BGR: The Three Biggest Letters In Tech » Sprint

Sprint’s iDEN push-to-talk network to go offline next summer

Dan Graziano — Tue, 29 May 2012 23:08:04 +0000

Sprint on Tuesday announced that it plans to cease service on its iDEN Nextel network as early as June 30th, 2013. The nation’s third largest wireless provider is looking to migrate business and government customers from the old push-to-talk technology onto Sprint Direct Connect, which operates on the carrier’s 3G CDMA network and offers improved in-building coverage, and increased voice and data capacity. Sprint will begin sending written notices to iDEN customers beginning June 1st, 2012. The dated Nextel spectrum will be reassigned for the carrier’s upcoming LTE network. Sprint’s press release follows below.

Sprint to cease service on its iDEN network as early as June 30, 2013; Company continues to facilitate migration of iDEN customers to Sprint Direct Connect Service

OVERLAND PARK, Kan. (BUSINESS WIRE), May 29, 2012 – Sprint today announced plans to transition business and government customers from its iDEN (2G) Nextel National Network onto Sprint® Direct Connect® — its next-generation, push to talk service, which operates on Sprint’s 3G CDMA network. Sprint also announced that it plans to cease service on the iDEN Nextel National Network as early as June 30, 2013 as part of its Network Vision plan — a series of network updates designed to offer next generation network capabilities to customers.

Sprint will send written notices to business and government customers beginning June 1, 2012 regarding the iDEN Nextel National Network shutdown. The company will continue to notify customers of favorable offers designed to facilitate a smooth migration to Sprint® Direct Connect®. Additional notices are planned for distribution to the iDEN base multiple times over the next year as the shutdown of the iDEN Nextel National Network becomes more imminent.

Sprint launched Sprint Direct Connect, the industry’s newest PTT gold standard, in October of last year. The service provides broadband data capabilities, familiar push-to-talk features, and rugged and reliable handset options. Sprint Direct Connect coverage is expected to broaden throughout 2012.

Over the past eight months, Sprint has announced four rugged Sprint Direct Connect handsets catering to push-to-talk users including the Kyocera DuraMax, Kyocera DuraCore, Kyocera DuraPlus and the Motorola Admiral™. Last month, Sprint made International Direct Connect? available on its Sprint Direct Connect devices, expanding the reach of push to talk capabilities to and from Mexico, Brazil, Argentina, Peru and Chile.

Network Vision represents a nationwide update of the Sprint network using the newest, most-advanced equipment in the industry. Sprint plans to consolidate multiple network technologies into one seamless network with the goal of increasing efficiency and enhancing network coverage, call quality and data speeds for customers.

Network Vision is expected to add net economic value for Sprint from reduced roaming costs, cell site reduction, backhaul efficiencies, more efficient use of capital, and energy costs savings. Sprint anticipates that iDEN Nextel National Network push to talk functionality will become inoperable as early as June 30, 2013; however, Sprint CDMA voice and data services on PowerSource devices (dual mode iDEN and CDMA devices) will still be available. The company has already discontinued selling iDEN devices in certain channels. It will discontinue selling iDEN devices in all channels and all brands carrying iDEN Nextel products over the next several months. Sprint will continue to support customers with iDEN devices during the network transition and will work with those customers to ease their transition to Sprint’s CDMA service.

Sprint won’t turn a profit on the iPhone until 2015

Dan Graziano — Wed, 16 May 2012 21:45:12 +0000

Sprint’s costly $15.5 billion gamble on Apple’s iPhone won’t pay off until 2015, according to CEO Dan Hesse. At that time, however, the iPhone will be “quite profitable,” and the company is “very happy” with the deal despite conflicting reports, AllThingsD said. Hesse sees the iPhone as a long-term investment that will slow subscriber defections and attract new customers. “We believe in the long term,” the CEO said. “And over time we will make more money on iPhone customers than we will on other customers.” Sprint sold 1.5 million iPhones in the first quarter of 2012, and while the number doesn’t approach AT&T or Verizon’s sales, 44% of Sprint’s iPhone sales were made to new customers.

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HTC EVO 4G LTE review

Zach Epstein — Wed, 16 May 2012 16:45:45 +0000

Successfully launching an iconic smartphone is a daunting task, and following up a blockbuster flagship phone launch is even more difficult. Apple and Samsung might make it look easy, but companies like Motorola, Nokia and RIM have shown us that the success of one phone is anything but a guarantee that sequels will be met with the same fanfare. Perhaps no recent smartphone launch better embodies that notion than the HTC EVO 4G, a smartphone that gave Sprint a much-needed smash hit when it launched in 2010, and its successor the EVO 3D, which is now all but forgotten less than a year after its debut. Now, Sprint and HTC are back again with the HTC EVO 4G LTE, a smartphone that is more than worthy of its “flagship” designation. Impressive though it may be on paper, can Sprint score an EVO 4G-sized hit with this upcoming superphone or is it destined to meet the same fate as the EVO 3D? My full review follows below.

