At it's zenith Nxtl employees produced revenue greater than $1M per employee versus S/Nxtl's current ~$589K/employee/year.
It looks like DH will need to fire half of the employees to attain the productivity levels that Nxtl had.
Right you are. The problem is, the Sprint folk have never admitted that they did anything wrong, they just blame it all on Nextel. Hence, the learning to which you referred has not taken place where it counts, i.e. at Sprint headquarters in Kansas City. Therein lies the issue, and I am pretty darn sure that's why xnextel posted the facts in the first place.
I can only speak for myself, but if the legacy Sprint bozos would face facts, 'fess up, and actually APPLY that learning so as to rebuild both Sprint & Nextel in positive ways that provide value to shareholders & customers, then the legacy Nextel folks might be able to finally stand down. But as long as the legacy Sprint folk keep blaming it all on Nextel, and not giving credit where it is due, then those of us who actually care about (A) accuracy and (B) building value, can't let down our guard. Ball is in Sprint's court, so far they refuse to see it.
XNEXTEL, I think you pretty much summed it all up with this posting! Obviously more insightful and articulate than this thread deserves (me included).
You hit several key issues; handsets, network, BOD/DH, capex to name a few.
There is observing what happens and learning from it, and there is whining about what "used to be" on these boards.
New acronymn - ARPE! Agree; too many employees and S should have realized this integration synergy benefit from the merger by now. The company has six-figure employees working at home, part-time; meanwhile, Mr Hessee is spending his time becoming a television star.
OK, I get it. It's Nextel's fault for being able to sell solutions and clearly differentiate its products to customers willing to pay a slightly higher price for those. It also meant that Nextel had the highest customer lifetime value in the industry...meaning loyalty.
I guess striving for higher margins, increased shareholder value, and customer loyalty is bad business...
When I stated, "...they just might find that there is a lot of shrubbery in need of trimming." I should have said that what is really needed is a complete deforestation in order to get the combined S/Nxtl back to its former efficiency levels.
One other point I would like to make is that if S did not reduce the Nxtl ARPU by reducing Nextel rate plans to $50/unit/month and kept the ARPU at about $60, it would have been able to use the $10 differencex14 million subs=$1.4B per year to build out the network. Assuming each tower costs $500K that would translate to greater than 1,000 cell towers with money to spare. But, S, once again did not get it. They diminished the Nxtl brand by reducing ARPU to that of the S CDMA voice only phones. S decided that they would migrate Nxtl customers to CDMA. S had a plan but didn't have the hybrid phones to accomplish that task. They were woefully behind schedule in regard to that strategy. I might add that that failure to implement and execute in a timely manner is an exemplification of S based on my own 'painful' experience dealing with the company as both an employee and a customer. Did they really think that customers cared about which network they were on? Customers only cared about their ability to use the phone in their hands. S neglected to consider that customers make the ultimate purchasing decision by exercising their right to stay with a company or leave it for what they consider to be better service, features, advantages, benefits and value.
Today, S continues along the same old track of selling the 'Now Network' as if it were a commodity. It's only differentiator is a difference of $240 per year vis a vis similar offerings from VZ and T. They continue to do this while T continues to sell the 'front end' of the network, the handsets. T understands that in order to win in the marketplace a company must focus customers' attention on its strength(s). In their case it was the iPhone even when T's data network was sub-standard (2G)relative to the competition. The result, which is history and is factual, is that they sold more iPhones than any other handheld device, ever, period. The next iteration of iPhone sold more in 1 Quarter than S sold of any type in years.
Face it, S, needs a 'brain transplant'. They have continued to 'fail' to understand their market, their customers, their competition and themselves. Without new, fresh blood, and new ideas, they will be doomed to repeat the mistakes of the past.
My last point is that DH was brought in to bring the new ideas. Remember that when he was at AWE, prior to its being purchased by SBC, prior to its transmuting itself into ATT without the legacy sclerotic bureaucracy of yore, AWE was failing vis a vis Cingular, and just about everyone else in the wireless space save for S.
S needs to take drastically reduce 'head count' and bring in those with proven, demonstrable and successful work histories to provide the necessary changes that would lead to a righting of its ship. Otherwise, it is doomed to remain an industry laggard stuck in the mire of its own making until the lights are turned off for good and the assets are assumed by a better operator.
Just my humble opinion.
Monkeyfist, talk about childish, opinionated gum-flapping - you're bringing that to new heights.
The comparisons in this post have all been historical. That was the point of the original poster's comments, and all of the FACTUAL, SUPPORTING information I and others have posted here. Just read THE FACTS and pay attention to the CONTEXT of the original post, and you will see that your comments are (a) entirely off point and (b) childish and decidedly non-illuminating.
But since you've made your opinions on PTT known so eloquently (not), please enlighten us further on your latest comment that PTT has no value and we should move on. Why, then, are the two largest and currently the most successful wireless providers in the US (i.e. Verizon & ATT) both falling all over themselves to try to emulate the performance and past success of Nextel's iDEN-based PTT system? Why are Verizon & ATT falling all over themselves in the race to add truly rugged handsets, a la Nextel? If you are so brilliant and Sprint-Nextel and the remaining 13,000,000 Nextel iDEN customers are so stupid & antiquated as you claim, why then are the GIANTS of the industry frothing at the mouth to create competitive PTT systems and flesh out their glitzy, pink-puff phone lines with manly phones that can survive daily use in the outdoors?
Methinks you are nnot nearly as wise as you thinks you is, Mr or Ms Monkeyfist.