Ina Fried

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Confirmed: Sprint Combining Business and Consumer Units, Ousting Four Top Execs

Saying that it needs to cut costs where it can, Sprint is merging its business and consumer units.

The move also will result in four top executives leaving the company, according to a memo from CEO Dan Hesse.

“As the wireless market has evolved, the lines between consumers and businesses have blurred,” Hesse said in the memo, which was first reported by Reuters. “Because of the enormous investments we’re making this year in Network Vision and in the iPhone, we need to consistently be looking for ways to be more efficient.”

Leaving the company are divisional presidents Bob Johnson and Danny Bowman and senior VPs Chris Rogers and John Carney.

All sales will now report to Paget Alves, with all consumer and business marketing being headed by Bill Malloy. Sprint’s machine-to-machine business will switch over to wholesale unit president Matt Carter.

A Sprint representative confirmed the moves and the authenticity of the memo.

Although Sprint got its way in seeing AT&T’s efforts to buy T-Mobile derailed, the company faces plenty of hurdles of its own, and remains a distant No. 3 to AT&T and Verizon Wireless.

The company had placed a big bet on being first to market with a high-speed 4G network, choosing WiMax. However, with LTE offering higher speeds and more ubiquitous adoption, the carrier is now shifting gears and aiming to build an LTE network, as well.

Sprint said this week that it will launch by midyear in several southern U.S. cities, but it now trails both AT&T and Verizon in the LTE race.

Also, as paidContent’s Tom Krazit notes, the Sprint Web site could do with a bit of business/consumer consolidation, too. The screenshot below is what folks see when going to Sprint.com:

Updated at 1:40 pm PT to include confirmation of the moves by a Sprint representative.


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