Sprint Loses $29.5 Billion Dollars In A Single Quarter

Sprint has announced a fourth quarter loss of $29.5 billion, says the Chicago Tribune. Most of the loss is due to a one-time $29.5 billion writedown of its purchase of Nextel. The wireless carrier says it expects 1.2 million additional customers to leave this quarter, citing dropped calls and poor customer service as their reason for seeking less frustrating pastures.

Chief Executive Dan Hesse, who took over in December, said business is worse than he expected and is deteriorating.

“We need an articulated strategy of how he’s going to turn around the business,” said Michael Nelson, an analyst at Stanford Group Co. in New York. “I don’t expect it to be a pretty picture.”

Hesse knows he is facing a tough road.

“We will have a difficult 2008 as we turn this ship around,” Hesse said on a conference call with analysts. “This turnaround will not happen for many quarters.”

Sprint is trying to stop the hemorrhaging by offering an unlimited plan for $99.99 a month.

Sprint records $29.5 billion net loss [Chicago Tribune]