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Sprint's Dan Hesse confirms unlimited data isn't going anywhere after Spark rollout
Of the four major national networks in the US, Sprint has been the most faithful in its commitment to offer unlimited data plans without restrictions. After this morning's announcement that the operator would be rolling out Spark, which promises 50-60Mbps peak speeds (with faster networks on the horizon as part of its Vision) to its users, it left us wondering if this rollout would come with any trade-offs. While he didn't speak to specifics on plans and pricing, CEO Dan Hesse reaffirmed his company's commitment to unlimited data, explaining that he wouldn't have offered Unlimited for Life to customers this summer if he didn't intend to keep the plans around for the foreseeable future. This will be great for the limited number of markets that can take advantage of the blazing speeds right away, but anxious folks in other parts of the country can at least take comfort in knowing that the plans won't have gone anywhere when Spark finally shows up in their hometown.
Sprint CEO eyes more spectrum deals after buying Clearwire
Sprint CEO Dan Hesse isn't so narrowly focused as to think that the proposed Clearwire acqusition represents the end of the road for spectrum. Far from it: he tells Bloomberg Businessweek that the company is investigating future airwave deals involving companies and government auctions. The Clearwire deal mostly bought time, according to Hesse. Naturally, these ambitions are partly contingent on both SoftBank's purchase of Sprint and the absence of any Dish-sized hurdles to the Clearwire pact. As long as the path stays clear, though, we wouldn't assume that Hesse's shopping spree is over.
Sprint sells 1.5 million iPhones, 1 million other smartphones, but makes a net loss of $767 million
Sprint's latest financials show that while the network is slowly stemming the flow of cash from its veins, it's not quite there in terms of turning a profit. The country's third biggest carrier suffered a $767 million net loss and an operating loss of $231 million -- much less than the $629 million operating loss it had in Q2, but on-par with the $208 million lost in the same period last year. The business did manage to bring in total revenues of $8.8 billion, but had to take a hit on a $397 million write-down on costs related to Network Vision and the continued pain of the Nextel shutdown. On the customer size, it added a further 900,000 users, sold 1.5 million iPhones and a further 1 million "LTE smartphones" in the quarter. Those with long memories will know that the company sold the same number of Apple handsets in the last two quarters, with around 40 percent going to new customers then as now. However, churn, the deadly enemy of all carriers, increased to 1.88 percent, up from 1.69 percent in Q2. The network did manage to coax 59 percent of former Nextel customers to stay tied up with Big Yellow, which may account for it selling nearly 1.2 million Direct Connect devices. While it's hardly a rosy estimation of Sprint's financial health, this report doesn't take into account Softbank's $20.1 billion buy-out or the regained controlling stake in Clearwire -- so we're expecting the next financial announcement to contain some more exciting news. Update: During the conference call, Dan Hesse was asked about adopting a shared data plan to rival Verizon and AT&T, but unlike the last call, he was dismissive of the idea.
Sprint lights up new LTE markets in Illinois, Indiana, Massachusetts, Kansas and Texas
As Sprint continues to play an epic game of LTE catch up, the Now Network has officially flipped the 'on' switch for its 4G customers in the Chicago suburbs of: Addison, Bolingbrook, Des Plaines, Downers Grove, Kankakee, Rockford, Joliet, Naperville, Palatine and Plainfield. Further expanding its not-so-mainstream LTE footprint are Gary, Indiana; Wichita Falls, Texas; New Bedford and Fall River, Massachusetts; and Hutchinson and McPherson, Kansas, too. While these aren't exactly the big markets that many were hoping for, it's good to see that America's third largest carrier is expanding its next-gen coverage for the less populous parts of the country. As for you big city folks patiently waiting for Hesse and company to call your number, rest assured that you haven't been forgotten. We're just hoping that Softbank's latest investment doesn't encounter any additional delays during its LTE rollout, because delays are for the birds.