The Inside

HTC’s business exploded beginning in early 2011, and the company went on a run that saw it post record revenue for six consecutive months. The vendor’s growth came to a screeching halt in the fourth quarter, however, thanks to the launch of Apple’s iPhone 4S and increased competition from Samsung. HTC is well aware that it fell behind, and it is also well aware that a window may have opened; the company’s direct response to a BGR article on the matter suggests HTC is ready for battle, and on paper, the HTC EVO 4G LTE — Sprint’s branded and redesigned version of the HTC One X — is a very powerful weapon.

As is the case with AT&T’s One X, the HTC EVO 4G LTE loses NVIDIA’s quad-core Tegra 3 chipset in favor of the LTE-compatible Qualcomm Snapdragon S4, which includes a 1.5GHz dual-core Krait CPU and an Adreno225 GPU. Performance and responsiveness may or may not take a hit as a result of the change, but I did experience the same performance hiccups covered in my review of the HTC One S.

HTC’s Sense 4 UI and service layer sits atop Android 4.0.3 Ice Cream Sandwich, and it is most definitely a step in the right direction compared to previous versions of Sense. As discussed in BGR’s review of HTC’s One S for T-Mobile, Sense 4 goes back to the basics for HTC. It focuses more on adding value for the end user and less on differentiation for the sake of differentiation.

Beyond the processor and operating system, this smartphone is packed to the brim with cutting-edge technology. In terms of connectivity it includes CDMA, EV-DO, LTE, Wi-Fi 802.11a/b/g/n with DLNA and mobile hotspot support, Bluetooth 3.0, USB 2.0 and near-field communication (NFC) support. It also features 16GB of internal storage, a microSD slot for up to 32GB of additional memory, 1GB of RAM, an accelerometer, a gyroscope, a proximity sensor, a compass and plenty more.

Though the EVO 4G LTE is only 8.9 millimeters thick, HTC managed to squeeze in a 2,000 mAh battery. While I couldn’t test the device’s battery performance on Sprint’s 4G LTE network since such a thing does not exist, battery life on Wi-Fi and 2G/3G was more than ample. I was able to easily make it through a full day of moderate usage on a single charge, and after charging the phone early in the morning, I often didn’t have to plug the EVO back in until mid-way through the following day.

Typical usage during my testing included streaming music via Pandora, regularly interacting with Twitter, monitoring Reddit with Baconreader, staying on top of the news with gReader and News360, capturing a bunch of photos and some video, browsing the Web in Chrome and sending and receiving more email than any man should ever have to deal with.

The Outside

As is the case with most modern flagship phones from HTC, the EVO 4G LTE’s build is second to none. Barring one area that I will soon cover at length, HTC used top-notch materials on the EVO and the result is a solid smartphone that feels like a premium product should.

The display and capacitive navigation buttons on the HTC EVO 4G LTE are covered with Gorilla Glass by Corning, and a front-facing 1.3-megapixel camera sits above the top of the screen alongside the ear speaker. Calls on the EVO were loud and clear, and people I spoke to during my tests had no complaints whatsoever regarding call quality.

The display on this smartphone is very impressive. HTC opted for a Super LCD2 panel that squeezes high-definition 720 x 1,280-pixel resolution into display that measures 4.7-inches diagonally, and the result is a pixel density of 312 ppi. It’s a beautiful display.

While the clarity isn’t on par with the likes of Apple’s Retina display on the iPhone, it is certainly among the most impressive I’ve seen on a smartphone. Images and high-definition video look fantastic on the EVO 4G LTE’s screen, and UI elements are impressive as well. Colors aren’t quite as deep as they are on the Super AMOLED panel HTC used in the One S, but the higher resolution is well worth the trade off.

The right side of the phone contains a volume rocker and a dedicated two-stage camera shutter button — something that is noticeably absent from AT&T’s version of the One X — and the left edge of the phone is home only to a microUSB port. The top of the new EVO includes a power button, a secondary microphone for noise cancellation and a standard audio jack, while the bottom contains the primary mic. On the back of the smartphone sits a loudspeaker, a camera, a single LED flash and a red aluminum kickstand.

The bulk of the case is made of anodized aluminum, but HTC added a twist to its design that we have not seen before on any smartphone. The unibody aluminum part of the case is anodized in black across the entirety of its exterior surface, but then the anodized layer is ground away in a thin strip around the outer edge of the phone. The result is a sleek black case with red accents on the back, and then a brushed aluminum band around the outer edge of the phone.

It’s an interesting idea that might have made for a fantastic looking smartphone had HTC not used a glossy black plastic piece to cover the top half of the back of the EVO 4G LTE.

The Upside

I had a great deal of praise for HTC’s fourth major iteration of Sense when I reviewed the One S for T-Mobile recently, and Sprint’s EVO 4G LTE keeps the experience surprisingly pure.

