Embarq said today it will end its wireless reseller agreement with Sprint (NYSE: S) Nextel next year, becoming the second phone company following Qwest, to terminate its alliance in recent weeks. Embarq was essentially an MVNO that allowed it to sell an Embarq-branded service on Sprint’s network, but sales fell short of expectations, according to the WSJ. Embarq entered the resale agreement after it was spun off from Sprint in 2006. Gene Betts, Embarq’s CFO said at an analyst conference today Embarq ended last year with only about 112,000 wireless customers — far below its expectations of signing more than one million wireless subscribers. Embarq will support existing customers until sometime in 2009, when it may transition them to another carrier. Meanwhile, the company is exploring ways of tying its landline service to wireless offerings regardless of the carrier.
Qwest announced earlier this month that it was ditching its arrangement with Sprint in favor of a five-year agreement with Verizon Wireless (NYSE: VZ) starting this summer.
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