Sprint CEO Right Man for Right Company: Patterson

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Aug. 11 (Bloomberg) -- Patterson Advisory Group Chairman and CEO Jim Patterson and Bloomberg Intelligence Telecom Analyst John Butler discuss challenges facing Sprint’s new CEO Marcelo Claure. Patterson and Butler speak on “In The Loop.” (Source: Bloomberg)

Heads from here is the former president of sprint's wholesale business, now the ceo of patterson advisory group.

Also with us is john butler.

Jim, let me start with you since you are an industry insider, as is john, by the way.

You are less than impressed with mymarcelo?

I think he has a good entrepreneurial background.

Dan hesse did a lot of things to improve the company's ability . the most important thing, he finished up transforming this network.

Marcelo will be a good person to bring in at this point to take sprint to the next level.

I thought you were skeptical that he has the right skill sets coming from bright star to be able to lead sprint.

What is important to understand is not necessarily the company that he worked for, but the background that he brings to the table.

He is a no-nonsense guy.

He has got a lot of use and they -- he has got a lot of youth and vigor.

He does not have a lot of the history that telecom services providers have brought to the table thus far.

He has got to tackle churn and retention, that's the number one priority at this point.

Would you agree, john?

I would.

Sprint has been rebuilding their network over the last couple years.

They have what they call on terry churn -- they have what they call voluntary churn.

They knew when they upgrade to the networks they would lose subscribers due to network disruptions.

That is largely behind them.

They have a great asset to leverage.

It does from a technological challenge, upgrading the network, to a marketing challenge.

I think the transition from hesse to claure might be a very good one.

Marcelo claure built bright start from zero to $10.5 billion in revenue.

Cannot argue with that.

He has strong business acumen and an entrepreneurial streak.

For sprint to get off the mat, they need a little bit of that.

They need the entrepreneurial energy.

You think mafiosi saun -- you would think smasu san -- he is very tacky lading and hands-on.

He did the same thing with softbank in japan.

They want from being a small candidate to vying with the big guys.

I view the partnership here as a very clear one, i do not think any decisions are going to be made in a vacuum.

Instead of one or two players in telecoms, you have three and four.

Are we going to see a switch h? in prepaid realtail, the switch has occurred.

As of june, t-mobile has more prepaid retail subscribers than sprint, doing business under boost and virgin mobile.

Javonohn legere made a statement saying he plans on overtaking sprint and postpaid retail as well, that is a bigger challenge.

Over the past year, t-mobile has a raised 4 million of the gap, the ability to raise another 5 is not as big as you think.

What is going to be the killer for t-mobile?


In terms of winning, how is legere going to win.

He took t-mobile from a no-name, nothing carrier to a cool carrier.

They have gone from nothing to hot pink, which is their corporate color.

When i say killer, doesn't have to be a killer iphone plan?

It is all about branding.

He is brilliant at that.

He really has turned t-mobile into hot pink.

He has gotten out there with aggressive pricing.

It has resonated with consumers.

They're not -- their net adds have gone from negative to positive.

On a final note, claure is not well-known in the telecoms world.

Does that work against him?

I think it is going to be important.

Outside of fixing some of the price this advantage is he has on a few plans, the next most important thing for him is to really introduce himself to parts of the industry where he is not as well-known.

He has got to worry about getting connected and buildings.

He has got to build a very tight relationship with other partners in the space.

He can do that very quickly.

There are very good relationships with those companies, with sprint, but they want to see marcelo.

Thank you so much can the jim patterson of the patterson advisory group and also to john butler, telecoms analyst at bloomberg intelligence.

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Many are wondering, is it move

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