“Sprint Zone” is the only carrier-branded application you’ll find on this smartphone out of the box, and it can hardly be categorized as annoying, intrusive or “bloatware.” Quite to the contrary, the app offers a single hub through which users can access account management features, app recommendations, a Sprint store locator and plenty more. In theory, this is great. In practice, the first time I tried to access anything through Sprint Zone (the Manage Your Account link), the app froze, couldn’t be killed using the EVO’s built-in task manager, and remained useless until I rebooted.

Beyond Sprint Zone and a visual voicemail app, the EVO 4G LTE experience is essentially exactly as HTC intended it. HTC dialed Sense 4 back a bit after taking user feedback to heart. The result is an attractive user interface that adds unique visual elements to Google’s Android 4 Ice Cream Sandwich UI, a suite of custom apps and a series of great features that enhance Android.

Samsung will push the envelope further with the launch of the Galaxy S III this summer, but HTC’s subtle functionality automation tweaks really add to the overall user experience where daily operation is concerned. The examples I mentioned in my One S review are still among my favorite: a simple setting has Sense greet users with the weather forecast each morning on the lock screen, another setting that automatically enables speakerphone mode when the phone is placed face-down on a table during a call and disables it when the phone is picked back up, and so on.

Moving past the software, the display on the EVO 4G LTE is another bright spot for this flagship phone.

In the television industry, display quality is everything. Vendors strive to outdo each other, and later this year we will see Samsung and LG push things to the next level when they release their debut 55-inch OLED TVs. Of course display quality will never be as important to smartphones as it is to TVs, for obvious reasons, but I believe we are quickly approaching a time when picture quality will be regularly named among users’ top priorities when choosing a device.

Samsung and Apple are clear leaders in this space right now. Apple’s Retina display on the iPhone 4S offers unrivaled clarity and Samsung’s Super AMOLED panels feature vivid colors that no other screen even approaches. Competitors are regularly narrowing the gap, however, and HTC can certainly be counted among the smartphone players that have recognized the importance of display quality on phones.

HTC’s One S utilized a Super AMOLED display panel on while the color reproduction is definitely more impressive, the Super LCD2 panel on the EVO is outstanding. Colors are often a bit more faint compared to AMOLED displays, but the clarity is where this screen shines. Compared to panels on HTC’s previous-generation smartphones, the EVO 4G LTE’s 720p high-definition display is clearer and brighter, and it really does have a significant impact on the user experience.

The camera and Beats Audio are two more big check marks in the plus column for this phone. The EVO 4G LTE sports an 8-megapixel camera with an f/2.0 wide-angle lens, and it is powered by a dedicated chip. It can capture 8-megapixel still images while recording 1080p HD video at 60 frames per second, and it can also shoot multiple full-resolution images per second in burst mode.

HTC’s camera on the new EVO can capture an 8-megapixel image and then return to a ready state in less than a second. The camera app in Sense also includes a number of Instagram-like photo filters that can be previewed in real-time, and having a dedicated two-stage shutter button makes the camera experience even better than it is on AT&T’s version of the One X.

Beats Audio works across all music apps on the EVO 4G LTE, as it does on all One-series phones, and it may very well offer the most impressive listening experience among all smartphones on the market. Beats tuning enhanced sound quality across every genre I played from my own catalog during testing, and it dramatically improves the listening experience with streaming apps like Pandora and Spotify as well.

The Downside

As impressed as I have been with the overall user experience offered by the HTC EVO 4G LTE, two gigantic road blocks lie between me and any possibility of an enthusiastic recommendation to run out and buy this phone when Sprint releases it in the near future.

First things first: it’s hideous.

I’ll elaborate — from the front, the new EVO is a great looking phone. It basically looks like any other full touchscreen handset. Tilting the device to its side exposes the brushed metal detailing that surrounds the outer edge of the phone, which is a unique feature that might help separate this phone from the pack. Flip the phone over to expose its back, however, and the fun is over.

HTC uses various plastics on the exterior casing that surrounds its many phone models. AT&T’s One X utilizes a sleek polycarbonate, and a number of other devices feature a soft-touch rubbery finish that feels great in the hand. I enjoy either of those options.

The EVO 4G LTE includes two plastics on the exterior of the device. Near the bottom of the back, there is a narrow hard plastic area near the speaker that nearly matches the aluminum finish above it. It breaks up the lines a bit, but it works. Above the aluminum region that sits near the middle of the back of the phone lies a red aluminum strip that houses the device’s kickstand. It’s not my cup of tea but there are definitely people who will enjoy this design element.

Then comes the cheap, glossy, flimsy, grease magnet of a plastic cover that houses the antennas and covers the microSD card slot.

During the week I have spent with the EVO 4G LTE, I asked more than a dozen friends, family and random people of varying ages for their initial impressions of this smartphone. Without exception, a complaint about the appearance of the handset was among the first few comments made, and it was often accompanied by an expression that might involuntarily cross one’s face after taking a big swig of milk that spoiled a month earlier.

