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Overview of Sprint

Sprint, otherwise known as Sprint Nextel Corporation is among the top three wireless network providers in the United States. The company has struggled in the last 10 years to maintain its position as a competitor in the industry due to lack of customer satisfaction, subscriber loss, and overall lack of shareholder confidence. In an effort to revive Sprint's position in the wireless network industry, Daniel Hesse was appointed as the most recent Chief Executive Officer. Although the company appears to be meeting its landmarks and goals set by Sprint's newest leader, recent news states the intent of a Japanese telecommunications company to purchase a major portion of Sprint Nextel Corporation.

Company Profile

The Sprint Nextel Corporation(NYSE: S) is a Fortune 500 telecommunications company in the United States mostly known for its wireless network services and previously for its land-line telephone services. Sprint currently serves more than 56 million consumer, business, and government customers across the United States. Daniel Hesse currently serves as the company's Chief Executive Officer since 2007. There are 10 members of Sprint's Board of Directors, which is headed by a Non-Executive Chairman, James H. Hance, Jr.


The Sprint Nextel Corporation was founded in 1899 by Cleyson and Jacob Brown as the Brown Telephone Company. Initially, the phone company was established to provide telephone service Abilene, Kansas. Since its inception, the company has been known as several different names such as United Telephone and Electric, the United Telephone Company, United Utilities, Inc., United Telecommunications, Southern Pacific Communications Company, and Southern Pacific Railroad Intercontinental Network of Telecommunications, aka SPRINT.


Sprint Nextel Corp., although currently known for its wireless network services, offers several products under different brand names. Sprint also owns the rights to other brands including Boost Mobile, LLC and Virgin Mobile USA, Inc., among many other subsidiaries and shell companies.

Geographical Organization

Sprint's headquarters is currently located in Overland Park, Kansas. However, as a national wireless network provider, the company owns property across the United States. In addition to its U.S. properties, Sprint is also located in Germany, China, Australia, Austria, Singapore, Japan, Taiwan, Belgium, and the U.K. as a product of its subsidiaries.


By 2007, Sprint had maintained a seat amongst the top three wireless network carriers in the United States. Its major competitors include AT&T Wireless and Verizon Communications. Although the company controls a large market share, Sprint's future was threatened as a result of losing subscribers and stagnant revenues

On December 18, 2007, Sprint announced that Daniel Hesse would become its Chief Executive Officer only months after Sprint fired its previous CEO, Gary Forsee. Hesse inherited a company not with the worst customer satisfaction in the mobile industry, but amongst the work in customer satisfaction in all consumer industries. Since taking his position, Hesse has lead Sprint to be ranked #1 in wireless provider customer satisfaction by J.D. Power and Associates (2012) three years in a row.

Financial Performance

Sprint's current operating income is -231 million for Q3 of 2012, which is nearly a half of a million less than Q3 for 2011. The company's net loss at the end of the third quarter is 767 million, which results in a net loss of 0.26 per share of common stock. Note that Sprint has not paid dividends to shareholders since December 2007. Sprint's stock value, on the other hand, is currently over 5 per share, which is a 111% increase from December 2012.

According to Sprint's third-quarter financial summary, its current negative financial situation is a result of its most recent deployment of Apple's iPhone and of construction sites to provide wireless services to more subscribers. Sprint kindly names its attempt at growth as an implementation of the "Sprint Network Vision". Despite the alleged future net financial gains, in November 2012, Softbank announced its agreement to acquire 70 percent of Sprint. Softbank, a Japanese mobile telecommunications company, is expected to close the deal by late 2013.

Human Resource Management

Sprint Nextel Corporation currently directly employs over 40,000 full-time workers. The company boasts itself as one of the "Best Employers for Healthy Lifestyles", the "Most Valuable Employer of the Military", and a "Top 10 Company for Newsweek Green Rankings".

Sprint notes on its employment section of its website that "People are the heart of Sprint's competitive energy." This is most likely a reflection of Daniel Hesse's effort to redefine the customer's perception of Sprint and the wireless industry as a whole. One of Hesse's main concerns when taking the position as CEO was subscriber-loss due to customer satisfaction. As most academics would agree, creating a positive work culture would cause the customers to reflect the service oriented happiness of the employee. It would appear, at least on the surface, that Mr. Hesse's goal was met.

Company Strategy

Sprint's corporate strategy has been termed by its board of directors as the "Sprint Network Vision", which capitalizes on the company's previous marketing campaigns. In 2007, the company took a customer-oriented approach to the wireless market. The "Sprint Vision" includes customer retention, successful integration of "green" practices, and price leadership through its "Everything Plan".

Of the most notable of its corporate strategy is Sprint's nomination of a non-executive as Chairman of the Board of Directors. This is allegedly an effort to ensure integrity, responsibility, and ethics in the practices of the company's leadership. Actually, it appears to be more of an effort to rekindle investor confidence in a company currently lacking.