Sprint Nextel Corporation has announced a stunning loss of $29.45 billion, or $ 10.36 a share, compared with net income $261 million, or 9 cents a share, a year earlier. The sum includes a $29.7 billion goodwill write-down, the remaining value of its $35 billion 2005 purchase of Nextel Communications Inc.

Sprint Nextel, the nation's third largest wireless carrier, has more than 50 million customers. By comparison, AT&T and Verizon have widened their lead and now serve more than 60 million customers each.

"The fourth-quarter financial results reflect the challenges facing our wireless business," Sprint Nextel Chief Executive Dan Hesse said in a company statement.

The wireless heavyweight also announced a $100 rate for "everything" and $90 plan for voice, more pricey than most people have expected. Analysts expected that Sprint would ask significantly less than its competitors for the unlimited voice plan to regain market share, which the company apparently found not feasible. Similar plans from its competitors cost around $100.

"Given current deteriorating business conditions, which are more difficult than what I had expected to encounter, these changes will take time to produce improved operating performance, and our near-term subscriber and financial results will continue to be pressured," Hesse said.

He also said that the company canceled its dividend for the foreseeable future, among other measures, to regain financial stability. Hesse would allegedly unveil a new strategy in the near future, as the company was in worse shape than he previously thought.

The wireless company borrowed some $2.5 billion under a revolving credit line, in part to mitigate financing risk related to $1.25 billion in bonds that mature in November, $400 million in commercial paper and $600 million of bonds that mature in May 2009. Sprint still has about $500 million left.