Suffering Sprint fires execs, files patent infringement suits

By Jacqueline Emigh | Published January 24, 2008, 3:18 PM

Will Sprint-Nextel's strife never end? A week after announcing the loss of still more wireless subscribers, the cellular specialist today canned three more top execs while filing more lawsuits seeking financial damages.

While AT&T announced the addition of 2.7 million new wireless subscribers today, its suffering competitor Sprint Nextel fired three of its top executives and filed a patent infringement lawsuit seeking monetary damages from four smaller phone companies.

Sprint's latest executive reshuffle and legal maneuvers follow its own announcement last week that it now has only about 53.8 remaining wireless customers, after losing subscribers during the last quarter of last year.

Also last week, Sprint officials said that, in efforts to cut costs, the company will lay off about 4,000 employees and close about 8 percent of its retail stores.

Sprint's troubles really began back in 2005, when the company purchased Nextel. Ever since, Sprint has been struggling to provide adequate physical upgrades and customer service around a total of three wireless networks.

Aside from its own long-time cellular network and that of Nextel, the company is also trying to deploy a nationwide 4G WiMAX wireless broadband network, with the unique brand name Xohm.

Last month, Sprint exec Paul Saleh publicly admitted that Sprint had been actively considering attracting investment money by spinning off its WiMAX network and then purchasing back broadband capacity from those investing in the WiMAX network.

Saleh, a top level financial and management executive, is now gone from Sprint as of today, along with Tim Kelly, chief marketing officer, and Mark Angelino, president of sales and distribution.

Next week, Verizon Wireless, Sprint's other major rival in the US cellular business, is expected to release its quarterly financial results. But like AT&T, Verizon Wireless has been gaining wireless subscribers, while Sprint's subsribership has continued to slide. Saleh, Kelly, and Angelino are far from the first executives to be forced out of Sprint's revolving door in recent months. Sprint's board scuttled CEO Gary Forsee in October, replacing him in December with Dan Hesse, previously the CEO of Sprint spin-off Embarq.

The temporary replacements for Saleh, Kelly, and Angelino -- who are hail from within the company -- will report directly to Hesse.

Members of the new interim management team include William G. Arendt as acting chief financial officer (CFO); John Garcia as acting chief marketing officer (CMO); and Paget Alves as acting president, sales and distribution.

Also today, in what might be considered a further indication of Sprint's ongoing financial strife, Sprint filed lawsuits in the US District Court in Overland, Kansas against NuVox Communications, Inc.; Broadvox Holdings, LLC; Big River Telephone Company; and Paetec Communications, Inc.

Seeking monetary damaages through the lawsuits and injunctions against further patent infrigement, Sprint claims that each of these four smaller phone companies has infringed at least six of Sprint's Voice-over-packet (VOP) patents by selling VOP services that use the technology.

In similar lawsuit filed in 2005, Sprint was awarded $69.5 million in damages from Vonage Holdings through a jury judgment. Soon afterward, Vonage agreed to take a license under Sprint's VOP portfolio and paid $80 million to Sprint.

In 2006, Voiceglo Communications settled a similar case with Sprint by paying an undisclosed sum, also in exchange for a license to Sprint's VOP portfolio.

Comments

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Nextel was doing good way before Sprint bought it out and ruin the name Nextel. Nextel's stock by itself was over $24 a share a few yrs ago and when Sprint bought Nextel, the stock has gone downhill from there to prove that the company has been losing customers and letting CEO's and other people go and that just shows how lam brain the board members and other people up high in the chain are to not see how complete stupid people they have running the company there.
What needs to happen is Sprint and Nextel need to go back before the buy out and be seprate companies and bring back Tim Donahue that ran Nextel better than that dumb Gary Forsee that was a compelte brainless dumba** and the current CEO hasn't shown any improvement if Sprint/Nextel is still losing customers and now laying off 4,000 people there.

Just my .02

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Thier eyes were shut during this Vision quest

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As an irritated Sprint customer, I would suggest that Sprint start putting out some decent phones, and - even more importantly -freakin' unlock their bluetooth so you can actually transfer files. Other than that I've never had a problem with them though - their coverage is good, and at least they're not part of the evil SBC/ATT dishonest-billing conglomerate. I've had nothing but problems with them for 5 years now on home phone and internet, so I'm weary of switching to their wireless service...

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I dont understand why Sprint customer support is so bad, with only 53.8 Customers remaining you would think there would always be a line open. I can see why they are firing 4000 employees though, its got to be rough trying to split up each customers phone bill between 75 employess, I sure hope (for the employees) they have a high minute plan.

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"Sprint officials said that, in efforts to cut costs, the company will lay off about 4,000 employees and close about 8 percent of its retail stores."

It begins... Good riddance

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They need to fire their whole line of executives, and bring in some entrepreneurs. Retrain their customer support rep.

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Now Sprint is resorting to SCO tactics? What a pathetic company.

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"...it now has only about 53.8 remaining wireless customers, after losing subscribers during the last quarter of last year."

Oh dear. That's not many customers, is it?

*giggles to self*

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Yeah, I hate to see what the .8 guy looks like.

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She's on WeightWatchers?

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The other big players in the wireless phone market are probably circling above Sprint like vultures right now seeing if they can buy them out and absorb what customers they have left.

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Isn't Sprint the company who dropped customers for calling customer service to much?
What do they expect to happen when Customer Service won't serve Customers?
That sort of publicity doesn't exactly help them retain existing, or attract new "good" customers.

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That is exactly true. You could look at it this way... if you want to get out of your Sprint/Nextel contract, call customer service 20 -30 times a day. I know I would.

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When are they going to get rid of Amdocs? It's obvious that Sprint/Nextel didn't do their homework when selecting Amdocs to integrate their billing systems. All Sprint/Nextel had to do was look up north (Toronto, CA) at how well Amdocs implemented their billing system at Bell Mobility. Rumor has it that Amdocs personnel are not to bring up or talk about Bell Mobility, LOL.

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It's "Overland Park, Kansas"

Poor Sprint.

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loosing customers, now with sprintspeed

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