Sprint's Dan Hesse talks Android, Pre, iPhone, 4G on Charlie Rose
By Chris Ziegler 
posted Sep 11th 2009 8:44PM
posted Sep 11th 2009 8:44PM
- "We're getting ready to launch a couple of new Android devices." We know one's the Hero, and the other -- if we were the betting types -- is the Samsung InstinctQ.
- Rose: "The merger with Nextel was a bad idea?" Hesse: "In 20 / 20 hindsight, it was, yes... the premium that Sprint paid for Nextel was too much." Sprint's gone back and forth on the idea of spinning off Nextel over the past couple years, so it's not a surprising thing for him to think -- but to hear Sprint's CEO actually say out loud that he thinks a very active part of its network shouldn't have become part of the company is a little bombastic.
- "Our prepaid brand is Boost." Nothing wild and crazy about that statement, though it does reaffirm that Virgin Mobile is destined for assimilation. The whole thing's kinda funny considering that Boost dabbled in CDMA before reversing course, and once again, Sprint will be dealing with large installed bases of both iDEN and CDMA prepaid customers.
- On touchscreen smartphones: "Those are the most expensive phones for us to sell, and those are the ones where we need to make sure that the customer stays with us [and] doesn't churn, because we're out a lot of money... those are expensive devices." Theoretically, an aggressively-priced subsidized smartphone could still end up leaving a carrier in the red if you broke your contract early on and paid the ETF, but we doubt that's a huge problem -- especially for a CDMA carrier like Sprint. He goes on to say "I'm already looking at 4G versions of smartphones," so that's really encouraging to hear, particularly if you're into WiMAX.
- "Customers will pay premium for simplicity. Simplicity is everything... Digital One Rate which we launched back at AT&T, that was all about simplicity... people paid more. It wasn't a price cut." Translation: "Unlimited makes you feel like you're getting a deal, but rest assured, we're banking."
- In response to Rose asking how Sprint uses the Palm Pre to take on Apple and RIM: "It was really kind of Palm's decision to take on Apple. And Palm has had [a] long standing relationship with Sprint." It's interesting to hear Hesse seemingly back away from a fight with Apple and chalk up the situation to happenstance -- RIM not as much, considering that Sprint carries a number of BlackBerrys in its lineup and will certainly continue to do so. Talking more about pitting the Pre against the iPhone, he goes on to say that Palm's handset is "doing well. But you've got to almost put the iPhone, to be fair, in a separate category. The Apple brand and that device has done so well. It's like comparing someone to Michael Jordan." If that's not a tactful acknowledgment that the iPhone is a bona fide wireless superstar, we don't know what is. Hesse's giving the iPhone the respect it's rightfully earned -- as any strategically-minded executive would.
- "The biggest impediment to mobile growth is you got processors are getting a lot faster, screens are getting sharper, they use more and more power, and battery technology is not moving very fast... That's the one breakthrough that the industry needs. It needs battery breakthroughs." It's good to hear that Hesse understands as well as everyone else that the wireless industry needs to be focused on making power draw a non-issue, but he sounds less convinced of the solution: "I don't know. Solar we hope, and renewable energy sources." When Sprint gets some cash socked away, it might consider throwing some R&D money at the problem -- it'll be first to market with something resembling a "national" 4G network, after all, and the situation's only going to get worse.
i think sprint will have iphone next!
Oh my gosh, if Sprint had the iPhone on WiMax....... *dreams*
I'll take a Palm Pre 4g instead. *dreams*
4G to the rescue.
Both VZN and Sprint basically put all their hopes in the 4G basket. Maybe, just maybe, then they'll be saved from their drab CDMA phone predicament. They all need the iPhone.
Hesse's comment about the iPhone makes me believe there's still some life left in Sprint. Sound like he will take action and get it ASAP, by any means necessary. Either getting Apple to build a CDMA version, or with 4G...
I'm not a hundred percent sure but if I remember right, I believe AT&T has a 5 year exclusive contract for iPhone
dammit, I'm too slow
/s
Wow, I am impressed with Hesse... Putting respect where it is earned (iPhone), taking note of your company's prior mistakes (Nextel), realizing that batteries are major impediments which need improving (touchscreen phones INCLUDING iPhones), and, most of all, releasing awesome phones (Pre, Pixi, Hero, etc.).
