In another disappointing sign o’ the times, Sprint announced today that it would post a $29.5 billion loss – that’s right - $29.5 billion - most of it due to a write-down of its 2005 purchase of Nextel.

The telecom kingpin is bleeding customers, left and right, and investors are worried how low Sprint may actually go.

Speaking to analysts on a teleconference call earlier today, Chief Executive Officer Dan Hesse said the quarter was more difficult than he had expected and it could be some time before proposed operational changes have any effect.

His candidness was greeted with alarm in Thursday trading. Shares of the telecom company dropped 10.1%, or 90 cents, to $8.05, in afternoon trading. Since, February, 2007, the company's shares have fallen 56.9%.

Hesse also predicted the company would lose 1.2 million valuable customers who sign an annual contracts during the first quarter and would see additional losses in the second quarter.

According to J.D. Power's customer and service ratings service, Sprint is at the bottom of the list when it comes to quality customer service. Says J.D. Power: “America's No. 3 telecom company has left numerous users frustrated by its customer service and by what some see as misleading agreements.”

One move Hesse did announce today was a discounted pricing plan that would provide unlimited voice and data service usage for $99.99 per month. Unlimited voice only would cost $89.99 per month, undercutting $99.99 unlimited calling plans rolled out in recent weeks by Verizon and AT&T.

"Our business is not performing well right now," Hesse said. "We are working aggressively to turn this around but our financial performance will not improve overnight."
Maybe not the next few nights, either. Sprint has reported a net loss of 108,000 subscribers for the quarter as an increase in customers through its Boost prepaid brand and wholesale channels partially offset the loss of 683,000 postpaid subscribers, who typically spend more on data services like texting and Web surfing.

Hesse told analysts that the company would continue focusing on improving customer service and making its price plans and services easier for customers to understand.
"When I look at the company I see great assets. ... I also see a once-strong brand which lacks relevance and a clear message," he said. "This will change."

Wall Street wasn’t exactly impressed. "We view today's Sprint action as a 'Hail Mary,' leaving price as the only warhead left in the arsenal," Bear Stearns analyst Mike McCormack said in a research note. "While we will be watching for share shift, we do not think pricing alone will drive subscribers to Sprint."

That tells me that Sprint’s stock hasn’t hit bottom yet. Don’t walk - but run away from this former high flier.