The shake-up at Sprint is beginning. Chief Operating Officer Len Lauer said last night he's leaving the ailing operator after working with the company for eight years.

Sprint has reported some punishing results since it acquired Nextel last year, and even though its executive team has some ambitious plans for the wireless operator's future, it's questionable whether they'll be around to execute those plans. Sprint earlier this month became the largest operator in the world to commit to WiMAX, announcing a plan to invest billions of dollars into a nationwide rollout of the new mobile technology. A few weeks earlier it committed to upgrading its already fast 3G networks to an even faster technology, CDMA 1X EV-DO. It's made plenty of interesting strategic moves also: a tie-up with the major cable operators to provide joint quadruple-play services, heavy investment in alternate brands like Virgin Mobile and Nextel's Boost to broaden its customer base, and embracing the MVNO and resale model to boost wholesale subscribership.

But none of these plans seem to be working, or at least their benefits are lost in the massive drag that the Nextel acquisition is causing. Its Q2 earnings were one of its worst yet, with falling profits and revenues and measly subscriber growth. Worst of all, its touted big-picture products seemed to add to the decline, rather than offsetting it. Its wholesale subscribers, which were increasing rapidly in previous quarters, actually declined in the last quarter. Nothing has come yet of the cable alliance, except for a partnership to bid in the current AWS auction. And even its massive investment in 3G infrastructure isn't producing the data revenue gains Sprint would like as its Nextel subsidiary continues to drag down Sprint's once industry-leading data ARPU. The only business units that seem to be doing well are its long-distance division and Boost.

Sprint seems to have positioned WiMAX as the good news that will pull the company up from the mire, but the first WiMAX commercial service won't be available for well over a year. It's doubtful Wall Street will give the company that much of a grace period. In fact, if CEO Gary Forsee and other top brass follow Lauer's departure, there's a chance that the WiMAX project might be scuttled entirely. It's a low risk. After all, Sprint does need to put something in that spectrum or lose its 2.5 GHz licenses. But it's hard to imagine a new management team getting excited about a capital-draining untried technology that was brainchild of their predecessors.

E-mail me at KFitchard@telephonyonline.com.

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