It's great to hear that we have CEOs that are realizing that the economy is faltering, and that they need to make rapid improvements to survive and keep customers (Ford and Sprint come to mind; GM and AT&T not so much).
It sure is a nice break from all the whining that goes on here with the usual suspects.
No matter whether anyone wants to admit, the iPhone changed the cell industry forever.
I was just checking on responses to my post, when this ad came on from Sprint on my TV. It is Dan's latest Sprint ad in regards to Any mobile, anytime:
"Wireless can bring even more freedom to the freest [pronounced free-est] country on earth. So, why should we be penalized, just because they're on another network?"
And this one:
"It's a free country. Knock yourself out!"
See? It's that kind of thinking (and talking) that saves a company. He seems like are really down-to-earth guy who knows his customers, and feels their pain when dealing with other cellular companies' high costs, restrictive calling plans, and customer experience. In fact, I went to the Sprint store this weekend to look at a Pre, and they were very nice and knowledgeable, more-so than AT&T when I was buying my 3G S.
Ugh, I may need to switch now; the ETF should be of little concern when I consider the lower price of their plans. And the Pre is just plain awesome.
i have no idea why Sprint bought Nextel then demolished the push to talk.
Nextel was pretty cool. instead of texting, push to talk was the way to go! just like instant messaging but with voice.
B.S!!! Now they want to change?? It took a faltering economy for businesses to realise that they can't rape the consumer and get away with it anymore..Seems like they didn't have a choice. They HAD to lower their prices BECAUSE the economy is faltering.
I would respect them more if they didnt rape us when times were good.
Seconded. I thought Sprint was going to go down, but now I don't think so. If the CEO has this clear a picture of the world, he will be able to act on it.
"instead of texting, push to talk was the way to go! just like instant messaging but with voice." - darkstar
Yeah, but also pretty annoying for everyone else in the immediate vicinity. Chirps and radio blasts are designed to grab peoples attention out on the highway and construction sites... Teens in NYC delis are far less annoying now that SMS rules.
honestly. only a complete idiot doesn't know that iphone is the market leader in smartphones. Everyone says it everyday. Every phone maker already says it. It's not news.
I do agree, its called leadership.
Also I was in a Sprint store looking at the Hero (not a good phone BTW) and the guy their said hold till June 2010 for the iPhone! DREAM I hopo not.
This guy is great in those commercials!
verizon needs android, android needs verizon
dude, this is an article about sprint.
I'm really impressed with Hesse now that he's with Sprint. I think he's great in the commercials, he gets what consumers want, but at the same time is a very smart businessman.
Quote engadget podcast "Apple is like the Google of Apple" --"What does that even mean man?" via @chcameron
Unlike Ballmer, that was the classy way to handle discussing the iPhone's presence... respecting it without sounding like a bitch, and this guy offers the only phone I would consider other than an iPhone.
"One day, some of the kids from the Sprint store carried my iPhone all the way home... You know why? It was out of respect."
DEVELOPERS DEVELOPERS DEVELOPERS DEVELOPERS DEVELOPERS DEVELOPERS DEVELOPERS DEVELOPERS DEVELOPERS DEVELOPERS DEVELOPERS DEVELOPERS
After that, if Ballmer did anything like this, it would be WAYYY out of character
this guy is obviously an apple fanboy
When I switched a family plan from Sprint (been there since 2000) to AT&T last month so I could get two iPhones, the rep asked me why I was switching. I told him because I needed two iPhones. He asked what applications I use. I told him I just liked how the iPhone integrated with my Mac, my music, my photos, etc. and that other devices just didn't let me leave my camera and iPod at home. He said he understood, and that was that. Yeah, they know. I feel bad that I had to switch, especially as inept as AT&T is. I spent more time talking their customer support in 1 month than I did talking to Sprint's in 9 years.
hey, big up to this guy for giving the iphone credit where credit is due. Unlike other people (like steve balmer especially) who can't stand the fact that apple is good at what they do
Of all the CellCo CEO's, Hesse is the most impressive. Almost makes me want to switch from AT&T to Sprint.
