Tuesday, 9 October 2007

Sprint’s WiMax Launch Uncertain With CEO’s Exit

Sprint Chief Executive, Gary Forsee stepped down after the weak financial results of the cell phone carrier. CFO Paul Saleh will become the acting CEO until a new replacement is found.

Forsee will not be able to see his pet WiMax project go live. Sprint’s WiMax technology is a fast data network designed to extend its reach beyond cell phones to computer, cameras and other gadgets. Forsee spent a huge amount to bring this project live. So far, the expensive project has been met with delays and technical hurdles.

WiMax, or Worldwide Interoperability for Microwave Access, allows high-speed and cheap Internet access and file downloads from laptops, phones or other mobile devices over greater distances than previous technologies.

The cell phone company is struggling to cut costs, add revenue and subscribers so that it can run the race with its competitors AT&T, Verizon Wireless who are way ahead of Sprint in terms of revenue and subscribers.

WiMax will not be rolled out until late 2008. Sprint is still testing the mobile technology.

It announced its partnership with start-up Clearwire to combine forces and speed rollout as Clearwire was also trying to build its own network. Now Sprint says the finalisation of the Clearwire deal is being delayed. Management shift could be another reason for the delay Sprint in finalising its contract with Clearwire to build out the network.

WiMax is in par with the technologies of the high-tech countries like Japan and South Korea. The timely successful launch will again bring Sprint to the top in the wireless business.