Sprint’s announcement last week that 2007 revenues will be flat is disappointing. The news is disappointing because I believe that Sprint’s vision for wireless in the long run is good (for instance, utilizing all technologies 3G, WiFi and WiMax to deliver broadband everywhere). However, it will be interesting to see if shareholders can keep their patience with the company as it works out its kinks and struggles to keep pace with AT&T and Verizon.

Everyone can read the financial reports — they are not good. For instance, the company is struggling with high churn (over 2 percent) and lower voice ARPU (average revenue per user). I think a greater problem is a lack of leadership at the top and morale among employees. It is no wonder that Tom Donahue (the former CEO of NEXTEL) left the company. Tom would have been a great person to lead this company going forward.

Sprint needs to get back to basics sooner rather than later. The differences between Verizon and AT&T are becoming more pronounced in the market.

Here’s some advice -

  1. Bring back a little Nextel – Nextel was creative in the marketplace and successful on Capitol Hill. Nextel had a product (push-to-talk) that was an industry leader. Other companies that have tried to emulate Nextel’s push-to-talk have not had the same success. Consumers loved their Nextel phones and promoted them. Seems to me that Sprint has tried to get away from the Nextel culture and is being held back by its old legacy landline culture.
  2. Reduce the churn – Ignoring consumers in the wireless business is a recipe for disaster. Sprint needs to reinvigorate its marketing and take care of their network problems asap. The perception on the street is that the network is not strong.
  3. Focus, Focus, Focus – Sprint is all over the place and is juggling a bunch of business initiatives. WiMax build-out, EVDO-Rev A upgrade, wireless wholesaler to MVNO’s (which is actually bringing more subs than Sprint), Mobile TV (Stream and Broadcast), and rebanding the 800 MHz spectrum. With regard to the reband, this effort has taking much longer and has been more costly than Sprint originally expected…

Industry buzz in the wireless business – good or bad – means a great deal. Mobile Mojo is vital and viral in the marketplace. Sprint may want to consider bringing back the guy in the black raincoat!