Sprint to name Marcelo Claure as CEO

Sprint to name Marcelo Claure as CEO
A report published early Wednesday, says that Sprint will name Brightstar founder Marcelo Claure as its new CEO, replacing Dan Hesse. Brightstar is a phone distributor that is majority owned by SoftBank, the company that also owns Sprint. Hesse is apparently being blamed for the continued drop in Sprint customers. In the June quarter, Sprint was the only one of the major four U.S. mobile operators to see the subscriber roll drop, as 245,000 customers left.

Sprint has been in the middle of a long restructuring of its pipeline, which has left black holes in its network. To make matters worse, Hesse took home $49 million last year in salary and bonuses. An $18.7 million bonus was based on his longevity with Sprint, and was not awarded to him for performance. The ousted executive had run Sprint since December 2007.

Claure, 43, has received some attention for his attempt to bring a professional soccer club to Miami, teaming up with David Beckham. His first task at Sprint will be to re-energize a company that is having problems maintaining an identity. Compared to T-Mobile's in your face attitude, Sprint seems laid back. Claure needs to open lines of communication with the public, which is something that T-Mobile CEO John Legere does better than anyone in the industry. Legere would have run a combined Sprint-T-Mobile, according to speculation. Sprint however, has decided not to fight U.S. regulators and has decided to abandon its pursuit of T-Mobile.


source: Bloomberg

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28 Comments

2. Planterz

Posts: 2120; Member since: Apr 30, 2012

Good riddance to Hesse and best of luck to Claure, but I can't help but think that he's been tossed the keys to a sinking ship.

7. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Claure has his work cut out him, that is for sure. I suspect Hesse was dumped because he was overpaid for providing lackluster performance. If the merger had gone through, Hesse was out. Kind of hard to keep the guy you were going to fire around after the deal doesn't get done.

8. SellPhones82

Posts: 569; Member since: Dec 11, 2008

Yep, Hesse was out either way and Softbank is now going with Plan B. I think this is just the begin of Son "cleaning house" at the Exec level within Sprint.

9. naittosan

Posts: 243; Member since: Jun 28, 2014

I'm surprised Softbank put up with him this long.

10. Jeradiah3

Posts: 1149; Member since: Feb 11, 2010

This is probably the best news for Sprint in years. They may actually become a respected wireless carrier again. I'm not going back to sprint, but I hope that things turn around for them sooner rather than later

15. thunder18

Posts: 156; Member since: Aug 06, 2009

I'm confused. Everyone says this, "I'm not going back to Sprint." what if they do turn things around full circle and end up being able to service your needs better than the other guys? You're just going to stick with who you're with now no questions asked?

23. Jeradiah3

Posts: 1149; Member since: Feb 11, 2010

I'm not going back to Sprint because they don't have the ability to talk and surf the net at the same time like I can with AT&T. My first smartphone was with Sprint so I feel like they shouldn't just crumble and die, but they needed to change their business practices like having the iPhone

26. tuminatr

Posts: 1158; Member since: Feb 23, 2009

That’s not true unless you have an Iphone. All CDMA iphones don’t do simultaneous voice and data, yep even Verizons. My work phone is a Verizon Iphone 5s and I have personally tried it and an error message pops up cannot use internet when on a phone call. This is not a limitation to the network it’s something apple did if you search the web there is info about needing a third antenna or something like that. My personal phone is a sprint galaxy note 3 and indeed where there is LTE I can talk and surf simultaneously. I live in Minnesota Sprints LTE network is very large here second only to verizon.

27. Jeradiah3

Posts: 1149; Member since: Feb 11, 2010

ok cool.

28. wumberpeb

Posts: 453; Member since: Mar 14, 2011

This has nothing to do with Apple, its 100% based on the CDMA network that its connecting to. The only time it ever worked is with Sprint's single band LTE devices like the Galaxy S3 or Note 3, which had separate paths for data and voice. So with those devices, on 4G LTE, you could talk and surf at the same time. Newer devices like the G3, Galaxy S5 etc are Sprint Spark enabled and don't have the separate parts for data and voice. Tri-band LTE devices cannot do it, even connecting to the same tower that an S3 can do it with I hate Apple normally but this is just a dumb comment. Is 100% Sprint and Verizon's fault because of their type of network.

11. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

Hesse, should had been ousted like, five years ago. The company has one of the slowest data transfer, spotty coverage, and one the worst customer support.

12. tokuzumi

Posts: 1951; Member since: Aug 27, 2009

The CEO is always the fall guy for a company's failures. Hesse did do some cool things (unlimited mobile to any mobile, and nights and weekends starting at 7pm), under his watch, sprint basically did nothing with the most important thing of all....their network. Hopefully, under Softbank and with the new CEO, sprint will put upgrading their network first, and prove their network is the the "now" network.

16. thunder18

Posts: 156; Member since: Aug 06, 2009

Exactly! Changing CEOs is meant to change the face and attitudes of the company. It always rolls down from the top. Though I can't agree they did nothing with the network while he was there. Dan Hesse oversaw SoftBank's $21.6 billion purchase of 80 percent of Sprint, deployed and re-purposed Wi-Max into LTE, Sprint bought partner Clearwire, shut down Nextel's iDEN network and started deploying its tri-band LTE Sprint Spark service. For those of us finally enjoying Sprint's Spark and LTE speeds, we do have Hesse to thank for that. Though we also have him to thank for putting Sprint on the hook for $13 billion worth of iPhones and tanking network performance for ages after the phone was introduced. It was definitely a double-edged sword and I often wonder what would have happened if Sprint didn't pick up the iPhone and had invested in network infrastructure instead. Would they have had enough customers or would the mass exodus of subscribers crippled Sprint to the point of implosion. Every new iPhone at the time was a locked in 2 year revenue stream and may have been necessary to finance the network improvements. Oh well, the future awaits.

20. Joshua9007

Posts: 94; Member since: Jun 08, 2012

I completely agree with your first paragraph, Hesse was the one who got the keys to the sinking ship after the Nextel merger fiasco and basically got everything back on track. The apple deal, while it was a daunting amount, wasn't a payment to apple but a deal that 'allowed' sprint to brand and sell the iPhone (and they would pay if they didn't sell enough). Last I heard they were above their quota for how many phones they needed to sell, and that means they will not need to make up the difference The subsidy/phone was a few hundred higher that most of the comparable android phones were at the time of the deal, but offering it saved them from a mass exodus. The smaller margin that sprint gained from each iphone might have hurt their profits slightly but loosing the customers would have been much more negative. This new CEO will have a much better company to run as they have replaced almost all of their infrastructure, and are almost complete with the initial PCS LTE roll out. He will need to see that "Spark" TDD-LTE 2600Mhz gets expanded quickly and at least overlaps t-mobile, as that will allow them to gain back most of the customers they have lost... then focus on expanded coverage with their 800Mhz and future 600Mhz spectrum.

13. joe1blue

Posts: 169; Member since: Jul 25, 2013

As I just left Sprint for T-Mobile I'm happy the merger didn't go through, but I hope sprint can turn things around just for the sake of competition which would equate to lower prices.

14. Mrmark

Posts: 407; Member since: Jan 26, 2013

Hesse took a lot of money home!

17. camera531

Posts: 346; Member since: Jun 30, 2012

In the LA area, Sprint basically has no data services. You'll see all of the coverage maps saying we're blanketed in LTE, but there is literally no service in the majority of areas. I don't know how this company doesn't get sued and shut down by regulators for charging for no service. It's hard to believe that a company gets away with this for years!

21. engineer-1701d unregistered

I feel the same my lte speed is around .025

24. JEverettnow

Posts: 228; Member since: Mar 11, 2013

I was just in LA in february and had LTE every where I went from San Luis Obispo down to Redando and all over the city. My speeds were also around 15mbps - 30mbps. I also have a speed test of 76mbps on regular LTE. Not spark.

18. sonisoe

Posts: 440; Member since: May 06, 2009

good for a change.... restructuring usually means the boot for lower-grade staff, now its the ceo...

22. skymitch89

Posts: 1453; Member since: Nov 05, 2010

Too bad that I'm trying to figure out how to get my phone paid off early so that I can leave and go to the new Cricket (At&t). I'd have better coverage, better data speeds, and be paying only about 1/3 the price I am currently paying for service.

25. mike2959

Posts: 697; Member since: Oct 08, 2011

Do some research on the new CEO, it also will be a failure. It's to bad. Lots of jobs, and hurts the entire industry.

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