bandwidth). I'd bet that 2-4Mbps would meet 90-95% of most user needs for most mobile devices.

But I could be wrong. Anyone have FIOS? What do you actually use the extra bandwidth for? P2P?

CraigCraig · EVDO Heavy User Joined: 15 May 2007 Posts: 142

Someone mentioned that the roll out for WiMax would have been underwhelming with a coverage of 100 million potential users in the same time Sprint took to cover 220 million users and there is, IMO, a big BUT due.

I'm no expert but if I understand it correctly 100 million potential WiMax users does not mean 100 million connections. Given the capabilities of WiMax it could mean 500 million connections (and more) as an endless number of devices would be able to connect to the Web without user intervention. Of course these wouldn't all be high use, high cost connections but they could give Sprint a massive advantage over it's competition.

Regarding the speed of WiMax as shown by Sprint's Chicago demo...isn't it true that the speed of WiMax depends more upon the backhaul than the WiMax equipment in the hands of the consumer?

Forsee's departure from Sprint might very well result in the end of the company. It appears that Sprint might blow a huge opportunity and competitive advantage that would not boost revenues for the next quarter in favor of dismantling the company and old "proven" but near obsolete technology that investors think they understand.

In the end the only winners might be the exec's with compensation packages that give them millions even if they kill the company.

Fox McCloud · EVDO Junkie Joined: 02 Dec 2006 Posts: 618

xrayman · Posted: Thu Oct 11, 2007 12:50 pm Post subject:

On Tuesday AT&T announced it would purchase spectrum licenses in the 700-MHz spectrum in January from Aloha Partners for $2.5 billion.
http://www.newsfactor.com/story.xhtml?story_id=0210022CB5XC
With Sprint's plans for a WiMAX network AT&T must feel the need to secure spectrum for a new G4 network. They must be planning on bidding in the upcoming FCC auction for more of the 700-MHz spectrum.
If Sprint drops or slows deployment of the XOHM network AT&T could be set to take the lead in the broadband wireless market.

xenophon · EVDO Addict Joined: 30 Aug 2005 Posts: 2004

http://www.thestreet.com/s/sprint-shuffle-squeezes-intel/newsanalysis/tech-update/10383826_4.html

xrayman · Posted: Sat Oct 13, 2007 10:10 am Post subject:

Forsee will remain on the Sprint payroll until Jan. 1. and his severance package could total $55 million, according to article in Kansas City Star.
http://www.kansascity.com/382/story/314601.html

An upgrade by Wachovia Capital Markets LLC analyst Gray Powell, gave Sprint stock a small boost on Friday.

xrayman · Posted: Fri Nov 30, 2007 9:57 am Post subject:

Sprint rejects proposal to install ex-chairman as CEO

jackrodgers · EVDO Addict Joined: 23 Mar 2006 Posts: 1131

xrayman · Posted: Fri Dec 07, 2007 8:26 am Post subject:

Sprints future in limbo as search for new CEO continues

Michael · Posted: Tue Dec 18, 2007 8:19 am Post subject:

xrayman · Posted: Tue Dec 18, 2007 3:20 pm Post subject:

During the last couple of weeks rumors were running all around Embarq that Dan Hesse was going to be the new Sprint CEO.