Recent reports have revealed that the Nextel network of Sprint will not be shutting down completely until 2013, as the firm is instead working on switching off the iDEN network.
During the quarterly conference call of the firm earlier during the day, Sprint executives came up with strategies meant for decommission cell sites during the latter half of this year and they also had an extended discussion on the financial benefits that can be expected by the implementation of the move.
Nextel fused into Sprint in an extremely and widely ill-advised deal ever transpired in the history of corporate world, with effects of the tragedy still being witnessed seven years after the disastrous merger. Today, the firm revealed the poor saga of yet another quarter running at a loss. Nextel, which earlier had around the same number of clients as managed by Sprint, has ended up proving nothing except an operational, financial as well as strategic commotion for Sprint. Shedding off Nextel provides Sprint an additional flexibility along with marking a vital and much-needed step forward in the direction of strengthening the ability of Sprint to turn things square beyond doubt.
It’s clear that the future might offer some sigh of relief for CEO Dan Hesse. While expressing his opinion regarding the downtime being faced by the company, along with expressing positivity regarding the future, he said that, “It's a big cost drain on the company to have to run two networks," Hesse told CNET in an interview. “We're finally in a position both financially and with our network to solve that in a productive and elegant way”.
However, closing a network will not be so easy, and the firm is already going through a rocky period since the last year. Therefore, it’s still a tight situation and only time can solve the puzzle for us here.
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