I honestly have no idea who the look of the EVO 4G LTE might appeal to.

Why HTC chose this finish is beyond me, because the soft-touch finish found on other HTC models would have looked great here. I sincerely hope Sprint enlists the help of some top-notch protective case designers and offers a wide variety of high-quality third-party cases in its stores across the country, because something needs to be done to cover the back of this phone.

My other major qualm with this smartphone involves data speeds. Painfully slow data speeds.

T-Mobile and AT&T get jabbed constantly for marketing their HSPA+ networks as “4G.” In these cases, a matter of marketing is at the root of the debate and data speeds are typically more than adequate.

In the case of the EVO 4G LTE, Sprint is actually selling a device with “4G LTE” in its name and no 4G LTE network to support it. Sprint will roll out its LTE network over the next 18 months or so, but in the meantime, I spent a week testing a “4G LTE” phone with download speeds that averaged less than 1Mbps.

And as an aside, that name — ”HTC EVO 4G LTE” — is a horrible one. Enough with “4G” and “LTE” in phone names, carriers.

The Bottom Line

When it launches in the near future — the phone was supposed to be released on May 18th but a delay caused by a patent spat between HTC and Apple has left things up in the air — the HTC EVO 4G LTE will easily be one of the most impressive flagship smartphones Sprint has ever released. And one of the ugliest. And one of the slowest.

Beauty is in the eye of the beholder, but I truly have no idea who might look at the back of the HTC EVO 4G LTE and think to him or herself, “now this is one gorgeous smartphone.” In my unscientific study, I did not find a single person who liked the look of this phone. Instead, each and every person I handed the device to said it was “ugly,” “gross,” “nasty,” or “hideous” without any provocation.

Aesthetics are open to discussion but performance is not. This smartphone, which includes the term “4G LTE” in its name, is the slowest flagship device I have tested in recent memory. Compared to Verizon Wireless and AT&T’s LTE networks or even T-Mobile and AT&T’s HSPA networks, the data speeds I experienced while testing the EVO 4G LTE were simply pathetic.

Of course this phone is slow, you might say to yourself. Sprint hasn’t yet begun to roll out its next-generation 4G LTE network!

This is indeed the case, and while Sprint is under immense pressure to catch up in terms of network technology, launching the EVO 4G LTE without any 4G LTE network to support it — and having the audacity to include “4G LTE” in the device’s name — is putting the cart before the horse at best. At worst, it’s disingenuous.

The simple truth is that most customers who consider purchasing the “EVO 4G LTE” will do so with the belief that the phone will come alongside “4G LTE” service. For early adopters, this will not be the case. In fact, even months from now as 2012 rolls into 2013, a huge chunk of Sprint’s nationwide network will still not support LTE service.

At $199.99 on contract, the EVO 4G LTE offers a user experience that is second to none… as long as you cover it with a third-party case and stay within range of a Wi-Fi network. If you would prefer to roam about freely and maintain fast data speeds, or if you shudder at the thought of ruining the handset’s 8.9-millimeter thick profile with a bulky case, looking elsewhere might be the best option.

Sprint’s HTC EVO 4G LTE launches May 18th for $199.99

Zach Epstein — Wed, 09 May 2012 13:50:54 +0000

Sprint on Wednesday announced that its upcoming flagship Android smartphone, the HTC EVO 4G LTE, will become available on May 18th for $199.99 on contract. While Sprint doesn’t yet have a nationwide 4G LTE network to support the new One-series smartphone, subscribers will find plenty of cutting-edge technology to tide them over until Sprint begins flipping the switch on LTE. Key features of the new phone include a 4.7-inch 720p HD display, a dual-core 1.2GHz Snapdragon processor, an 8-megapixel camera with HTC’s Image Sense technology, and Sense 4 atop Android 4.0 Ice Cream Sandwich. BGR took a hands-on look at the EVO 4G LTE last month and called it an impressive smartphone with an aesthetic that may be a deal-breaker for some. Sprint’s full press release follows below.

Sprint Debuts HTC EVO 4G LTE on May 18 for $199.99

HTC EVO 4G LTE is now available for pre-order at www.sprint.com/evo4glte

OVERLAND PARK, Kan. (BUSINESS WIRE), May 09, 2012 – Sprint (NYSE: S), the only national wireless carrier offering truly unlimited data for all phones while on the Sprint network1, and HTC, a global designer of smartphones, announce the Friday, May 18, availability of the next evolution of the award-winning HTC EVO™ family, HTC EVO™ 4G LTE.

It will cost $199.99 with a new line of service or eligible upgrade and two-year service agreement (excludes taxes). Pre-order began May 7 at www.sprint.com/evo4glte.

