Light Reading

Hesse Out, Claure In: Sprint Is Son's House Now!

Dan Jones
8/6/2014
50%
50%

With Dan Hesse out as CEO at Sprint and the installation of BrightStar's Marcelo Claure as the new boss, it is clear that parent company SoftBank is taking a firmer grip of the reins at the still-struggling US operator.

News of Dan Hesse's possible departure broke Tuesday night. A press release Wednesday morning made it official. (See Sprint Drops Bid for T-Mobile – Reports .)

Hesse joined Sprint Corp. (NYSE: S) in December 2007 to try and help fix the mess left by the Sprint Nextel merger. He is now exiting ostensibly because Sprint can't make a potential $32 billion merger with T-Mobile US Inc. happen. (See Sprint Appoints Claure As New CEO and Sprint Nextel's New Broom.)

Brightstar Corp. 's Claure got a seat on the Sprint board early this year after SoftBank Mobile Corp. 's $1.2 billion investment in the wireless distributor. He will take over as Sprint CEO on August 11. (See Brightstar Boss Gets a Seat on Sprint Board and Softbank Invests $1.26B in Brightstar.)

Those are the facts as they stand right now. Even parsing the language of the official press release on the appointment, however, gives little hints at more going on.


Visit Light Reading's mobile channel for key developments from the wireless networking sector, including 4G, 5G, small cells, security, carrier WiFi, packet core and more.


"Marcelo has been a great addition to Sprint's Board and his entrepreneurial background, business savvy, industry experience and strong relationship with Masayoshi Son make Marcelo an excellent choice to lead Sprint going forward," Dan Hesse is quoted as saying in his exit statement.

We also know that SoftBank boss Masayoshi Son has previously vowed to be much more hands on in running Sprint and not repeat the mistakes of the past by leaving an American management to their own devices. Claure appears to be someone that Son can work with at the helm of Sprint. (See SoftBank's Son Keeps Sprint on Short Leash.)

After all, in the matter of acquisitions, the SoftBank CEO was easily as vocal as Hesse about a potential merger. For instance, he had this to say back in March:

    In order to fight back, we cannot be status quo. We have to change the situation, so it's not really four players becoming three. It's two players dominating the market, and we have to fight back.

Yet it was obvious that getting the regulatory approval for any merger was going to be tough. Some, meanwhile, had already started to wonder if hitching T-Mobile's fast-moving wagon to Sprint's donkey would help or harm the brand. (See Does T-Mobile Need Sprint to Scale? and Tough Road Ahead for Sprint/T-Mobile?)

In the short term, Sprint says that "Claure's first priority will be to continue the build out of Sprint's network by leveraging its strong spectrum holdings as well as ensuring that Sprint always maintains truly competitive offers in the marketplace." (See Sprint Promises 180Mbit/s 'Peaks' in 2015.)

"Expect capital spending to rise," say the analysts at Moffett Nathanson in a research note Wednesday. "They will also have to cut their service prices, which are simply are too high relative to competitors."

Doing this will make Sprint financials look "ugly indeed," the note warns.

The replacement of the CEO is also likely to restart chatter about Sprint moving headquarters to be closer to its Japanese parent, although Sprint specifically says in the release that Claure will be moving to lead from the current HQ in Overland Park, Kansas. (See Sprint: Heading to California?.)

As we have seen, however, things can change quite quickly in Son's house. In September 2013, SoftBank put Hesse's contract renewal on a five-year cycle, rather than reviewing it every year, as was done previously. He had been due to stay on as Sprint CEO through 2018. (See Sprint CEO Hesse to Stay On Through 2018.)

— Dan Jones, Mobile Editor, Light Reading

(34)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 4   >   >>
jpolk84
50%
50%
jpolk84,
User Rank: Light Beer
10/3/2014 | 10:35:14 AM
Re: Does this make T-Mobile more attractive?
re: "Except Rand Paul would allow wireless carriers and ISPs to decline services by race..."