Almost.
When you want to do something, the best thing is to simply do it =).
PBS has done these discussions with quite a few large companies they are a very good watch.
I think once Sprint has it's 4g network setup it will really become a strong contender.
I think so too. They're large enough to survive until then. 3G has obvious problems (see AT*T) once people actually start using it. There will be iPhones on both Sprint and VZN.. not soon, obviously, but getting 4G up probably takes long enough for the exclusivity contract to expire. 2011, 2012, then.
Batteries are improving, just not anywhere near as fast as processors. There's practically nothing that improves as fast as processors. Perhaps there should be more investment into batteries.
Also I'm not surprised he freely praises the iPhone. After all, he's just representing a carrier. If it was possible (CDMA iPhone), I don't think any carrier would hesitate to carry the iPhone.
If battery tech has improved with moore's law then we'd be all walking around with grenades in our pockets by now.
The holy grail is a viable, relatively cheap, and mass-produceable super capacitor. The first person to figure that out will be rich beyond their wildest dreams, especially if it's good enough for use in electric cars/hybrids and perhaps even large enough for use on the power grid - it'd be load balancing way easier.
or a controllable micro nuclear fusion generator. where sacrificing an atom means 10 years of power
People also fail to mention that processors really don't consume more power over time as silicon process geometries get smaller... The thing with devices like the iphone is that they had 65nm in the iPhone 3G and still used 65nm with the faster processor in the iPhone 3GS. If they had moved to the 45nm or 40nm node with the iPhone 3GS, it wouldn't use a lot more power.
Anyone that isn't convinced Sprint has turned around should be now I hope. Dan Hesse is a tactful, assertive but honest businessman.
Despite some of the popular opinion on Engadget, they are the best carrier. They have the best data network (I can cite sources if you'd like), they best deals on internet capable plans, and other than lacking the iPhone, they have *the* best lineup of the phones (Hero, Pre, Pixi, TP2, BB galore)
While I'd like to say Apple is considering Sprint, if Apple was going to jump with AT&T, it'll probably be Verizon unfortunately. However, Sprint/Verizon have incredibly powerful internal networks about on par with each other. If I had a vote, I'd cast it for the underdog. Go Sprint!
Sprint's only problem is their lack of coverage outside of major metropolitan areas. I understand "bang for the buck" in terms of coverage area but they'll never be more than the 3rd US carrier if they can't expand a bit.
well I dono what you consider the boonies but I spend most my time traveling to gas drilling rigs in western kansas. The cow to person ratio is about 1000:1. The nearest city with over 20,000 people is Wichita, KS about 6 hours away. :D there are tons of deadzones everywhere, but that's because noboby friggen lives there. People use my phone all the time though, GSM has absolutely not presence.
I am with you, I own a Pre and iPhone 3Gs. My dream would be iPhone on Sprint. I would leave AT&T so fast and have my AT&T/GSM 3Gs on ebay so fast. Sprint is not as large as Verizon, but their network is the best. Verizon is second, but when T-Mobile gets going with 3G they could give Verizon a run in the same areas. From what I have read T-Mobile's 3G leaves AT&T in the dust.
Samurai Jack,
Does Free Roaming on Verizon's network not resonate with you?
Anywhere this is a Verizon signal, there is a Sprint signal too.
It should be noted, though, that VZ-Sprint roaming is only 2G. (except there is 3G in former Alltel territories, IIRC)
@WindowsFTW
That is what I had heard prior to switching from Verizon to Sprint. But in my home apartment I get lousy reception now on Sprint (frequent dropped calls, sometimes no signal), whereas I never had a problem on Verizon. Now it could just be the switch to a different phone, but I think that assuming Sprint reception is equivalent to Verizon is wrong.
Not that I've had a terrible experience with Sprint's reception. Besides the weak signal at home, I noticed much difference.
I love my Pre too. =)
If Sprint was GSM I would switch in a heartbeat.
