Sprint's Big Pipe Dream

Last week, Sprint got a debriefing from the General Services Administration on why it failed and where it fell down.

But industry watchers say the mismanagement and pileup of financial woes may derail the WiMax effort.

Sprint's chief executive and WiMax architect, Gary Forsee, may not last long if investors start to wonder who's to blame for the 27% stock slide they've seen over the past year. AT&T is up 45% and Verizon has gained 10% during the same period.

Private equity firms have shown an interest in Sprint as the blunders intensify. If the company gets bought out, it's probably fair to assume that the business model and management will have to change to please a new master.

An expensive technology expansion like WiMax may not fit the needs of a private equity shop looking to maximize cash flow.

For now, however, Sprint's hoped-for revival rides on the success of WiMax.

"I'd say if you asked anyone at the executive level, they'd say WiMax is one of our most important initiatives," says the Sprint strategist.

If you are Sprint, it's probably somewhat comforting to have something hopeful to focus on.