Sprint FY 1Q15 Earnings Call Notes

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Masayoshi Son on the call.

“Hi, this is Masayoshi Son. I’m extremely excited about the turnaround of Sprint.” ”

I had a plan to consolidate but that’s no longer the case.

“So as you might have imagined, when I entered into the U.S. market, I had a plan to have a consolidation in the industry but that’s no longer the case. So I lost the confidence for some time.

Now we’re focused on building a next gen network.

However, the last few months I am totally refocused to help Marcelo and the team have the historical turnaround of the company, and I’ve been working – very, very involved especially on the networks side. I have been involved with my engineers almost every night from 10:00 p.m. up to 2:00 a.m., almost every night and designing the next-generation network and looking at the opportunities to improve the OpEx.

I don’t want to sell the company.

So as a result, Marcelo and I and the total team of Sprint and SoftBank together and now we have a plan to have a big turnaround. I am extremely excited about that and I have a confidence for that especially with a new leader, Marcelo, which I have full confidence. So I am excited. I don’t want to sell the company. I believe Sprint is going to be one of the very, very good companies of which I will be very proud. So I’d like to answer any questions together with Marcelo.”

Going to deploy small cells

“leveraging on the experience of SoftBank in Japan, we plan to deploy tens of thousands of small cells and that obviously is going to further improve coverage and capacity. So we believe that with that and what we’ve shown is that our network is going to be able to have parity or superiority in the next two years. ”

This is not a good quality network

“this is Masa. As you may know, Japan has the best network in the world. To me, every time I come to the States, I say this network in this country is not something that you should be proud of. It is actually very bad. It’s not just Sprint, even Verizon, AT&T and T-Mo, all network is pretty bad. I’m going to say U.S. invented Internet, U.S. invented telephony but network is not something that you should be proud of.”

We know how to create a number one network with less capex

“within Japan, SoftBank spent almost half in CapEx compared to our competitor, but the result of our network coverage, the speed is number one. So what we’re good at is spending less in CapEx and create a number one network.”

You have to use your brain instead of money and muscle

“it’s easy to spend money and get the result, but if you have less money and then still want to achieve the number one network, you have to use brain instead of money and muscle.”

All of the networks in the US are badly congested. You can’t offer a video bundle until you fix that

“I say that in the U.S. all of the four mobile carrier network is congested, all of them, very badly. It’s so bad that you don’t want to even talk about the detail. So in that situation, how would the customer benefit for video bundle? Video bundle, especially through the mobile network is going to even choke the network. The network congestion becomes even worse. So I think before you talk about video bundles, especially through the mobile network, all of the four carriers in the States have to cure the issue of congestion. ”

Verizon’s OTT strategy is something that other operators have tried to do around the world with limited success

“Verizon is trying to do is something that mobile operators around the world have tried many times and that is to try to launch OTT or different services. And unfortunately, the track record of success of carriers around the world in terms of behaving or bringing this over-the-top solutions have not been stellar.”