Sprint fired its Chief Operating Offier Len Lauer today. Amid Sprint’s multiple operational snafus over the past two quarters including introducing low cost plans (which only existing customers snapped up as opposed to new customers), lack of attractive handsets (only US national carrier without the hugely successful Motorola phones like Razr and other generally desirable handsets), strategy of attracting low credit customers ( causing high churn and payment default rates) and its falling stock prices – someone had to be made a scrapegoat – and understandably, it was Len Lauer – as the Operational head honcho of the company.
A lot can be written about the current state of Sprint – its merger pains with Nextel, the incomplete nature of the M&A due diligence and the corresponding siloed nature of upper management etc. – a lot of that can be attributed to a big merger that Sprint and Nextel went through – but looking forward, my opinion is, Sprint is headed the right direction in terms of its macro level strategic direction – be it the focus on 3G data services or the synergies built with MVNOs or spinning off their local phone service.
I think this is the beginning of a new big restructuring and I think it is needed to begin a long due turnaround.
Time will tell.