One question , why aren't all networks CDMA + GSM , I mean it only make sense to be able support all phones.
While CDMA is superior, GSM is more ingrained into the world's infrastructure, and therefore has a lot more support.
Maybe one day we will see more hybrid devices. I know that the new Touch Pro 2 is a hybrid CDMA / GSM device (at least I'm pretty sure it is; that SIM Card slot isn't just there for looks).
@Aaron
That technology is called 4G LTE. Backwards compatible with everything out there until everyone else catches up and phases out 2G/3G.
"Why aren't all networks CDMA + GSM"
Because that wouldn't make any sense, even from the handset side. Would you want all car manufacturers to start putting both petrol and diesel engines in their cars, along with diesel tanks and petrol tanks? Well, I guess they could... but you're going to pay for it.
@Jughead: I thought Sprint wasn't going LTE?
There is a rumor going around that Sprint is testing LTE 4G as we speak. I assume it'll be ready by the time AT&T pulls their own 4G, which isn't anytime soon.
I think he is preparing his ground to launch iPhone on Spring once AT&Ts exclusivity over iPhone ends
And we care why?
Whats the talk about this 4g Puck? which your smart phone and other devices will be able to connect too, through wifi, hmm sorta makes sense since Sprint will release all smart phones from now on with WIFI!
You mean except for the Palm Pixi?
If sprint got the iphone I think I'd cry tears of joy. It'd be hard parting with webos, I love the great notifications and multitasking really is handy, but I can't wait for apps and the iphone has 'em ready to go. Please sprint, iphone with wimax...(w)i(max)phone
Ever since they pulled the ads with Hesse walking through the park..I've liked him more and more every time he speaks/makes a move.
These are some really great tidbits from Mr. Hesse. I've been following Spring a lot more since we added a Pre to the house, and I hacked my iPhone for T-Mobile pre-paid.
He is absolutely right about the battery problem. Just look at the pre for example: battery life is just not that great. Yet people want the full features and not have to keep their phone tethered to a power source.
We the addition of the free mobile-mobile, Hesse is getting to be pretty amazing strategist.
I'm planning on switching to Sprint for the Palm Pixie this Winter.
This is obviously a sign that everyone knows that the iphone is best
Hesse seems like a stand-up guy, and he cuts through the bull on many occasions. Unfortunately, the Sprint network just isn't what it should be in a lot of places, and their device selection leaves something to be desired. I wish them the best on changing those things. Lord knows AT&T and Verizon need good competition to keep them from slacking off.
I dunno, I think a lot of people on here would agree that Sprint has the best phone lineup right now and in the near future. (Hero, Pre, Pixi,Touch Pro 2, InstinctQ?)
i was talking to a salesman about wimax and it sounded real good and all that but he said it would be way easier for the government to hear ur conversations and be all in ur business when wimax takes off. should we welcome wimax?
take off your tinfoil hat.
Easy has nothing to do with it. Even if it was hard, they will still listen.
Sprint is making a comeback.
A blazing fast comeback at 4G speed.
In a year, they have managed to transform their staid lineup into one of the best.
Customer service has never been better. I'd even say it's better than Verizon because I just left Verizon for Sprint.
Signal strength is amazing.
Blankets of 3G everywhere.
I mean.
Even in the California deserts and the dense forests in Oregon, there is 3G.
Signal strength in Los Angeles in amazing. Four plus bars everywhere.
Blazing fast data.
Great building penetration.
Even if I somehow don't manage to get a Sprint signal (maybe once a month), my phone roams on Verizon's 3G network.
Side note.
Always remember September 11, 2001.
Remember the lives lost that day.
Children, women, firefighters, medics, policemen.
Many more.
God bless America.
http://charlierose.http.internapcdn.net/charlierose/091009hesse.wmv
Great interview! Get your popcorn ready and watch it!!
