Why I think Hesse is prepping Sprint to be Sold

[AnthroMatt]

These are not necessarily original thoughts, but they are what I think....

• New Plans -- Hesse himself has been quoted as stating that one of the reasons to change to the new Simply Everything plans was that it will simplify billing, thus reducing the need for many calls into customer service. This IS NOT fixing customer service, but rather fixing the need to call customer service. I have still had billing issues for 3 months in a row since switching to one of the new Sprint plans, and when I have called in to get the issues resolved, I have not detected any improvement whatsoever. So rather than improve the customer experience when they do need to call in to CS, Sprint is hoping to reduce the need to call in. This saves them money in that lower call volume should mean lower costs and it helps reduce the number of people that say "Sprint Sucks" without actually having to improve agent training..
  
  
• New Policies -- Sprint adopted Nextel's warranty and repair policy post acquisition. Nextel's policy always included repair of physical damage provided the customer was paying for the monthly ESRP coverage and that the phone was in repairable condition (main circuit board intact and device in no more than 2 pieces). Sprint is now going to send customers to Asurion if they have TEP ($50 deductible) or charge $99 for phone and $119 for PDA repair due to physical damage. The problem is, now it is the word of the tech to say defect or damage. It creates a huge grey area sure to infuriate the customer. Of course, it will save Sprint a lot of money on phone repairs, which will improve the bottom line, again at the customers' expense.
  
  No more "roam only" options on handsets. This used to set Sprint apart. It made for customizable coverage and improved customer experience. Sprint has removed this option from all new devices and eliminated it from others with firmware updates. This policy cannot help the customer in any way...it will only be a transparent change or a negative one. But Sprint will potentially save money on roaming costs, so again, good news for the bottom line.
  
  
  Introducing the 5GB data cap for data card users and requiring high end data plans for new PDA device activations. I don't think I need to elaborate on either of those....
  
  
• Trimming the Fat-- Layoffs and store closings happen all the time in many businesses. This improves the bottom line and impresses investors, with the only casualty being an expendable employee here or there and diminished customer service (longer drives to stores, more outsourcing of repair, etc.).

It just seems to me that most of the changes at Sprint seem to be focused on improving the bottom line, rather than the publicly made claims of trying to improve customer service first. If Sprint can turn it's numbers around (even a loss of 250K next quarter would be a big "improvement") it becomes more attractive to potential suitors.

Of course I don't expect Sprint to sacrifice the bottom line to appease everyone, but I also can read into many of the changes and in all of them it would seem when it is time to rank the motivating factor behind the changes, improving Sprint for the customer is never the impetus for the change.

[WumpusVA]

Nice write up AnthroMatt.

I will throw in my two cents later... but I just wanted to say that I think you are right on the money with your thoughts on Sprint.

[Quint101]

That's some scary stuff! I don't really think that Sprint is going to be sold, but one can never tell in the telecom world! Nice opinion, though. I wonder who will buy it IF it's sold...

[AnthroMatt]

Originally Posted by Quint101

That's some scary stuff! I don't really think that Sprint is going to be sold, but one can never tell in the telecom world! Nice opinion, though. I wonder who will buy it IF it's sold...

I would expect either a company with no current wireless offerings or a foreign telco would be the most likely to buy. After the Sprint-Nextel merger issues, I would be shocked to see an existing carrier (ex: T-Mobile) with no CDMA network as a buyer.

[Steve B]

Originally Posted by AnthroMatt

These are not necessarily original thoughts, but they are what I think....

• New Plans -- Hesse himself has been quoted as stating that one of the reasons to change to the new Simply Everything plans was that it will simplify billing, thus reducing the need for many calls into customer service. This IS NOT fixing customer service, but rather fixing the need to call customer service. I have still had billing issues for 3 months in a row since switching to one of the new Sprint plans, and when I have called in to get the issues resolved, I have not detected any improvement whatsoever. So rather than improve the customer experience when they do need to call in to CS, Sprint is hoping to reduce the need to call in. This saves them money in that lower call volume should mean lower costs and it helps reduce the number of people that say "Sprint Sucks" without actually having to improve agent training..
  
  
• New Policies -- Sprint adopted Nextel's warranty and repair policy post acquisition. Nextel's policy always included repair of physical damage provided the customer was paying for the monthly ESRP coverage and that the phone was in repairable condition (main circuit board intact and device in no more than 2 pieces). Sprint is now going to send customers to Asurion if they have TEP ($50 deductible) or charge $99 for phone and $119 for PDA repair due to physical damage. The problem is, now it is the word of the tech to say defect or damage. It creates a huge grey area sure to infuriate the customer. Of course, it will save Sprint a lot of money on phone repairs, which will improve the bottom line, again at the customers' expense.
  
  No more "roam only" options on handsets. This used to set Sprint apart. It made for customizable coverage and improved customer experience. Sprint has removed this option from all new devices and eliminated it from others with firmware updates. This policy cannot help the customer in any way...it will only be a transparent change or a negative one. But Sprint will potentially save money on roaming costs, so again, good news for the bottom line.
  
  
  Introducing the 5GB data cap for data card users and requiring high end data plans for new PDA device activations. I don't think I need to elaborate on either of those....
  
  
• Trimming the Fat-- Layoffs and store closings happen all the time in many businesses. This improves the bottom line and impresses investors, with the only casualty being an expendable employee here or there and diminished customer service (longer drives to stores, more outsourcing of repair, etc.).

