Despite producing some $60 million in revenue over the past fiscal year, Sprint has decided to exit the web hosting business.
Sprint said the web offerings adversely affected earnings by some 10 cents a share.

To shut down web hosting, Sprint said it would incur a 20 cent per share loss costing up to $475 million.

BellSouth also dropped web hosting as a business line in recent months, turning its business over to IBM.

Current Sprint customers will be transferred to preferred third-party hosting providers or Sprint strategic partners.

However, Sprint will continue to provide managed services and network transport.

As part of the shutdown, eight “E Solutions” centers, including one in Atlanta, will be shut down. Some 500 people will lose jobs as a result, the company said.