Sprint Nextel has hired a new CEO and confirmed that it plans to begin field-testing its Xohm-brand WiMAX network within the next two weeks. Several hundred Sprint employees in the test markets – Chicago and Washington, DC/Baltimore will get WiMAX adapter cards for PCs in phase one. A second-test stage will add more employees in the first quarter.
A commercial rollout is expected in the last half of 2008 and will include devices that have WiMAX embedded in them. Intel is not expected to have its WiMAX/Wi-Fi chipsets ready for shipment until sometime in the second quarter of 2008.
New Man at the Helm
This week Sprint Nextel hired Dan Hesse as its new president and CEO. He replaces Gary Forsee, who resigned under stockholder pressure in October. Hesse has been chairman, president and CEO of the wireline phone company Embarq since it was spun out of Sprint in 2006. He worked for AT&T for 23 years, including a stint as president and CEO of AT&T Wireless Services from 1997 to 2000.
Sprint and Hesse face financial and operational problems. Its 2005 merger with Nextel resulted in the continuing loss of subscribers. It decision to bet the house on WiMAX has been questioned because WiMAX as a mobile phone service is still an unproven technology. The turmoil caused Sprint’s deal with Clearwire to build a compatible but not overlapping national WiMAX network to fall through. There are those that predict the deal will be resuscitated in late 2008, once Sprint’s plans are in place – such as whether to spin out the Xohm WiMAX operation or to bring a deep-pocketed company or companies in as partners. Intel, Samsung, Motorola and Google have vested interests in seeing the Xohm effort succeed.