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June 8, 2010

Hesse Plots a Sprint Comeback with 4G Debut

Sprint Nextel Chief Executive Officer Dan Hesse might be the most recognizable head of any wireless company in the world. Since late 2007, Hesse has been the face of Sprint as he lauds the third-largest U.S. carrier’s virtues in TV and radio ads.

When it comes to phones, Sprint has struggled to find one that can deliver the recognition its chief executive has achieved. Although the company has recorded strong sales of Palm’s Pre and some Samsung models, none has become a must-have gadget the way Apple’s iPhone, exclusive to AT&T, or Verizon Wireless’ Droid smartphones have done.

Now Sprint is counting on the anticipated HTC Evo 4G to spur interest in its brand. In an interview with Businessweek.com, Hesse says the Evo — which went on sale June 4 and is the first phone to come out in the U.S. based on a next-generation high-speed wireless technology — could be just the device to bring high-paying customers back into its fold.

Sprint has suffered two years of dwindling subscriber growth and is working to improve what has been regarded as poor customer service. Sprint in the past three years has lost 9.4 million “postpaid” wireless subscribers who sign up for monthly service contracts. The company lost 578,000 postpaid customers in the first quarter.


Managers Must Account for Complaints

“It took me a long time to decide to come over and do this job,” says Hesse, who joined Sprint in 2007 from communications company Embarq (now CenturyLink), and who spent 23 years at AT&T. “At the time, it was in a very difficult place. We have moved the needle a lot.”

Sprint has stanched a tide of defections to larger rivals in recent months, offering simplified rate plans and helping customers set up their phones. The company has also slowed its subscriber loss rate by improving…

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