Overland Park

Sprint Nextel Corp. watched another 1.3 million wireless subscribers head for its competitors during the third quarter, leading the company to post a loss that sent its stock skidding Friday.

Dan Hesse, the Overland Park, Kan.-based company's chief executive, told analysts that Sprint Nextel plans to work harder to attract new customers during the upcoming holiday season but acknowledged "we have yet to turn the corner."

"We made good progress on our operational priorities in the third quarter and resolved some key issues," he said. "Still, subscriber losses are too high."

Congress has asked Embarq Corp. about its work with a company that tracks online subscribers' Web traffic for advertising purposes, part of growing concern about Internet privacy.

Overland Park, Kan.-based Embarq is the nation's fourth-largest traditional telephone company with 1.34 million high-speed Internet subscribers in 14 states. It has been linked in the past with NebuAd Inc., a company that works with Internet service providers to tailor targeted ads based on what Web sites a particular subscriber visits.

Although a large Internet service provider has backed away from technology that tracks subscribers' Web use in order to deliver personalized advertising, two other broadband companies said Wednesday they are still considering whether to deploy it.

Phone companies Embarq Corp. and CenturyTel Inc. have both completed trials of the same tracking system, from online advertising company NebuAd Inc., and are now considering whether to proceed.

The Federal Communications Commission on Thursday agreed to give Sprint Nextel Corp. more time to swap some wireless spectrum frequencies with public safety agencies.

Sprint was facing a June 26 deadline to vacate channels that its Nextel wireless network uses in the 800 MHz band. The swap is designed to eliminate radio interference in that portion of the spectrum for the thousands of public safety agencies across the country that regularly use it.

Dan Hesse, chief executive officer at Sprint Nextel Corp. for less than five months, faced tough questions Tuesday about the company's continued trouble keeping wireless subscribers.

Overland Park, Kan.-based Sprint, the nation's third-largest wireless provider, lost about a million customers in 2007 and reported Monday that it lost 1.07 million more in the first quarter of 2008 alone.

Wireless carrier Sprint Nextel Corp. said Monday it had a larger first-quarter deficit as revenue fell, it lost more than a million subscribers and it absorbed charges for severance and other costs.

Overland Park, Kan.-based Sprint said its loss totaled $505 million, or 18 cents per share, in the three months ended March 31 compared with a loss of $211 million, or 7 per share, during the first quarter of last year.