Sprint Nextel (NYSE:S) is being pressured to field shareholder questions about the future strategic and operational direction of the telecom provider following Ralph Whitman's growing impatience with CEO Gary Forsee. Many analysts are now looking at a wide range of strategic options that the company could consider to unlock value and narrow its focus.

Sprint Nextel continues to work on integrating issues from its $35 billion 2005 merger while focusing on building a new generation broadband network that has proven to be a significant cash drain to date. The so-called WiMax project is not expected to contribute to the company's profitability for several years and has many investors questioning management's moves.

Sprint does have some strategic options that it could consider, according to those familiar with the situation. The company could put its long-distance division up for sale, which serves large corporate and government clients. However, the company would then have to factor in the fact that they use some of the fiber networks to carry wireless traffic. This sale could generate $4.8 billion in after-tax proceeds.

Other suggest that the company should abandon its new venture and sell the 2.5 Ghz spectrum license that Sprint has reserved for WiMax. Such a deal could net the company $3.4 billion after-tax while eliminating further cash burn. However, the company argued that this project is critical to the success of the company in the future and will begin to gain momentum in 2009.

In the end, Sprint investors may have to remain patient for now as the company works to improve its WiMax project and streamline other businesses. Whether or not the company will shop any of its divisions remains to be seen; however, it is definitely a situation worth watching!

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