Softbank confirms 70 percent Sprint acquisition for $20.1 billion
In a joint press conference, Softbank has officially announced that it is buying a 70 percent stake in US mobile carrier Sprint for $20.1 billion. The Japanese company is paying $12.1 billion for existing shares, with a further $8 billion for new shares that the network is issuing. CNBC has reported previously that it would net Sprint around $3 billion in much-needed cash, which it could use to regain control of Clearwire and bolster its LTE rollout. When Dan Hesse took to the stage, he said that the company's heavy investment (both in Network Vision and in its iPhone gamble) would bring a "margin expansion" in 2014.
Mobile Miscellany: week of September 24th, 2012
If you didn't get enough in mobile news during the week, not to worry, because we've opened the firehose for the truly hardcore. This past week, Dan Hesse shared his turnaround vision for Sprint, Jim Allchin revealed where T-Mobile stumbled and AT&T welcomed a new GoPhone. Not to stop there, we discovered two updated launchers that've piled on inspiration from Jelly Bean. So buy the ticket and take the ride as we explore the "best of the rest" for this week of September 24th, 2012.
Sprint marks 1 million LTE devices sold
LTE handsets? Sprint's got 'em. And while the carrier's network deployment may be, well, a bit lacking at present, plenty of Now Network subscribers have been happy to pick up devices boasting the speedy technology. Speaking at a conference in New York, CEO Dan Hesse noted that Sprint has moved some one million LTE devices -- a number that's likely to keep growing, as the carrier continues to roll out coverage.
Dish Network rumored to have bought Clearwire's $400 million debt in secret transaction
We're not in the habit of entering the dry world of corporate debt notes, but Sprint's latest financial release might disguise a juicy bit of news. There's a rumor in the business press that Dish Network might have bought around $400 million of Clearwire's debt -- helping relieve the pressure on Sprint, which has been keeping its subsidiary alive on handouts. Unsurprisingly, no-one's commenting on the rumors, although Dish CEO Joseph Clayton did say he was open to a partnership (or acquisition) with Sprint / Clearwire late last year. If true, it could signal that it's getting ready for a fight against AT&T -- or maybe it just wanted to throw Dan Hesse a bone.
Sprint: iPhone worth the huge financial commitment
Sprint CEO Dan Hesse told Ina Fried of AllthingsD and other reporters who are touring Sprint's headquarters in Kansas that the iPhone is worth the billions that the carrier is spending on the device. According to Hesse, Sprint considered Apple's offer and "saw no reason to bet against Apple." In the end, the wireless carrier agreed to buy US$15.5 billion worth of iPhones over the next four years. Agreeing to buy the iPhone is painful now for Sprint as the carrier tries to balance paying Apple and building out its LTE network at the same time. Hesse, though, believes this gamble will pay off as more and more customers decide to stick with carrier because they can get the iPhone.
Sprint's Motorola Photon Q LTE is coming 'very soon' (update)
During Sprint's earnings call, CEO Dan Hesse revealed that Motorola's Photon Q, the company's latest LTE "world phone" is coming "very soon." The Photon Q is believed to be the Android 4.0-running QWERTY-slider you can see in the image above, but now that the company's head has let the cat out of the bag, we expect more details to roll around very shortly. Update: Sprint's PR engine has kicked into gear, offering the deep dish on the new handset. It's a super-specced edition of last year's Photon 4G and will indeed offer a QWERTY-sliding experience on Ice Cream Sandwich. Beneath the 4.3-inch ColorBoost display you'll find a 1.5GHz dual-core processor, an 8-megapixel camera and NFC as well as Motorola's Smartactions application to help users extend battery life and anticipate your daily routines. Pricing and availability will be announced within the "next few weeks," but given how excited Dan Hesse sounded, we can't imagine we'll be waiting too long.