I have been with Sprint for several years now. The first couple of years I was constantly threatening to leave b/c of terrible phone selection, dropped calls, poor coverage area, and then the IPhone (of course). I have had a phone on ALL of the major networks, but for some reason I stayed with these guys. Today I can say that I am very glad I have stuck through the hard times. Sprint may be #3, but Hesse is #1. The changes he has made are unbelievable. I have had dumb phones, several Treos, and WM devices. I am currently using a Touch Pro, which I will put up against any other phone on the market. I take every opportunity to play with and use my friends' IPhones and Android phones, and while they are great devices I can do most of what they can do and sooo much more with my Pro: free tethering, internet connection sharing, NES emulator, REMOTE DESKTOP, MMS, and more hacks, tweaks, and appz than you can shake a stick at! (Don't know why, but I've always wanted to say that!) I follow the IPhone closely (can't help but to thanks to Engadget!) and I am waiting for them to put it all together, when they do I may switch.
Sprint gets a bad rap, but they are getting better.
I love Sprint. I love WiMax. I love Clearwire/Clear.
Stealing a modem from Bellingham, and using WiMax in my home, /in Seattle/ or the Clear Spot at school is awesome. I even got my mom and dad to try the 30 day money back garentee with all of the 4 major players. After being let go by Qwest Wireless. (Later finding out that it was an MVNO of Sprint) I went with T-Mobile first. Didn't even last a week! Then Sprint.
But what I don't understand is WHY I get dropped calls with ALL of them! Except Sprint. And No. I'm not lying, or being biased. Sprint is the only Carrier in the Seattle Area that I got ZERO dropped calls. Taking the Metro bus and traveling all around to all ends and parts. I had the experience of:
•A shitty T-Mobile that only works on the 17-1900Mhz spectrum? No signal in buildings.
•With Verizon, fast 3G but dropped calls. As bad as AT&T. And don't get me started on the phones. The way they canobalize (is that spelled right?) their phones!
•I have no comment on for AT&T. Seattle is just as bad as San Francisco.
•Now, with Sprint. Their only flaw is coverage. People who travel need coverage. Especially in suburban areas. 2-3 Bars is not enough.
4G, the winner, the better service will be WiMax. In America. Just like CDMA. Better, but not popular.
With 100Mbps by the end of 2010. Can Cable or FiOS do that? No.
Now it's up to You, engadget community to agree or disagree with my thoughts.
Verizon has FIOS capped back right now because they have no reason to offer those speeds.
FIOS should have no problem doing 1000Mbps per household as fiber is a much faster/reliable means of transporting data.
Your brain, where is it?
I can't wait until Sprint gets the iPhone so I can continue to not buy one.
I have to agree with (most) everyone's comments. Sprint seems the most pro-customer. In all actuality, they always have. They were the first to go all digital, and had 3G WAY before AT&T. It's too bad they have made some mistakes and don't have great coverage in a lot of areas. If I wasn't on contract, I would give them another shot to see if their service is any better where I live.
If Sprint ever gets the iPhone I'll totally consider switching over to them.
The one thing with sprint is, even if the coverage does suck in your home there is always the option of getting a free airave. For those not in the know, the airave is a mini cell tower that uses your home's internet connection to send/receive calls. Normally they are 100 bucks and 5/month but, if it is what is required for you to have good service and to keep you as a customer, sprint will give it to you for free. Even if your sprint phone works okay at home I'd still recommend getting one. The call quality is on par with the landline and its awesome to be able to use your cell phone anywhere in your house (with the airave I can make calls even in the basement).
Sprints coverage could use some work however. My Pre has to roam a lot while I am at the hospital/university. It totally kills the battery switching back and forth. I'm lucky to get 6 hours with moderate use and have to carry a spare battery and/or charge it during a lecture. Hopefully some kind of touchstone compatible extended battery will be developed as I would get one of the 2600mA batteries, but don't want to give up the awesomeness that is the touchstone (it seems like a gimick, but I couldn't imagine using a phone without one).
