So long Sprint. It’s been nice knowing you over the last several decades. After the merger with T-Mobile, things are moving very quickly. In fact, faster than anyone guessed when the merger was being negotiated. T-Mobile says they plan to shut down the Sprint brand name in August. That’s just a few weeks from now.
So, what can we expect next from the new T-Mobile?
Let’s take a closer look at Sprint, their history, and what they did right and wrong that led us to this sad moment in wireless history. And let’s take a look at the next steps for T-Mobile.
Sprint moved from long distance to wireless
I started following Sprint decades ago when they were just the small number three long distance provider after AT&T and MCI. You remember those good ole days. That was when there were seven Baby Bells or local phone companies and three big long-distance companies. That was back in the days when local and long-distance were separate and did not compete.
Believe it or not, even though Sprint never rose above number three, they were a real American success story that had been around more than 100 years. Over that time they changed names many times and grew along with the changing telecommunications industry.
Past Sprint CEOs: Bill Esrey, Gary Forsee and Dan Hesse
Bill Esrey was CEO of Sprint when it was in the long distance business and changed over to wireless. The company was popular, but just could not hold a candle to AT&T and Verizon. In fact, that was the cases throughout Sprint’s long history.
When the company needed fresh vision, they hired Gary Forsee as CEO. Forsee came from Bell South, one of the seven Baby Bells. He acquired Nextel just before the entire industry switched from analog to digital.
That move was the death nell for Nextel. And what started out looking like a great move became an albatross around their neck for Sprint Nextel for years to come.
Dan Hesse did a remarkable job saving then growing Sprint
Now, the company was in even deeper trouble. That’s when they hired Dan Hesse as CEO. Hesse came from AT&T. He had been with the company forever. He ran the AT&T wireless business for several years.
When Hesse came to Sprint it was dying on the vine showing huge losses with no light at the end of the tunnel.
What was amazing is Hesse saved Sprint from disaster. He worked hand in hand with the Sprint executives, workers, investors and customers. First, they first stabilized and then grew the business once again.
In fact, Sprint was winning all sorts of quality and reliability awards and it looked like they were finally on a winning path under Hesse.
Softbank acquired Sprint
Then Softbank stepped in and acquired Sprint and that was the beginning of the end, once again.
Masayoshi Son is an aggressive businessman who wanted to enter the US wireless industry and change everything overnight. He had massive plans for growth. Plans which ultimately never came to pass.
Between Masayoshi Son and Marcelo Claure, who he hired as the next CEO, they drove Sprint deep into more trouble than ever before.
The company had loads of wireless data spectrum, which is like gold to wireless carriers. However, they could not market the service to save their lives.
Sprint was in trouble once again. They tried to acquire T-Mobile. They had to do something in order to survive.
That’s something that took several years and several efforts, but it was finally accomplished a few months ago. Accept T-Mobile acquired Sprint because they were losing so much value, so rapidly.
Mike Sievert new CEO at T-Mobile
Now John Legere has retired as CEO of T-Mobile. He has been replaced by Mike Sievert. The Sprint CEO is no longer needed.
T-Mobile was a strong marketing company with very little in the way of wireless data spectrum. Sprint has loads of wireless data spectrum, but weak marketing.
The two companies together finally have what they need to compete. Now they finally have the raw materials that AT&T Mobility and Verizon Wireless have.
It will be good to see what the new T-Mobile can do in the marketplace. How successful they will be with all of Sprint assets. The merged company has the strength of both companies in one.
So, we will finally see what Mike Sievert the new T-Mobile CEO can do with all the wireless spectrum that Sprint brings to the table. The next year or two could be exciting.
We have not seen much yet. However, I expect to see action from this newly armed competitor.
So long, Sprint. Good luck, T-Mobile
With all that said, Sprint, one of the historic, strongest and best-known brands in the wireless business will be disappearing in the next few weeks. The company won’t disappear. It will move forward as part of T-Mobile. However, the name and brand will fade into the sunset.
So, Sprint, it has been nice knowing you and all the executives over the years. You were a real wireless player in Kansas City, the heartland of America.
Next, I am looking forward to seeing real, new growth will happen under Mike Sievert at T-Mobile. Good luck to the new team and the new company.