“HTC EVO 4G LTE sets the benchmark for Android devices this year with its incredible 4.7-inch screen, advanced camera features and future HD voice capabilities when combined with the speed of Sprint’s upcoming 4G LTE network,” said Fared Adib, vice president-Product Development, Sprint. “Its cutting-edge technology pairs perfectly with Sprint’s unlimited data plans to let our customers enjoy their wireless experience without worrying about overage charges or throttling.”

HTC EVO 4G LTE is built on Android™ 4.0, Ice Cream Sandwich, integrated with HTC Sense™ 4. It focuses on exceptional improvements in camera technology, audio and voice quality on both the network and device.

HTC ImageSense™ brings improvements to every part of the amazing camera experience featuring a superfast autofocus to enable continuous shooting, the ability to capture still images while taking video, and increasing the quality of photos taken in adverse conditions such as low light, no light or with bright backlighting.

HTC EVO 4G LTE is Sprint’s first device with HTC’s Authentic Sound experience integrating Beats Audio™. The technology enables customers to hear music the way the artist intended with unique audio tuning that delivers thundering bass, soaring midrange and crisp highs. Beats Audio is enabled across the entire phone experience, including playing music stored on the device, streaming from a favorite service, watching a movie or YouTube™ video, or playing the latest hot game.

HTC EVO 4G LTE boasts brilliant features, including a vibrant 4.7-inch HD display, future HD voice capabilities2, 2000mAh embedded battery and 8-megapixel rear-facing and 1.3-megapixel front-facing cameras. It is powered by the Snapdragon™ S4 processor by Qualcomm, delivering best-in-class performance and a power efficient platform for exceptionally long battery life. HTC EVO 4G LTE brings back the fan-favorite kickstand built into the smartphone’s refined, slim design.

“With the HTC EVO 4G LTE, we’re launching a true successor the original EVO, bringing a focus on innovation, design and industry-leading consumer experiences,” said Martin Fichter, vice president, product management, HTC America. “The millions of current and new EVO fans will appreciate our amazing camera that’s superfast, easy-to-use and takes video and photos at the same time as well as our enhanced audio experience that you need to hear to believe.”

Respected device critics are buzzing with excitement for HTC EVO 4G LTE. Here are a few of the praises that poured in when it was announced earlier this month:

“The HTC EVO 4G LTE is a good looking phone and will make fans of Sprint’s EVO line very, very happy. It packs every spec anyone could possibly ask for: dual-core Snapdragon S4 processor, 8-megapixel camera, 4.7-inch HD display, and the latest Android 4.0 operating system, enhanced by Sense 4.0. Oh, let’s not forget the kickstand!” – Eric Zeman, Phonescoop

“The original superphone has been reborn.” – Mark Spoonauer, Laptop Magazine

“As for first impressions, I was shocked when I finally got to hold an EVO 4G LTE. In the presentation videos the phone looked thick and bulky. In person, it’s anything but. It is thin, deceptively lightweight and absolutely beautiful.” – Gary Krakow, TheStreet.com

“Yesterday Sprint and HTC made a joint announcement, unveiling the brand new EVO 4G LTE. It’s an impressive device. Thin, light, fast, powerful, the whole package.” – Steve Kovach, Business Insider

HTC EVO 4G LTE customers can enjoy an unlimited data experience with Sprint Everything Data plans. Sprint’s Everything Data plan with Any Mobile, AnytimeSM includes unlimited Web, texting and calling to and from any mobile in America while on the Sprint Network, starting at just $79.99 per month for smartphones – a savings of $40 per month versus Verizon’s comparable plan with unlimited talk, text and 2GB Web, or $10 per month savings versus Verizon’s 450-minute plan with unlimited text and 2GB Web (excludes taxes and surcharges).

HTC EVO 4G LTE is one of the first devices available with Sprint Professional Grade, a new designation for select smartphones that deliver enhanced security, device management and Exchange Active Sync capabilities to business users. Click here to learn more about Sprint Professional Grade designation.

As part of the HTC EVO 4G LTE launch, Sprint will be giving customers a chance to share their LOVE on Facebook. To learn how you could enter for the chance to win UNLIMITED LOVE, make sure to visit Sprint’s Facebook page on May 18 for details.

Sprint recently announced Atlanta, Baltimore, Dallas, Houston, Kansas City and San Antonio are expected to have 4G LTE and enhanced 3G service in mid-year. The anticipated launch of these large metropolitan areas demonstrates the continued commitment by Sprint to invest in its network through Network Vision. Sprint customers in these areas will soon enjoy ultra-fast data speeds and improved 3G voice quality. For the most up-to-date details on Sprint’s 4G LTE rollout, please visit www.sprint.com/4GLTE.

