Sprint Nextel Corp. posted a dramatic $29.5 billion fourth-quarter loss even as it unveiled an unlimited wireless plan in a bid to stem the flood of subscriber defections.

The Overland Park, Kan., company also borrowed $2.5 billion under its revolving credit facility to increase financial flexibility, suspended dividend payments and admitted that business conditions are deteriorating, more difficult than expected and unlikely to improve soon.

Chief Executive Dan Hesse told analysts in a Thursday conference call. "We are taking the customer defection issue seriously." The company expects the turnover rate to rise 20 to 30 basis points in the first quarter as it loses another 1.2 million post-paid subscribers, and the rate isn't expected to improve in the second quarter, said acting Chief Financial Officer William Arendt. The loss of 1.2 million in the first quarter is roughly equal to the total loss Sprint had in all of 2007.

The news sent Sprint shares down as much as 13% to $7.75, their lowest levels since October 2002. The stock recently traded at $8.30, down 7.3% from its close Wednesday of $8.95.

said by TKJunkMail :

»money.cnn.com/news/newsfeeds/art···UNE5.htm
Unlimited calling plans won't save Sprint. Especially since AT&T and Verizon matched them. Sprint may have to merge with someone to stay alive.