Sprint Nextel’s hiring Dan Hesse as CEO is a ‘positive step,’ but...

track record of brand-building at Embarq, but there is no track record to draw upon with respect to how his vision for a new Sprint Nextel will come together,” the bank said. Hesse must act fast. “As a relative outsider, the first test for Hesse will be to quickly assimilate the state of Sprint and what steps are necessary to reinvigorate the business,” it said. “The longer Sprint’s current course deviates from its ultimate course, the more time-consuming and expensive the fixes become.” Bank of America expects Hesse to hold an investor meeting in mid-March to discuss Sprint’s 2008 and 2009 game plan, it said. Hesse is no stranger to Sprint or wireless. “For those investors seeking external, outside- the-industry candidates, Hesse is as close to an insider as they come,” said Current Analysis’ William Ho. In 2005, ex- Sprint CEO Gary Forsee hired Hesse to run Sprint’s wireline business, later spun off and renamed Embarq. From 1997 to 2000, Hesse had led the old AT&T Wireless as president and CEO. His industry experience is valuable, Ho said. “Sprint is bleeding and needs someone who knows the business now without any learning curve.” Hesse probably won’t “make the dynamic changes” needed at Sprint, Pali Capital said. “While Hesse might communicate a plan that portends to improve the operational results and culture at the company, we fear that it will be the typical corporate 10-point plan that lacks the radical change and immediate action necessary to set a new course for Sprint.”