Sprint Looks To Slice

[Sparky7]

How do you suppose Spint can continue to sponsor the Big Show in NASCAR under these circumstances? I think it's kind of amusing that Spint was so hellbent on slapping down Cingular/AT&T when their own viability is so tenuous. Somewhere RC is laughing his butt off.

http://www.thestreet.com/newsanalysi.../10398630.html

Sprint

(S) is swinging the ax as wireless subscribers flee in large numbers.

The No. 3 mobile phone service is preparing to cut "thousands" of employees, according to a report in The Wall Street Journal that cites people familiar with the plan.

The news comes just three days after TheStreet.com first reported that Sprint lost more than 500,000 wireless customers in the fourth quarter.

A Sprint representative declined to comment.

The Reston, Va., telco has confounded investors, who have watched the company spiral downward the past two years amid a robust wireless market.

Sprint is planning to release earnings sometime next month, and the disappointing results will be an especially hard test of investor loyalty. New CEO Dan Hesse is likely to suspend any financial guidance or investor updates until April as he completes a sweeping strategic review, say analysts and Sprint watchers.

After the merger with Nextel, Sprint relocated its headquarters to Virginia, effectively giving the company an executive office in the East and an operations center in Kansas.

Some observers say it's only a matter of time before Hesse consolidates the offices. But one source close to the company says Sprint fears losing key top managers in Reston if the headquarters are relocated.

Hesse must also make big decisions regarding Nextel's iDEN network, possibly migrating customers to CDMA or potentially selling the system to public safety agencies. Sprint has also put a hold on all new WiMAX developments, while Hesse evaluates the business opportunity in this so-called 4G network technology.

Meanwhile, rivals AT&T (T) and Verizon Wireless -- co-owned by Verizon (VZ) and Vodafone (VOD) -- had a strong fourth quarter. Analysts say AT&T added more than 2.4 million new users thanks to the popularity of Apple's (AAPL) iPhone and a strong push in prepaid service. Verizon is expected to post a solid 1.9 million fourth-quarter subscriber gain.

Sprint shares fell 4 cents to $12.32 in after-hours trading Monday.

[muggle not]

Looks like some difficult times in Nascar:

Sprint / Nextel struggling.

Lack of team sponsors due to U.S. economy.

Questionable changes made by Brian France since he took over the helm.

It is a shame because without a doubt Nascar gives us the best racing of any Series from the U.S.

[Sparky7]

It sure isn't looking pretty and it is the best racing out there in my opinion. I'll be surprised if the CTS can muster full fields this year.

[muggle not]

http://www.marketwatch.com/news/stor...45FCBB5D25C%7D

Sprint Nextel to cut 4,000 jobs
Wireless carrier loses 683,000 postpaid customers

WASHINGTON (MarketWatch) -- Sprint Nextel Corp. said Friday it would eliminate 4,000 jobs and close 8% of company-owned retail stores amid the loss of more key customers to rivals.
The store closings and the 6.7% reduction in Sprint's workforce represent the first major moves by new Chief Executive Dan Hesse, who was hired last month.
The company has been hurt by a reliance on credit-risky subscribers, mediocre customer service and a less attractive roster of handsets compared to competitors such as AT&T Inc., the exclusive provider of the iPhone.
In the fourth quarter, Sprint lost 109,000 subscribers overall and 683,000 postpaid customers -- larger than Wall Street analysts expected. Postpaid customer, who sign up for annual plans and pay at the end of each month, are considered the most valuable in the industry.
The steep loss in postpaid subscribers unsettled investors. Shares of Sprint (S:
Sprint Nextel Corporation
sank more than 25% to $8.52 in recent trades, the stock's lowest level since autumn 2002.

[Sparky7]

I wonder if NASCAR will be able to dribble their checks.

[kingfloopy]

NASCAR struggled to find full fields the last time the U.S. economy took a downturn in the 2001 to 2003 timeframe. And since the current economic crisis looks worse I imagine the same thing will happen again. I also would not be surprised if Sprint was out as a sponsor in a season or two. With the overturn in series sponsorship in the other two series it seems to me that NASCAR is asking too much for too little return to the companies.

J.D.