It just seems to me that most of the changes at Sprint seem to be focused on improving the bottom line, rather than the publicly made claims of trying to improve customer service first. If Sprint can turn it's numbers around (even a loss of 250K next quarter would be a big "improvement") it becomes more attractive to potential suitors.

Of course I don't expect Sprint to sacrifice the bottom line to appease everyone, but I also can read into many of the changes and in all of them it would seem when it is time to rank the motivating factor behind the changes, improving Sprint for the customer is never the impetus for the change.

Very interesting. I especially agree with the statement about Sprint not really trying to improve customer service but rather just eliminating the need for people to call in. That is literally doing a half-assed job. It's good eliminating reasons to call in but, no matter how good your service may be, there is still things for people to call in about and if you don't have better trained reps then you have waisted all that time and effort. If Sprint does indeed get sold, I really hope the new company turns things around. If they aren't sold, I hope Dan Hesse changes course just slightly to actually improve customer service as well as eliminating the reasons to call in.

[larry]

I don't think the 'roam only' option being taken away is going to matter much except to us forum people. Because I have to wonder how many users actually knew about and used, or even needed to use that function to begin with. The average every day user probably would never use 'roam only' anyway because of lack of knowledge of the phone's options and because believe it or not most Sprint users I talk to (who aren't on wireless forum like us) still think roaming is an extra charge and are afraid to use it.

A few years ago I would have been pissed to lose the roaming only option but now I wouldn't care at all. I absolutely do not roam in market these days due to awesome improvements in Sprint's coverage since the Nextel merger and even if a situation came up where I needed to I would still have the automatic roaming capability. Oh and my LG Rumor still have the roam only option and if Sprint and LG release a firmware update that removes I will have no qualms about getting that update as long as it fixes some other bugs with this phone. lol

But I agree with Matt on some of the other changes.

[AnthroMatt]

Originally Posted by larry

I don't think the 'roam only' option being taken away is going to matter much except to us forum people. Because I have to wonder how many users actually knew about and used, or even needed to use that function to begin with.

I thought so too...but then why remove it? If not many people are even aware of it, it doesn't seem like it would be a big deal to keep it there. I figure Sprint must have thought it was costing them money. There has been a force roam option (even if it was only "Analog Only" option for a long time) with Sprint for at least 9 years. Now it is gone.

[larry]

My guess is there were some people totally abusing the function. Probably not a whole lot but still if they can find ways to cut a few costs here and there they're probably going to do it.

They have had a force roaming option since at least 1999 (on dual band phones) but back then there was no free roaming. But I'm guessing Sprint didn't mind including that feature because they had nothing to lose.

[Steve B]

Originally Posted by larry

My guess is there were some people totally abusing the function. Probably not a whole lot but still if they can find ways to cut a few costs here and there they're probably going to do it.

They have had a force roaming option since at least 1999 (on dual band phones) but back then there was no free roaming. But I'm guessing Sprint didn't mind including that feature because they had nothing to lose.

You're probably right. Although, I thought they would boot customers who roamed too much. With that in mind they could've kept the option open.

[AnthroMatt]

Originally Posted by Steve B

You're probably right. Although, I thought they would boot customers who roamed too much. With that in mind they could've kept the option open.

Yup. It's a move that is in no way customer-friendly, though not necessarily "harmful" to the customer. Just another example of extreme penny pinching that will not make anyone happy, but could piss off some people IMO.

[Steve B]

Originally Posted by AnthroMatt

Yup. It's a move that is in no way customer-friendly, though not necessarily "harmful" to the customer. Just another example of extreme penny pinching that will not make anyone happy, but could piss off some people IMO.

Yeah, even if its a few people. Word of mouth can hurt. It has hurt Sprint before and can do it again.

[liagb59]

I used the auto roam when needed, like when I travel to Pa. no Sprint service there at all, so I bounce off of Verizon...but that is not needed too much I go there a few times a year to see family. Sprint needs towers there..that would be nice, but you are right...people do abuse the issue and it does cost money..

[RadioRaiders]

Originally Posted by AnthroMatt

It just seems to me that most of the changes at Sprint seem to be focused on improving the bottom line, rather than the publicly made claims of trying to improve customer service first. If Sprint can turn it's numbers around (even a loss of 250K next quarter would be a big "improvement") it becomes more attractive to potential suitors.

I think Sprint is just hemoraging losses and if they don't stop the bleeding, they'll cease to exist as a company. So it looks like Hesse is doing just that: trying to find ways to quickly bail them out. And 9 out of 10 times that means lay-offs, down-sizing, etc. Sometimes you have to cut off the arm to save the rest of the body. Once (and if) they can stabilize the company and stop the financial losses, they can focus on actually improving things (like better CS, etc.). If they plan to sell it or build it up is anyone's guess.

[Collegeville]

Didn't he do just what your saying with AT&T? They were getting their butts kicked, he introduced Digital 1 to give customers more "value" and started to turn things around just to sell out to Cingular? Lets not forget that the execs make lots of money when a company gets sold off or parted out. If they and the stock holders feel that they can make more money in a sell off than they stand to make staying the course, bye bye Sprint.

[liagb59]

True, but who do you all think would Sprint sell too, who do you think will buy them up?

[Collegeville]

First sold to investment firm. Then parted out. Some assets to another carrier and some left for dead.

[larry]

Seems like every month a new rumor comes out that Sprint will be bought out by someone. It hasn't happened. If Sprint has survived through all of that I still think they will make it alone.