Sprint Losses Continue Downward Spiral

Wednesday May 14th, 2008 --  Layoffs at Sprint Wireless were first announced in February along with the closing of many non-essential retail locations, a move that now seems more urgent after Sprint announced today a loss of over 1 million customers in the first quarter of 2008. 

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The 1 million customer churn rate is at least partly responsible for the $505 million net loss for the first quarter of 2008, and has lead to speculation that CEO Dan Hesse will look to sell off the Nextel business unit, a move he states will cause "Significant Complexities"

The other option would be for Sprint Nextel to consider a complete unit sale of the entire company, a move that became a large possibility last week when Deutsche Telecom announced their interest in possibly buying Sprint Nextel, a move that would give the Telecom control of Sprint Nextel and T-Mobile USA, creating the 2nd largest carrier in the units states.

The sale of Nextel would constitute the loss of 15.7 million customers, while an outright sale would transfer 52.8 customers to the new company.