Sprint Nextel Corp.'s announcement Thursday that it will "rejuvenate" its beleaguered integrated digital enhanced network is another way of saying the company is not selling the wireless systems it obtained from its $35 billion merger with Nextel.
The million-dollar question for Sprint Nextel's president of strategic planning and corporate initiatives Keith Cowan (pictured) is whether the move qualifies as a board-approved "strategic resolution."
In a letter attached to the Overland Park, Kan., telecom's second-quarter report in August, Sprint Nextel CEO Dan Hesse states that Cowan would receive a $1 million bonus "upon the board's approval of the strategic resolution of the iDEN network." The iDEN systems have not fared well since the 2005 merger, and have led to customer defections.
The rejuvenation program involves a long-term networking partnership with Motorola Inc., a new line of handsets, changes to its Boost Mobile wireless service and other moves. A company spokesman would not say whether the program is in fact a "strategic resolution" that was approved by the board. Information or commentary about executive compensation would come only through regulatory filings, he said, as Hesse's letter to Cowan was. For what it's worth, Sprint Nextel's next quarterly report is due Nov. 7.
Whatever the case, Cowan appears set to score on another deal.
In the same letter, Hesse wrote that the strategic planning exec would get a $500,000 bonus if Sprint Nextel closes its massive $14.5 billion wireless broadband venture with Clearwire Corp., Google Inc., Intel Corp., Comcast Corp., Time Warner Cable Inc. and Bright House Networks Inc.
The Federal Communications Commission is set to consider Sprint-Clearwire pact during an election day meeting. The government is expected to sign off, removing a condition for closing. -
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