Sprint Nextel (S) CEO Gary Forsee may be lingering in his office these days. Heading outside could be dangerous. Relational Investors LLC, which owns almost 2% of Sprint’s shares, is being less than polite about disapproving of Forsee’s performance. The Wall Street Journal quotes the head of Relational as saying, "We have lost confidence in Gary Forsee."
Investors are impatient with the poor performance of Sprint’s share price and its inability to add subscribers while rivals AT&T (T) and Verizon Wireless pack on new customers every quarter.
Relational and it supporters are equally upset with Forsee’s plan to spend $5 billion to build a national WiMax network. But, that is where they miss the point.
Sprint (24/7 view) has little chance of adding a large number of new customers or making headway against it larger competitors without some unusual advantage. WiMax, with its ultra-fast wireless capacity, could power both handsets and PCs on the Sprint network. The technology is faster than the 3G platform used in traditional wireless broadband installations. It is supported by R&D work and investment capital from Intel (INTC) and Motorola (MOT).
If WiMax works, it will change the face of wireless communications. If not, Sprint’s shareholders will not be much worse off than they are today.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
