Economic Troubles to Have Minimal Impact on Sprint Nextel, Says Dan Hesse

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Economic Troubles to Have Minimal Impact on Sprint Nextel, Says Dan Hesse

6:00 am on October 10, 2008 | Category: Business, Wireless, Corporate

Troubled economic times could cause some difficulty for Sprint Nextel as it struggles to get back on its feet, but landline telephone companies have much more reason to worry about the current recession, according to Sprint CEO, Dan Hesse.

“We have seen some economic impact in recent months, but not a dramatic impact,” Hesse said at a recent event to mark the release of his company’s WiMAX service in Baltimore, Maryland. Although some businesses have cut back on their wireless spending, consumers are apparently spending just as much on cell phone service.

“On the consumer side, wireless has become a staple,” Hesse explained. “People would rather give up their TV or Internet access before they give up their cell phone. We believe we are more insulated.”

Traditional telephone carriers are in a much different position, however, as an increasing number of Americans go wireless-only, or use VoIP for their home phone needs.

“As customers look at their bills, they are far more likely to cut the cord,” Hesse predicted.

Sprint expects to release its third-quarter financial results in about a month, Hesse said, noting that “there will be some (economic) impact on our business, but compared to most other industries we are relatively well insulated.”