Sprint Nextel Continues to Struggle

Sprint Nextel looks to score big with the launching of the "Simply Everything" unlimited wireless plan but there is no denying that the company is still struggling. The company has taken major losses in profit and stock value. Predictions indicate that the wireless network will also suffer from major customer defections.

Let us begin with the losses recently reported by Sprint Nextel. The wireless network reported that for its fourth fiscal quarter it suffered losses worth $29.5 billion. This bleeding is the effect of continued decrease in the number of Sprint subscribers and the write-down from the wireless network's 2005 acquisition of Nextel. As a result, the company will not pay dividend in the foreseeable future.

The problems will only worsen as the wireless network estimates that they will lose more than a million customers who pay monthly bills in the first quarter. One of the causes of these defections is the fact that Sprint was unable to lay out a plan to improve conditions. the wireless network also ranks among the lowest inters of customer satisfaction and service quality.

The stocks of the carrier also suffered due to the report of the the loss in profit and the continued decrease in subscribers. The wireless networks stock was down 10.4% to $8.02 when they reported the losses. A write down of the value of Nextel Communications Inc. is also consider as a major factor in the profit loss and the devaluation of the company's stocks.

Sprint has continued to struggle after it merged with Nextel. The acquisition was suppose to increase the average revenue per user (ARPU) of its subscribers but that plan has not been accomplished. The main reason for this is the fierce competition offered by rival wireless networks. The mobile phone industry remains as a very lucrative business and so far Sprint has suffered from the intense competition.

Fortunately, all is not lost for Sprint Nextel. Although the company is struggling, efforts are being done to turn things around. These efforts is headed by the new CEO and the new " Simply Everything" wireless plan will help stem the flow of customer defections. The layoff of about 4,000 employees and closing of more than a hundred 125 retail outlets will also help the company to recover.