The New Sprint Optimistic about the Future

by Matt Klassen on August 14, 2014

Last week Sprint rocked the wireless world with two bold moves: abandoning its ill-fated T-Mobile bid and removing Dan Hesse as CEO in favour of Marcelo Claure. The Sprint we’re now left with this week looks manifestly different than it did before, a new company that’s poised to take yet another crack at rebranding itself in a market where it has never really achieved the success it thought it deserved. So what we can expect next from the new Sprint?

This fundamentally stands as the first real opportunity for Masayoshi Son, CEO of majority owner Softbank, to truly put his stamp on Sprint, as before this Son’s Japanese firm was still largely playing the hand it was dealt when it acquired America’s third largest wireless carrier over a year ago. While the merger with T-Mobile was an attempted quick fix, Son now has the chance to grow the Sprint brand the right way.

So we’re finally going to see what the new Sprint looks like, a company Son promises will be dynamic, innovative, and aggressive under the leadership of Claure. Further, we’ll see if Son truly has the business acumen to transform Sprint into a viable top competitor, as he has long said there is a great opportunity here in the American market, now he just has to prove it.

While many may not hold out much hope that Sprint will truly be able to transform itself into a dynamic and relevant competitor, as E-Commerce Times writer Jeff Kagan notes, one needs only to look at Sprint’s would-be acquisition partner T-Mobile to see that change can lead to renewed success, if you do it right of course.

For years T-Mobile languished in the middle of America’s wireless market, not big enough to compete with the top postpaid carriers like AT&T and Verizon, and too big to subsist on its prepaid service alone. Last year, however, T-Mobile initiated a radical change under the leadership of charismatic CEO John Legere, adopting an entirely new business model that is once again threatening to change the entire mobile market as we know it.

While the T-Mobile story can serve as inspiration for Sprint that change is possible, the fact of the matter is it also serves as a new opportunity Sprint as well, as the entire mobile market is undergoing its own transformation thanks in part to T-Mobile’s UnCarrier revolution, part of a recurring cycle of change that we inevitably see every five to ten years.

With the market changing Sprint has been presented with a unique opportunity, as the company no longer has to worry about playing the old mobile game, it just has to learn how to succeed at the new one. As Kagan writes, “Turnarounds happen quickly. It seems that Sprint is setting itself up for just that kind of turnaround. Son said last week that we should prepare for Sprint to come out swinging.”

Part of Sprint’s renewed efforts will likely be a radical restructuring of its pricing in an attempt to undercut the industry, not to mention other yet to revealed avenues of innovation that new CEO Marcelo Claure has said he is hoping to bring to his new company.

So what will this new Sprint look like? As Kagan explains, “I expect to see fresh and innovative ideas coming from the new Sprint. I expect to see the Sprint brand refreshed, re-energized and expanded. I expect to see advertising and marketing helping to redefine what the new Sprint will be going forward.”

While many things have come to an end for Sprint of late, as the old proverb goes, every end is a new beginning, and this is certainly a new beginning for Sprint, it just remains to be seen what Son and Claure can make of it.

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Written by: Matt Klassen. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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