Sprint's iPhone gamble isn't paying off as 2012 Q2 figures reveal $629 million operating loss
Sprint's second quarter figures have arrived, showing that the company's billion-dollar gamble on the iPhone isn't working right now. While it sold 1.5 million Apple-branded handsets in the three month period (40 percent to new and postpaid customers), it recorded an operating loss of $629 million and a colossal net loss of $1.4 billion -- compared to an operating loss of $255 million and a net loss of $863 million in the first quarter. Operating revenues of $8.8 billion improved on those in the first quarter by a single percent -- mostly due to higher service fees from its wireless offerings. It's also grown its cash reserves, up from $128 million last quarter to $267 million today, and can point to 442,000 postpaid and 141,000 new prepaid subscribers pushing the company's customer base up to 56 million nationwide -- mentioning that 60 percent of former Nextel users chose to remain with Sprint during the enforced change. The figures reveal that Sprint's eating around $782 million due to the shutdown of the Nextel platform and a further $184 million to end leases on antenna sites for the moribund network. It's also having to take a hit of $204 million due to its investment into infrastructure partner Clearwire. It's affirmed its $1 billion lending facility, contingent upon purchasing gear from Ericsson to help build its LTE network, which it aims to have installed in 12,000 sites by the end of the year. Of course, that purchase was prompted by the collapse of Philip Falcone's doomed LightSquared project, which caused the Now Network to lose $66 million in cash and its childhood innocence when it comes to trusting other people. Update: Big Yellow also mentioned that it has no plans to adopt a shared data plan to follow AT&T and Verizon.
Leaked Sprint slides reveal Touch Wallet NFC app, Google Wallet eyes the door
Sprint is reportedly developing its own wallet app to rival that of Google Wallet, slides leaked to Android Central reveal. Entering a four-digit code opens your handset to make payments, while tapping an NFC reader will let you directly access your credit cards. Loyalty options are also included, with logos for Starbucks, Macy's and Barnes & Noble amongst others on the slides -- although it's unclear if there's an official partnership or we're looking at placeholder images. Given that Sprint is the only carrier that uses Mountain View's digital payments system, we can't see the move going down well the next time the pair go out for dinner.
Live from CTIA with Jim Cramer and the CEOs of the four largest US carriers!
In one corner, we have CNBC's Jim Cramer. And in the other corner stands the heads of the four largest mobile operators in the United States: Ralph de la Vega (AT&T Mobility), Dan Mead (Verizon Wireless), Dan Hesse (Sprint) and Philipp Humm (T-Mobile). We fully expect Jim to lob a few hardball questions at these gentlemen, and there's no doubt zingers will be flung around. Who knows -- maybe we'll even get some news out of this keynote, so join us as we liveblog the Tuesday afternoon CTIA keynote, won't you? May 8, 2012 5:30 PM EDT
Join us for the CTIA keynote with the CEOs of the big four US carriers, tomorrow at 5:30PM ET!
In what seems to be turning into an annual tradition, the CEOs of the largest mobile operators in the US will be matching wits with Jim Cramer -- and each other -- in tomorrow afternoon's CTIA keynote. This year, however, we'll get to hear from T-Mobile chief Phillip Humm in addition to the usual trifecta of Dan Mead, Dan Hesse and Ralph de la Vega. We'll be liveblogging the show to soak in all of the latest news, quotes and groaners that may come out as a result. Join us! And while you wait, stay caught up on the happenings in New Orleans by checking out our event hub. May 8, 2012 5:30 PM EDT
Sprint CEO takes pay cut as investors voice concern about cost of iPhone deal
Sprint Nextel's $15.5 billion gamble on Apple's iPhone will apparently lighten CEO Dan Hesse's proverbial wallet by $3.25 million this year. That's how much compensation Hesse agreed to give back to help placate investors unhappy about the high cost of the company's iPhone deal. Securing the iPhone has already paid dividends for Sprint in terms of sales. The company sold 1.5 million iPhones in the first quarter while posting a net subscriber growth of 263,000. That didn't stop Sprint from posting an $863 million net loss during the same period, however, causing some investors to grumble about the cost of subsidizing Apple's phone. The subsidy Sprint pays for each iPhone is 40 percent higher -- about $200 -- than what the company pays for other competing devices. Don't feel too bad for Hesse, though. Apparently, the financial gesture basically brings back his "compensation target opportunities" to 2010 levels.