This is silly. In principle, the notion that private entities should not be beholden to discrimination law has some merit. In fact, it's the law in some areas like religious entities, for example. (Which is a good thing. Imagine a Baptist church being forced to hire a priest.) But Rand Paul isn't going to advocate that businesses should be able to not allow black or asians or anyone else into their business.
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
8/8/2014 | 7:03:20 PM
Re: Son rise
Has SoftBank been the ruin of many a poor boy?
DanJones
50%
50%
DanJones,
User Rank: Blogger
8/8/2014 | 5:40:55 PM
Re: What could Hesse do next?
With that kind of severance package that's what I'd be sorely tempted to do for sure but who knows....
brooks7
50%
50%
brooks7,
User Rank: Light Sabre
8/8/2014 | 4:58:52 PM
Re: What could Hesse do next?
Dan,

He could just retire and travel as well.

seven

 
DanJones
50%
50%
DanJones,
User Rank: Blogger
8/8/2014 | 4:01:52 PM
What could Hesse do next?
I was wondering about this last night (yes, my life really is that exciting), what could Dan Hesse do next? Would he take on another CEO job or just board positions.
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
8/7/2014 | 1:47:20 PM
Re: Son rise
Yes, it's reputation, such as it is, in tatters. Understand it's considering moving HQ to N'orleans:-(
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
8/7/2014 | 1:34:18 PM
Re: Does this make T-Mobile more attractive?
The President gets nothing done without Congress. And we've already seen who runs that august body. That aside, I can't imagine any policy that would directly result in forced giveback of market share by Verizon and AT&T, especially from someone who is more laissez-faire than Adam Smith. At this point, Sprint and T-Mobile are well on the way to being locked into a grueling battle for No. 3, with almost no hope at this point to get even to second place. There's nothing intrinsically wrong with that, but it doesn't sound like something an outside buyer would be attracted to.
DanJones
50%
50%
DanJones,
User Rank: Blogger
8/7/2014 | 1:23:52 PM
Re: Does this make T-Mobile more attractive?
I understand your position Mr D but -- on paper and in pronouncements -- Rand Paul's whole thing is that he is more lassiez faire than Adam Smith. If he gets to be the candidate and gets in -- and obviously that's a mighty big IF right now -- then it will specifically be on the promise of sweeping away as many government agencies and regulations as possible.

Of course, we all know what a presidential candidate's promises are worth but Paul is certainly a believer in this cause, as Wanlord points out.

Cases in point. Paul's lawsuit against the NSA & telecoms is apparently ongoing. He's claimed that the EPA has done more harm than good since its formation in 1970. That's really just the tip of the iceberg.

So yeah, I do think things could be different if he got in. No idea if that's a possibility right now but he's certainly being talked up as a candidate.
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
8/7/2014 | 8:52:38 AM
Re: Does this make T-Mobile more attractive?
How would a change from Coke to Pepsi have any effect on Verizon's or AT&T's mobile reach or market share?
DanJones
50%
50%
DanJones,
User Rank: Blogger
8/6/2014 | 11:14:08 PM
Re: Does this make T-Mobile more attractive?
In theory, Rand Paul could change many things radically, not sure he'll even be the candidate though but if he is and gets elected that could change the regulatory environment drastically. That was really my only point.
Page 1 / 4   >   >>
More Blogs from Jonestown
Cisco CEO predicts the digitization of everything will change, like, everything!
The connected car is driving the IoT market now, but that's just the start of it.
It's the Claure and Legere show! Sprint and T-Mobile CEOs trade barbs -- or at least retweets -- over rival Super Bowl ads.
Google is now backing or actively exploring three ways of delivering cheaper Internet connectivity to the world: satellites, drones and balloons.
Flying killers turn into duckface enablers!
Flash Poll
From The Founder
Networks of the future will rely on "white box" switches and servers rather than proprietary hardware and that's going to alter the shape of the communications industry. Who says so? John Chambers.
LRTV Huawei Video Resource Center
eLTE Rapid Meets the Need for Speed

3|26|15   |   4:45   |   (0) comments


Designed especially for emergency and dedicated ad hoc local mobile communications coverage, Huawei's eLTE Rapid solution can deliver trunked voice, video and data coverage for multiple users over a 6km range and be set up in just 15 minutes, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
On Videos: Challenges & Opportunities

3|26|15   |   5:56   |   (0) comments


Most everything is now connected. And along with 4K and 4G technologies, everyone could be creating and broadcasting video contents. Users are expecting better video experience with any screen, anywhere and anytime. Operators will meet new challenges, but also see some big opportunities.
LRTV Custom TV
JDSU: Delivering Dynamic Networks for a Personalized Experience

