Sprint's CEO could get the boot

It looks like Sprint Nextel's CEO Gary Forsee will soon get the boot, which could spell trouble for the company's WiMax network.

Sprint Nextel CEO, Gary Forsee

(Credit: Sprint Nextel)

According to a story published by The Wall Street Journal late Thursday, the company's board of directors is fed up with Sprint's poor performance and they're laying the blame on Forsee and company.

The story didn't identify sources by name, but referred to "informed people" who said the board of directors had already launched a search for a new CEO in August. Several high-profile candidates have been approached for the job, the story said. And at least one has declined the offer. The board hopes to announce a new CEO by December, the story said.

CNET News.com contacted a Sprint representative, who declined to comment on the story or rumors that Forsee is being forced out.

Pressure has been mounting for months as investors become increasingly more agitated at Sprint's poor performance. Since Sprint acquired Nextel in 2005, making it the third largest cell phone provider in the U.S., the company's stock has declined roughly 27 percent.

Earlier Thursday, The Wall Street Journal reported that activist investor Ralph Whitworth said he had lost confidence in Forsee and was prepared to launch a proxy fight unless Sprint's board of directors did something. Whitworth owns about 2 percent of the company's outstanding stock.

Whitworth and others are disappointed with Sprint's inability to increase its subscriber base as fast as its competitors Verizon Wireless and AT&T.

One of Whitworth's biggest beefs with the company is its plan to build a nationwide high-speed wireless network using technology called WiMax. Whitworth told the WSJ that he felt this plan detracted attention from Sprint's issues in its core business.

Sprint has already committed to spending $5 billion by 2010 to build the network. And it's signed a deal to partner with a company called Clearwire to bring WiMax to even more cities. The two companies predict that together, by the end of 2008, they will offer mobile WiMax network access to about 100 million people.

But what happens if the new CEO pulls the plug on the Wimax plans? It's certainly a possibility. Just look at EarthLink. When the company's new CEO took the helm earlier this year, he wasted little time abandoning the company's ambitious citywide Wi-Fi plans. Within months, the company started backing out of its contracts.

While the issues surrounding Sprint are different, it will be interesting to see what becomes of Sprint's WiMax strategy when the leadership eventually changes. Will it survive, or will it wither and die as the company attempts to focus on its core business?

[garydavis223]

Sprint Must Change More Than It's CEO

I left sprint after several years of using their cellular service because they systemically made errors on the billing (always in their favor), and I literally had to make a call a month for 6 months in a row on a different issue each time, and it would take 45 minutes of my time to "fix it." If this company doesn't begin to understand honesty and truly valuing their customers, merely changing CEO's isn't going to fix their bottom line.

[sangjmoon]

Sprint is sleeping in the bed it made

I left Sprint because their quality and price was worse than the competitors. On top of that, they charged me with a cancellation fee which I didn't deserve, and they had absolutely no process for disputing their fees. I had to choose either to pay the cancellation fee or take a hit on my credit report. I chose to just pay their blackmail money, but I will never go back to Sprint and I tell everybody I know not to choose Sprint. Sprint lost a lot more than the paltry amount they squeezed out of me by their poor customer and billing service.

[nicmart]

Too true

Lethal customer service. Barely more ethical than thieves.

[Al Wilsom]

It is about time!

The only question is why the board of directors wanted until August to start looking. There search should have begun after the decision was made to terminate 1200+ of there customers for nothing more then calling to correct problems, that Sprint Customer Service Representatives cause. If upper level management looked at this as a indication the something was seriously broken and needed to be fixed, they would be better off. Instead they point the finger of blame, and loss on revenue at the very people that provide that revenue, their customers! When the Board does finally replace the CEO, they should charge that person with one directive, Improve Customer Service! For the most part, all Cell companies offer the same quality of technology (cell phones, coverage, voice and data quality) and sadly their Customer Service is very poor! The company that improves their Customer Service without a sacrifice in technology will be the one that we all switch to when our contract is up. Maybe sooner, as their might be a lot of us that would pay the Early Termination Fee just so we did not have to wait 20+ minutes on hold, get told misinformation, mistakes in billing, employees? that do not properly verify who you are, or clearly understand English.

[sgeng]

Left Sprint when...

I left Sprint when they sued Vonage who I have phone service with. The patent lawsuit was silly and I can't be paying Sprint to sue my phone company.

[grrrrrrrr]

Whitworth is right

Sprint has continually gone for the next "big thing" instead of focusing on it's core network. There are still large coverage gaps on major interstates in my area that have been there since their network launched in '99. Instead of filling these "holes" and improving the core service.

[chubert40]

Sprint - what a joke!

Sprint is such a joke - I MISS NEXTEL. Obviously Sprint took over and made a complete mess. Their customer support stinks, their stores have no merchandise at all, and their billings are a joke - and, for a CEO to "ok" getting rid of customer who call "x" # of times....should have gotten rid of him then. Obviously he didn't know the reason these folks kept calling was b/c Sprint couldn't do anything right. Bring Back the NEXTEL CEO and run the company like NEXTEL - KEEP this service and get rid of the SPRINT stuff!

