Sprint's Big Pipe Dream

One outfit, wireless network design consultant LCC International (LCCI Quote), has landed a plum role in the expansion-planning effort, say people close to the companies. This 4G pioneering work with Sprint could mark a huge opportunity as more network operators look for help, say investors.

But Sprint's wireless pipe dream faces some immediate challenges from its deteriorating business.

Analysts and industry insiders say the Reston, Va., telco has taken its eye off some of the more pressing priorities. The company's integration of Nextel into the Sprint organization has been poor to date, say observers. Nextel's prized two-way walkie-talkie network was neglected and customers, including at least one federal agency, responded by dropping the service.

Field sales representatives for Verizon and AT&T say Sprint has become a much smaller presence in the business services market. In fact, the overall marketing effort seemed slightly scattershot, with different messages for different customers.

Sprint has only recently decided to unify its marketing theme, changing ad agencies last week.

The neglect was reflected in the numbers.

Sprint posted four consecutive quarters of financial disappointment. The company capped off that performance by getting handed a stunning decision by the federal contracting agency that it would be banned from seeking government business for 10 years.

Rivals Verizon, AT&T and Qwest (Q Quote) made the cut and are now approved to seek an estimated $20 billion worth of telecom work with the feds.

"We are very committed to the Federal business and will continue to serve our current customers through a number of existing contractual platforms," writes a Sprint rep. "In addition, we also have the FTS2001 Bridge contract which allows us to potentially serve our existing customers for up to the next 40 months. We are continuing to focus on our core business and delivering the service/products our customers need and have come to rely on us."