The news of the regime change at Sprint has likely set in for subscribers and employees alike, and things are looking like they’re about to change(hopefully for the better)for Sprint in the coming weeks and months. After news of Marcelo Claure, who was previously BrightStars CEO(another company owned by Soft Bank), taking over as the next CEO for the 3rd largest U.S. Wireless carrier hit the media, questions began to arise on what was next for Sprint? For Claure, that answer is an easy one and a decision that should help them fight back in the ever competitive wireless industry. Price plan reductions. Lowering plan prices is a top priority for the new CEO and that priority trickles all the way down to the retail level, with price changes coming as early as next week according to Claure.
Claure offered these words today during a call involving all employees and executives, stating that “We’re going to change our plans to make sure they are simple and attractive and make sure every customer in America thinks twice about signing up to a competitor.” He is already beginning to sound a little like another CEO that many of us might be familiar with, one John Legere, the popular CEO from the nation’s 4th largest wireless carrier, T-Mobile. Claure’s plan is to completely disrupt the wireless market with new plans and pricing, and it won’t be long before we find out exactly what those plans will look like cost wise. Not too long after they announce the changes, we’ll begin to see whether or not it’s having the desired effect that Claure is looking for.
Sprint has a heavy focus going forward on competing with it’s two biggest competitors, AT&T and Verizon Wireless, who currently hold the number two and number one ranks in the U.S. wireless industry respectively, something that hasn’t changed in quite some years. With a focus diverted from competing directly with T-Mobile to see who can offer the most competitive prices, Sprint’s plan pricing changes will probably reflect something closer to equal footing with T-mobile, rather than trying to beat them to the bottom in cost while still offering attractive packages. Claure also has other plans for the makeover which come after they begin to tackle the pricing arena, like improving their overall network and finally reducing operational costs. That could mean more job cuts, although Claure wasn’t necessarily specific on network improvements or how they plan to lower the cost of operations. One thing is for sure, Claure seems to know what Sprint needs to potentially pull them out of the deep dark hole they have fallen into. It starts with lower prices for customers, and continues with disrupting the industry in other ways later.
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