Sprint confident about the future of Windows Phone 8

Dan Graziano — Tue, 08 May 2012 22:50:10 +0000

Sprint’s director of consumer acquisition, David Owens, said at the CTIA Wireless trade show on Tuesday that he’s “still bullish on Apollo,” possibly indicating the nation’s third-largest carrier plans to soon offer a wider selection of Windows Phone devices, PCMag reported. Owens at CES in January said the network’s only Windows Phone handset, the HTC Arrive, hadn’t “done well enough for us to jump back into the fire.” He did say, however, that Sprint would look into Windows Phone 8, known as Apollo, in the “August-September time period.” When asked about Samsung’s Galaxy S III, Owens said the carrier was “very pleased with the success of the Galaxy S II,” but he would not give further details about Samsung’s next-generation flagship phone. Owens did say that Sprint plans to release “12-15 LTE devices” between now and the end of the year, including smartphones, tablets, USB modems and hotspots. So far, the company has announced the Samsung Galaxy Nexus, LG Viper and the HTC EVO 4G LTE.

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Samsung Galaxy S III tipped to land on all four major U.S. carriers

Zach Epstein — Fri, 04 May 2012 14:10:44 +0000

Samsung’s new flagship smartphone may launch on all four major U.S. carriers as well as a number of regional carriers beginning this summer. Samsung on Thursday unveiled the Galaxy S III during a press conference in London, and the vendor said its sleek new smartphone will launch on nearly 300 different wireless service providers around the world in the coming months. At the same time, Samsung added a page on its U.S. website that allows users to sign up to receive more information about the Galaxy S III when it becomes available. On the page, a drop-down menu asks users to select their carrier preference, and found within that list are AT&T, C Spire Wireless, MetroPCS, Sprint, T-Mobile, U.S. Cellular and Verizon Wireless. While this is by no means confirmation that the handset will launch on each of the seven carriers listed, it seems unlikely that Samsung would simply list random carriers and omit popular options such as Cricket, which currently offers a Samsung smartphone, and other sizable regional carriers. Samsung’s current flagship phone, the Galaxy S II, is available from all major U.S. carriers with the exception of Verizon Wireless.

[Via TmoNews]

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Samsung Galaxy S III coming to Sprint

Dan Graziano — Thu, 03 May 2012 22:55:53 +0000

During Samsung’s announcement of its flagship Galaxy S III smartphone, the manufacturer did not reveal which U.S. carriers would offer the device. According to The Verge’s anonymous sources, however, Sprint will launch the highly anticipated handset later this year. The nation’s third-largest carrier has previously offered a variant of the Galaxy S, Galaxy S II, Nexus S and Galaxy Nexus smartphones. While details surrounding a Sprint-specific model are unavailable at this time, the device will most likely run on the carrier’s upcoming 4G LTE network.

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Sprint confirms unlimited data plan for next iPhone

Dan Graziano — Wed, 25 Apr 2012 17:40:20 +0000

Sprint, the nation’s third largest wireless carrier, is the only major wireless provider that continues to offer unlimited smartphone data plans. When its network finally landed Apple’s iPhone, many people feared unlimited data would be heading out the door. Sprint continued to offer the plans, however, and will continue to do so even after its 4G LTE network goes live later this year and once it launches Apple’s next-generation iPhone. ”I’m not anticipating the unlimited plan would change by that point,” Sprint CEO Dan Hesse told CNET. “That’s our distinctive differentiator.” The CEO believes the decision to stick with unlimited data for the iPhone has proved helpful in the company’s mission to appeal to new customers. “Frankly, it’s a marriage made in heaven,” he said about the combination of unlimited and the iPhone. “We’re clearly attracting customers from our competitors.” Hesse stressed, however, that he didn’t know when Apple would release the next iPhone, or whether it would even have LTE. “Our expectation is that we will all get the same device at the same time,” he said.

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Sprint posts $863 million loss in Q1, adds 263,000 net Sprint subscribers

Zach Epstein — Wed, 25 Apr 2012 11:35:42 +0000

Sprint posted its first-quarter financial results on Wednesday ahead of the bell. Analysts were anticipating another rough quarter, and Wall Street’s consensus had the nation’s No.3 carrier losing $0.42 per share on revenue of $8.71 billion. The numbers are now in and Sprint beat analysts’ expectations, reported a loss of $0.29 per share, or a net loss of $863 million, on $8.73 billion in sales. Sprint’s subscriber count was also in the spotlight ahead of Tuesday morning’s earnings report, and estimates suggested Sprint would shed anywhere from 22,000 to 125,000 net subscribers. Sprint has now confirmed that it added 263,000 net postpaid subscribers under the Sprint brand during the quarter thanks to iPhone sales totaling 1.5 million units, but it lost 192,000 net contract subscribers as its Nextel platform shed 455,000 postpaid customers. The carrier posted a massive $1.3 billion loss in the fourth quarter last year though the addition of Apple’s iPhone helped it add 1.6 million net subscribers, and it reported a loss of $439 million while adding 310,000 net subscribers in the first quarter of 2011. Sprint’s full press release follows below.

