Sprint Nextel 1Q deficit widens, fewer subscribers

Sprint also said it may ask its lenders for waivers to its credit facilities but said it expected to remain in compliance with those covenants "over the next few financial quarters while exploring and pursuing these measures."

Last week, Sprint and Clearwire Corp. announced they had resurrected their plan to offer high-speed mobile Internet service with the help of some deep-pocketed supporters.

The two companies said they will combine their wireless broadband units to create a $14.55 billion communications company, to be called Clearwire, that will continue developing a mobile network based on WiMax technology.

WiMax is similar to the WiFi service found in coffee shops, airports and many homes but able to cover larger areas and supposedly download at speeds faster than the latest cellular networks for movies, games and other data services.

A similar partnership fell through last November. This time, however, the duo is getting help from a group of outside investors, including Intel Corp., Google Inc., Comcast Corp., Time Warner Cable Inc. and Bright House Networks, who will kick in $3.2 billion for the new company.

Other rumors swirling around the company is whether it is a possible acquisition target by Deutsche Telekom, the owner of wireless rival T-Mobile. Neither company has commented on the rumors.