Sunday, November 4, 2007

Sprint in need of a sugar daddy?

I've been reading a bunch about the new Google mobile play which is to be announced tomorrow. Apparently, the U.S. carriers that Google will partner with involve Sprint and T-mobile. The rumors of the announcement sent me off reading all sorts of things that I wouldn't normally pay attention.

I've been reading of Sprint's financial problems and their hemorrhaging of customers. Apparently they have extended contracts to people of questionable financial means, and much like the sub-prime mortgage problem, many of these customers are walking away from their contracts. This puts Sprint in a bind right at a time they are trying to roll out a new 4th generation high speed network called WiMax. WiMax is really fast, and is without question a better mobile technology than Verizon's EVDO, and it's light years better than AT&T's 3G Edge network.

The problem is that the Sprint good-old-boys are not happy with trying to build for the future when they are totally screwing-up the present. Sound familiar? The worry about the next quarter crowd ousted the CEO over this and they are currently rudderless. Reading about their quandary it is obvious that there is a lot of internal bickering about Sprint's path going forward.

"They should stop the WiMax rollout immediately," said Patrick Comack, an equities analyst with Zachary Research. "They need to get back to the basics and learn how to run a wireless company. This means focusing more on the present rather than the future."

Of course, the "present" opportunities have pretty well played themselves out. The market for the current voice stuff is saturated. Raise your hand if you are in the market for your first cell phone? Exactly. So to play in the present means you have to steal customers from others in order to compete. Like that's going to happen. Is Sprint going to compete on price? You get the picture, they are in a total pickle.

Which brings me to Google, and their announcement scheduled for tomorrow. Give Google access to a 3g network today, and then add in the potential for Google to win the 700mhz spectrum auction and the whole telecommunication world is tossed into total chaos. Google could totally pull an Apple and change an industry forever.

To say the telecommunications industry is in need of some new thinking would be an understatement. The telcos are in need of a complete brain transplant. It can't happen soon enough. I'm thinking Google as the sugar daddy sounds pretty sweet.

3 comments:

Anonymous said...

You need to do more research on wireless technologies before making random claims...

Kevin Gamble said...

I've read enough. Unless you want to provide some substance I'll stand by my comments.

Mukund Mohan said...

Kevin
I have a wild thought. What if sprint buys out a handset provider to make a totally vertically integrated play (like buying Motorola and being an end-to-end provider?)