Sprint Nextel Reports First Quarter 2012 Results

Best ever Sprint platform postpaid ARPU increase of $4.03, or 6.9 percent, year-over-year drives Sprint platform wireless service revenue growth of 16 percent year-over-year

Operating loss of $255 million; Adjusted OIBDA* of $1.2 billion, which includes $104 million in Network Vision related operating expense

263,000 postpaid net additions on the Sprint platform in the quarter – eighth consecutive quarter of postpaid subscriber growth on the Sprint platform

Total company net additions of more than 1 million for the sixth consecutive quarter

Strong iPhone sales of more than 1.5 million – 44 percent to new customers

Network Vision deployment continues on track

Continue to expect six major cities to launch 4G LTE by mid-year

Continue to expect 12,000 sites on air by end of 2012

To date work has begun on 25 percent of planned 2012 sites; 5 percent are on air

Nearly 1,300 iDEN sites taken off air to date; expect 9,600 total by the end of the third quarter

The company’s first quarter 2012 earnings conference call will be held at 8 a.m. ET today. Participants may dial 800-938-1120 in the U.S. or Canada (706-634-7849 internationally) and provide the following ID: 68178739 or may listen via the Internet at www.sprint.com/investor.

OVERLAND PARK, Kan.–(BUSINESS WIRE)–Sprint Nextel Corp. (NYSE: S) today reported a net loss of $863 million and a diluted net loss of $.29 per share for the first quarter of 2012. This compares to a net loss of $439 million and a diluted net loss of $.15 per share in the first quarter of 2011 and includes depreciation of approximately $543 million, or negative $.18 cents per share, primarily due to accelerated depreciation related to the expected shut down of the Nextel platform and a one-time net benefit of $170 million, or approximately $.06 per share, related to the spectrum hosting contract termination with LightSquared. The company had wireless service revenues of $7.2 billion during the quarter, an increase of more than 7 percent year-over-year, driven primarily by Sprint platform postpaid ARPU growth of $4.03 – the largest year-over-year increase on record for the U.S. wireless industry. The company reported total net subscriber additions of nearly 1.1 million during the first quarter, bringing total ending subscribers to a record 56 million.

“The value and simplicity of our unlimited data, talk and text plans, combined with an unsurpassed customer experience and our increasingly robust device portfolio make for a strong combination.”

The total number of customers on the Sprint platform grew almost 4 percent sequentially including 263,000 postpaid net subscriber additions, 870,000 prepaid net subscriber additions and 785,000 wholesale and affiliate net subscriber additions. Sprint recorded more than 1.5 million iPhone^® sales in the first quarter with 44 percent going to new customers. Prepaid churn on the Sprint platform improved to 2.92 percent, the tenth consecutive quarter of year-over-year improvement.

“The continuing revenue growth on the Sprint platform, which represents the future of our company, driven by record ARPU improvement and strong net subscriber growth, contributed to our Adjusted OIBDA* performance of $1.2 billion,” said Dan Hesse, Sprint CEO. “The value and simplicity of our unlimited data, talk and text plans, combined with an unsurpassed customer experience and our increasingly robust device portfolio make for a strong combination.”

NETWORK VISION HIGHLIGHTS

Sprint’s Network Vision initiative remains on track. To date, the company has approximately 600 sites on air, which are meeting speed and coverage enhancement targets. Zoning requirements are completed for approximately 9,700 sites and leasing agreements have been completed for close to 7,700 sites. More than 3,200 sites are in notice to proceed status and work has started on approximately 3,000. Sprint expects to bring approximately 12,000 sites on air by the end of 2012 and to complete the majority of its Network Vision roll-out in 2013. The company has also taken approximately 1,300 iDEN sites off air to date and expects to shut down a total of 9,600 before the end of the third quarter.

In addition, as part of Network Vision, Sprint continues to expect to launch 4G LTE in six major cities by mid-year 2012 including Houston, Dallas, San Antonio, Atlanta, Kansas City and Baltimore. This week, Sprint launched its first two 4G LTE smartphones – Galaxy Nexus™ and LG Viper™ 4G LTE with eco-friendly features – and earlier this month also announced the upcoming launch of HTC EVO 4G LTE™.

“We continue to hit our key internal milestones and make significant progress on Network Vision,” said Hesse.

CUSTOMER EXPERIENCE AND BRAND HIGHLIGHTS

During the first quarter, Sprint recorded its lowest level of calls to customer care per postpaid subscriber on record, consistent with more third-party recognition of Sprint’s customer experience. Sprint was ranked by J.D. Power and Associates highest among full-service providers in its 2012 Wireless Purchase Experience Study, Volume 1. Boost Mobile was ranked highest among non-contract providers in the same study and Virgin Mobile USA received the highest ranking in the J.D. Power and Associates 2012 Wireless Customer Care Non-Contract Study – Volume 1, with Boost placing second. This month, Sprint Wholesale collected four 2012 Domestic Best-In-Class Awards from Atlantic-ACM in the categories of Network, Provisioning, Customer Service and Sales Representatives. Sprint also received the ATLANTIC ACM Best-in-Class Network Award for Global Wholesale Excellence earlier this year and Frost & Sullivan identified Sprint as an excellent example of an end-to-end mobile solution provider for the small business sector.