3|26|15   |   5:59   |   (0) comments


Light Reading speaks to JDSU at Mobile World Congress 2015 about new solutions in the areas of HetNets, VoLTE, backhaul, virtualization, big data analytics, and real-time intelligence.
LRTV Custom TV
Smarter Service Chaining & New Ways to Benefit From Qosmos Technology

3|25|15   |   03:11   |   (0) comments


David Le Goff, director of strategic and product marketing at Qosmos, explains how the company has added application awareness to subscriber information to make service chaining more efficient and reduce costs for networking and infrastructure. In addition, Qosmos technology, which has been delivered as C libraries, is now also available as a virtual machine, ...
Between the CEOs
Qosmos CEO: The Changing Face of DPI

3|24|15   |   13:53   |   (0) comments


LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures. Also, how the comms market is becoming more like the automotive industry.
LRTV Huawei Video Resource Center
FC Schalke Scores With Its Agile Stadium

3|24|15   |   6:23   |   (0) comments


Top German soccer club FC Schalke 04 has deployed a new, agile WiFi network from Huawei in its Veltins-Arena stadium and is reaping the benefits in terms of customer satisfaction and business opportunities, explains marketing chief Alexander Jobst.
LRTV Huawei Video Resource Center
Huawei’s Insights on Mobile Video

3|24|15   |   7:51   |   (0) comments


More people than ever are now watching videos on smartphones. Seventy percent of mobile traffic will be video traffic until 2018. In this video, Huawei's exports give their insights on mobile video in terms of business model, network planning and 4G network construction.
LRTV Documentaries
The Rise of Industry 4.0

3|24|15   |   02:26   |   (8) comments


Are you ready for the fourth industrial revolution? It's a big deal for influential operators such as Deutsche Telekom.
LRTV Huawei Video Resource Center
Getting Connected With eLTE

3|23|15   |   06:04   |   (0) comments


Trunked radio communications have entered the 4G LTE world, and with Huawei's eLTE solution, can now deliver a full range of data and video services as well as push-to-talk voice, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
Funkwerk’s on Track With Huawei

3|19|15   |   3:23   |   (0) comments


GSM-R technology specialist Funkwerk and Huawei have forged a partnership that is benefiting both parties, notes Funkwerk's Gottfried Winter.
LRTV Documentaries
How EANTC Tested Cisco's Virtualization Solutions

3|18|15   |   5:49   |   (0) comments


Carsten Rossenhövel, managing director of independent test lab EANTC, tells Light Reading founder and CEO Steve Saunders about the innovative approach his team had to take when validating Cisco's service provider virtualization and cloud solutions.
LRTV Huawei Video Resource Center
Converged Communications: Working Simply & Smartly

3|17|15   |   03.24   |   (0) comments


Edwin Diender, CTO of Huawei's Enterprise Switch & Communications division, outlines the four main pillars of Huawei's unified communications portfolio and explains how the addition of 4K video capabilities has helped Huawei develop a groundbreaking videoconferencing solution.
Upcoming Live Events
April 14, 2015, The Westin Times Square, New York City, NY
May 5, 2015, Hyatt McCormick Place, Chicago, IL
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Hot Topics
Women in Tech Coming Into Focus
Sarah Thomas, Editorial Operations Director, 3/20/2015
Will Open Source Groups Keep Windows Open?
Carol Wilson, Editor-at-large, 3/20/2015
Google Hires Wall Street's Most Influential Woman as CFO
Dan Jones, Mobile Editor, 3/24/2015
The Rise of Industry 4.0
Ray Le Maistre, Editor-in-chief, 3/24/2015
Net Neutrality Suits: Only The Beginning?
Alan Breznick, Cable/Video Practice Leader, 3/24/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
Chattanooga’s EPB publicly owned utility comms company has become a poster child for how to enable a local economy using next-gen networking technology. Steve Saunders, Founder of Light Reading, sits down with Harold DePriest, president and CEO of EPB, to learn how EPB is bringing big time tech to small town America.
Cats with Phones
More Is More Click Here
T-Mobile's Buy One Get One Free deal was too much for Fluffy to pass up. He decided more was more.
Latest Comment