Also Sprint is quite economical. It's easy to get 10-15% off (most employers have such a deal and you can get 10% off from just banking at a credit union) and their plans are already cheap. I pay $145 a month (including phone insurance and all the taxes/fees) for two Pre's with 1500 shared minutes unlimited data/text, nights and weekends at 7 and (just added) free calling to any mobile phone on any carrier. We use our phones a lot (about 5,000 min/month between us). However, with all the free calls only about 500 of our plans shared minutes are used up each month (with 4,500 minutes being free). A similar iPhone plan would be closer to 200 (with fees, texts, etc.) and not include the awesome feature of having all your mobile calls be free. In a family with 3-4 phones on one plan it is a total no brainer (each additional line with sprint will be about 30 dollars once fees and taxes are added compared to $50 with AT&T). Sprint is a especially great deal if you have college/teenage kids as their friends are likely to have cell phones and, as such, they won't be using up any of your plans minutes (which is huge!).
F yes... im just waiting and waiting and waiting... and jsut gonn keep on waiting...
CDMA doesn't work that way. However sprint has it set up so that you can go to their website, enter a phones unique CDMA number and switch which phone you are using in just a few minutes. I still sometimes use my old treo this way (if I'm going hiking and don't want to risk messing up my new Pre). In some ways not having sims cards is nice as it means stealing a CDMA phone is pretty much an exercise in futility (carriers can just blacklist the phones unique number).
Realistically, how hard would it be for sprint to set their phones up with a chip similar to a gsm sim card?
I very well know the tech is different between the 2, it's just i like the idea of being able to pull my sim card out at will, and stick it in another device.
It's something that certainly prevents me from going to sprint or verizon.
Easy has nothing to do with it. Even if it was hard, they will still listen.
Finally a company that really gets it in the wireless market. This makes me want to go back to Sprint. I had Sprint for 8 years prior to iPhone and had amazing reliability with very few dropped calls ever. I may just have to head over and get the Pre and drop the 3GS.
All the asskissing in the world, pomp and circumstance, and keeping up appearences, whatever you want to call it, doesn't hide the fact they bleed an avg of a million customers and 300 million dollars every quarter... thats 463 customers leaving you every hour and $138,888 your loosing every hour AND customer service stunk then and stinks now, and coverage doesn't cut it. Ask someone that has Nextel why they call it NextTime...
Seriously? They're sticking with Boost for prepaid?
I'd like Sprint prepaid service... but not from a company that touts itself as "WHERE U AT LOLOLOL" or targets wannabe gangsters with their services.
I'd like something professional for prepaid service without all the stupidity and stereotypical black-ness of Boost.
You're a fool. Prepaid is the most profitable segment in smart phones and for Sprint. The "blackness" is doing them just fine. The only people buying "whiteness" are birthers, the kkk, and people who think the south is still fighting the civil war. Get over your racial issues it's 2009 not 1809.
You're a fool. Prepaid is the most profitable segment in smart phones and for Sprint. The "blackness" is doing them just fine. The only people buying "whiteness" are birthers, the kkk, and people who think the south is still fighting the civil war. Get over your racial issues it's 2009 not 1809.
Charlie is the best. He often has technology and industry leaders on. Over the last year he has had the best in depth coverage of financial crisis. Watch him more!
I worked for Sprint from the time they merged with Nextel all the way up until about a year ago when I decided to take another job. I was very reluctant to leave because of things that Dan Hesse was doing to revitalize the company. Working on campus at Overland Park it was easy to see that things were moving in the right direction and their latest moves just confirm it.
Think I'll pick up 1000 shares of their stock this week as it's obvious that the consumers opinion of Sprint is slowly changing.
Question about Boost: Is it less locked down than Virgin Mobile? I'm currently using that, and their proxy blocks all app and midi links. And the only way they let you get pictures off a phone is MMS. What about the Boost phones? I see they don't really have any cheap ones like VM. Can I use an unlocked or even locked Sprint phone with the service?
By the comments left here there is something people don't really understand...
Dan Hesse has only been CEO of Sprint since Dec 2007. I have heard a lot of talks about people getting screwed in 06 and 07, but he wasn't even there for that.
Look at all the good he is doing right now. Really looking to change the Sprint company around.
Gosh golly! A Ceo that talks sense! What next?
Dan Hesse For President.
I do agree, its called leadership.
Also I was in a Sprint store looking at the Hero (not a good phone BTW) and the guy their said hold till June 2010 for the iPhone! DREAM I hope not.