Sprint’s new CFO gets a handful
Robert Burst took over as Sprint’s chief financial officer today, and I’m sure he’s had better first days on the job. If Standard & Poor’s cutting Sprint’s credit rating to junk status wasn’t enough, a federal appeals court sided with the FCC, requiring Sprint switch off its iDEN network in 800 MHz in all markets by June 26, regardless of whether the public safety agencies occupying its replacement spectrum are ready to leave.
Sprint has said in an SEC filing that such a flash-cut could cost it $3.4 billion, leaving millions of customers–including public safety customers–without service or with reduced service. And in case Sprint wanted to go to the markets to raise funds to offset that shortfall, it will find itself paying some stiff interest rates.
“I am naturally drawn to challenges, but I view this role within Sprint as a true opportunity,” Burst said in a Sprint statement. “Challenges” may be a bit of an understatement here, but Burst certainly has experience with troubled companies. For 7 years he was the CFO at Eastman Kodak, the film and photo paper manufacturer that saw its core business crumble as the digital camera age emerged. Sprint faces a different problem. Wireless is by all means a healthy business. Sprint just needs to execute better and fend off the growing dominance of AT&T and Verizon. Simple task, right?
Related Topics: Wireless, WiMAX, VoIP, Regulation, All Stories
