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Dark Times at Sprint Nextel?

Sprint Corp. (NYSE: S) looks increasingly like a misguided retailer that loses money on every transaction, but hopes to make it up on volume. The carrier has been losing customers every quarter, but recently introduced $100 per month bundled pricing for unlimited voice and data. Essentially capping revenue per customer like that doesn't make business sense when the customer base shrinks by a million customers a quarter.

I don't like picking on Sprint Nextel. I've been a longtime fan of its vision, and I'd like it to succeed. But its three major competitors – AT&T Inc. (NYSE: T), T-Mobile US Inc. , and Verizon Wireless – are all gaining customers, and Wall Street analysts are making bearish calls. Maybe I'm piling on; kicking it when it's down. But what confidence can I derive when it introduces a flat rate per customer that can only increase revenues when there's a growing customer base?

Read the rest at Light Reading.

— H. Paris Burstyn, Senior Analyst, Heavy Reading

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