[joemacswan]

Sprint

In: Products > Communication Services > Long-Distance Providers


Iv got three phones one month I asked for 100 mins for 10.00 thay gave me
100 mins on each phone for 30.00 bucks and thay are charging me this every
month thay wont return the money and then I conplaned thay started my contract over Sprint is just a rip off compney. SPRINT SUCKS SUCKS SUCKS SUCKS SUCKS

[iamveryprecious]

sprint will screw you!

If you are a sprint customer, or thinking about switching over to sprint, DON"T!!!! I have been a loyal sprint customer for the last 8 years!!! Why I stayed with them for so long is beyond me. Customer service has always been poor, and nobody in the company takes responsiblitly for their actions or words. About a year ago I went into the sprint store to purchase a new phone because the one I had was useless! I asked the guy who worked there if he could look at see when my contract would be up, and he told me that it not be up until november of 07. It was only July and there was no way I could wait until november to get a phone. I had a little extra cash so I bought a razor phone (sucks) at full cost. I explained to the guy to go ahead and transfer the same plan, including unlimmited texting over to the new phone, and not to change a thing. A month later I call to check on my bill, only to discover that it was weay higher than it should have been. I spent about a half hour waiting for someone to take my call, and when the customer service empolyee explained to me that I had been charged for every single text that I had made, and that is why my bill was so large, I was pissed!! I explained to her that my plan was to have unlimmited texting and she simply responded no mam you do not have that. So here we are with a situation where sprint can not take responsibility! The customer service worker that worked for sprint failed to transfer my plan over as requested leaving me to pay a crazy sum of cash! I even told this lady on the phone to go look at all my other bills and see that I haver always had unlimmited texting on my phone. Yes mam I se that u did have this service, but u no longer have that on your plan! At this point I want to strangle her! I am the customer, I pay your company several hundred dollars a month, now take responsibility and credit my account! Just when I thought I could not get any more frustrated, she informs me that I am also on the family plan! Huh.......hold up mam why would I be on the family plan, I do not even have a family, I am single with one phone. Here is the kicker....the lady responds with well mam how old are you, and shouldn?t you be married by now!HOLD THE PHONE!!!!!!Does sprint train their employees to handle customers in such an unprofessional way. I was forced to pay for those texts in order not to screw up what credit I had. About 2 months ago my boyfriend and I talked about either him joining the family plan with me over at sprint or me going over to verizon with him. We decided to go by whoever had the least time left on their contract. We first go into the sprint store here in Willowbrook, and I ask the young man to look up when my contract would be up. I give the guy my password and phone number and he informs me that my contract had already expired in november of 07. We immediatly leave the store and head on over to verizon where I switch over to join the family plan with my boyfriend. When I got home I called sprint just to make sure that my service with them had been terminated and I requsted them to send me my final bill. The sprint employee informed me that my final bill would be about 190. A week later I open my mail to find not just a bill for 190, but a threatening letter saying that if i do not pay the 500 something dollar bill right away they would send it to debt colections. It turns out that now I am being charged an early termination fee....I have called several times trying to to get sprint to take accountability for the imformation their employee at the SPINT STORE gave me. The last lady I talked to told me "Oh well we have nothing to do with those people in the store".......again NO ACCOUNTABILITY!!! Once again I am stuck with a giant bill becuase of a MISTAKE they made somewhere in the system. I payed 100 bucks to sprint last billing cycle and today I recieved a letter from debt collections. NOT ONLY HAS SPRINT SCREWED BE OVER AND OVER AGAIN AS A CUSTOMER, BUT THEY HAVE ALSO SCREWED UP MY CREDIT! LEAVE SPRINT, BEFORE THEY DO THE SAME TO YOU. SO FAR I HAVE RECIEVED TOP NOTCH SERVICE OVER AT VERIZON....THREE PEOPLE HAVE ALREADY SWITCHED OVER BECAUSE OF THIS SITUATION AND EXPECT MANY MORE WILL. I LOOK FORWARD TO SEEING THE END OF SPRINT!

"

♣ Lindy's Comment:

"Google CEO of Sprint/Nextel and send him a copy of this letter. WE CAN'T LET THE BIG COMPANYS SCREW US OVER LIKE THIS!!!!! If everyone who has a problem with a big company just would take the time to let the CEO's know...maybe something will get done.

[MISSMONEAK]

HI, I AM A SPRINT CUSTOMER AND HAVE BEEN FOR 4 YEARS. I AM FILING A LAW SUIT ON SPRINT.THEY CUT MY CELL PHONE AND TOLD ME THAT I HAVE NOT PAYED AND I HAVE I HAVE ALL MY PAPER WORK AND RECEIPT.SPRINT CUSTOMER SERVICE HAVE BEEN VERY RUDE TO ME, THIS SEEN LIKE THE ONLY WAY TO GET SOMEONE INVOLVED IS TO CONTACT YOU. I JUST WANT YOU TO LOOK OVER MY BILL AND TO TELL ME WHAT IS WRONG. CELL # 334-663-6243

[hols80]

Sprint has the worst customer service. I have never dealt with anyone so rude. I spent over 2 hours trying to get my phone turned back on, which I was told was going to happen. Guess I was wrong about that! after paying over 200.00 i was told the payments were to be returned to my checking account, and then I had to pay in cash. First of all, why is it so expensive??? secondly, does anyone there listen to what you are saying??? I am switching service asap. Once again, the WORST customer service. Good luck staying in business.