Sprint: iPhone customers are "more profitable" than others
In an interview with Mobile World Live, Sprint's CEO Dan Hesse says that iPhone users are some of the best cellphone users to have around. Not only are iPhone customers "more profitable" (in that they just plain spend more money, given the price of the iPhone itself), but Hesse says iPhone users are also more loyal to Sprint (with "a lower level of churn"), and they actually use "less data on average than a high-end 4G Android device." That combination of more money coming in with fewer services going out means that iPhone customers are apparently just as premium as Sprint as the devices those customers use. That's probably why Hesse spent $15 billion last year to get the phone on his network in the first place. Given how happy he seems to be about the whole situation, it must have been worth it. [via Ars Technica & BGR]
HTC and Sprint ready to show off a new 'collaboration' April 4th, might be the One X
We just got invited to a special party put on by Sprint and HTC on April 4th to witness the latest collaboration between the two companies. Could this be the LTE-capable One X we heard about yesterday? No matter what it is, Dan Hesse and Jason Mackenzie will be there, so you know it's going to be kind of a big deal. We'll join the two head honchos there as well -- and we're definitely looking forward to it. Update: TechoBuffalo has it on good authority that it'll be the One X (dubbed "Jet") unveiled in New York City, and will almost certainly boast LTE. Then again, so will Sprint's eventual edition of the Galaxy Nexus, which is growing more and more dated with each passing hour.
Report: Sprint planning to dump Lightsquared as early as next week
According to Bloomberg, Sprint is considering pulling the plug on its partnership with Lightsquared as early as next week. Philip Falcone's burgeoning enterprise was subject to a March 15th deadline to gain approval for a nationwide LTE network, but that was shot down by the FCC last month. The company's been treading water ever since and whilst it remains optimistic that a workaround can be found, it's already ousted former CEO Sanjiv Ahuja, fired 45 percent of its staff and defaulted on a $56 million payment to Inmarsat. The same report claims that Nokia Siemens Networks, the infrastructure arm of the handset maker has suspended network building projects until further notice. The split would cost Sprint around $74 million, but given the current state of affairs, that may look like a bargain.
Sprint announces Q4 2011 results: the iPhone brings in 720,000 new customers
Following its bittersweet Q3, the latest financial report from Sprint this quarter offers up another mixed bag of news. Net operating losses totalled $438 million, more than the $139 million posted in the same quarter last year. It suffered a staggering $1.3 billion net loss (much of that due to upfront costs associated with launching the iPhone), dwarfing the Q3's $301 million losses. Operating revenue increases were, however, the largest in the last five years, up to $8.72 billion from $8.3 billion. Net subscribers now total 55 million, with 33 million postpaid, 14.8 million prepaid and around 7.2 million arriving from wholesale, adding an extra 1.6 million Sprint customers in the last quarter. This was also the first time in a long while that new subscribers on the Sprint platform outpaced losses at the Nextel and wireline businesses. Sprint hoped to see its iPhone draw customers into its network, putting it toe-to-toe with the bigger carriers, and it largely did, with 40 percent of the 1.8 million iPhones sold landing directly in the hands of new customers. However, the higher subsidy costs of the iPhone was also responsible for these tougher financial results. Last year also saw the tentative launch of Sprint's LTE network, and that's where the future appears to be for the carrier, with its forward-looking statement hinging on exactly how fast they're able to grab the 4G bull by the horns and get it into their customers' hands. Compatibility with Clearwire's next generation network is mentioned here, as is the "financial performance of Clearwire and its ability to build, operate, and maintain its 4G network." Lightsquared, however, was conspicuously absent from Sprint's future machinations.
Sprint merging consumer and business sales / marketing units, giving four execs the boot
According to a brief report that just went live at Reuters, Sprint is "merging its sales and marketing operations for its business and consumer operations in a streamlining that includes the departure of four top executives." Reportedly, that news was delivered by none other than CEO Dan Hesse himself, who has been in the news a fair amount since 2012 began. Reportedly, the carrier is aiming to "gain efficiencies" in a market where hordes of customers snap up services as individuals, but actually use services tied to "employer-related contractual discounts." Hesse's exact words? "As the wireless market has evolved, the lines between consumers and businesses have blurred." Evidently, they've blurred enough to oust four unnamed bigwigs, too.