Sprint also launched several innovative products and services in addition to its 4G LTE devices. Sprint introduced its first tablet for under $100 with a two year agreement, ZTE Optik™ as well as ZTE Fury™, a family-friendly Android-powered device. Boost Mobile began offering LG Rumor Reflex™ – the fifth device from Sprint with eco-friendly attributes and the second from Boost. Additionally, the company introduced Sprint Complete Collaboration, the most comprehensive hosted and fully managed unified communications bundle available for businesses and launched additional Sprint Biz 360 solutions, phone and applications for small businesses. Sprint also created New Ventures, a new organization focused on delivering new business models that leverage open platforms to drive revenue and overall customer satisfaction for the global marketplace.

LIQUIDITY

During the first quarter, Sprint raised additional financing of $2 billion to help fund the Network Vision deployment, debt maturities and working capital requirements over the next few years. This followed financing of $4 billion raised in the fourth quarter of 2011. Sprint’s next scheduled debt maturities include $300 million due in May 2013 and $1.5 billion due in October 2013. As of March 31, 2012, the company’s total liquidity was approximately $8.8 billion, consisting of $7.6 billion in cash, cash equivalents and short-term investments and $1.2 billion of undrawn borrowing capacity available under its revolving bank credit facility. Sprint generated $978 million of net cash provided by operating activities and $138 million of Free Cash Flow* in the quarter.

CONSOLIDATED RESULTS

TABLE NO. 1 Selected Consolidated Financial Data (Unaudited) (dollars in millions, except per share data)

Quarter To Date

Financial Data March 31,
2012 March 31,
2011 %
∆

Net operating revenues $ 8,734 $ 8,313 5 %

Operating (loss) income $ (255 ) $ 259 NM

Adjusted OIBDA* $ 1,213 $ 1,514 (20 ) %

Adjusted OIBDA margin* 15.2 % 19.9 %

Net loss⁽¹⁾ $ (863 ) $ (439 ) (97 ) %

Diluted net loss per common share⁽¹⁾ $ (0.29 ) $ (0.15 ) (93 ) %

Capital expenditures ⁽²⁾ $ 800 $ 555 44 %

Net cash provided by operating activities $ 978 $ 919 6 %

Free Cash Flow* $ 138 $ 178 (22 ) %

Consolidated net operating revenues of $8.7 billion for the quarter were 5 percent higher than in the first quarter of 2011 and nearly unchanged from the fourth quarter of 2011. The quarterly year-over-year improvement was primarily due to higher wireless service revenues, partially offset by a reduction in wireline revenue. Sequentially, higher wireless service revenues were offset by lower wireless equipment revenue and lower wireline revenue.

Operating loss was $255 million compared to operating income of $259 million for the first quarter of 2011 and an operating loss of $438 million for fourth quarter of 2011. The quarterly year-over-year and sequential impacts to operating loss were driven by items identified below in Adjusted OIBDA* coupled with a first quarter 2012 increase in depreciation expense resulting primarily from accelerated depreciation related to the expected decommissioning of the Nextel network and a one-time net gain associated with the termination of our spectrum hosting contract in the first quarter of 2012.

Adjusted OIBDA* was $1.2 billion for the quarter, compared to $1.5 billion for the first quarter of 2011 and $842 million in the fourth quarter of 2011. The quarterly year-over-year decline in Adjusted OIBDA* was primarily due to higher equipment net subsidy, higher wireless cost of service and lower wireline revenues, partially offset by higher postpaid and prepaid wireless service revenues. Sequentially, Adjusted OIBDA* increased primarily as a result of higher wireless service revenues and lower equipment net subsidy and sales expense primarily associated with fewer handset sales.

Capital expenditures⁽²⁾, excluding capitalized interest of $115 million, were $800 million in the quarter, compared to $555 million in the first quarter of 2011 and $900 million in the fourth quarter of 2011. Wireless capital expenditures were $710 million in the first quarter of 2012, compared to $449 million in the first quarter of 2011 and $774 million in the fourth quarter of 2011. During the quarter, the company invested approximately $315 million for our Network Vision program and approximately $250 million in data capacity related to both legacy network and Network Vision equipment. Wireline capital expenditures were $45 million in the first quarter of 2012, compared to $53 million in the first quarter of 2011 and $34 million in the fourth quarter of 2011. Corporate capital expenditures were $45 million in the first quarter of 2012, compared to $53 million in the first quarter of 2011 and $92 million in the fourth quarter of 2011, primarily related to IT infrastructure to support our Wireless and Wireline businesses.

Net cash provided by operating activities was $978 million for the quarter, compared to $919 million for the first quarter of 2011 and $1.1 billion for the fourth quarter of 2011.

Free Cash Flow* was $138 million for the quarter, compared to $178 million for the first quarter of 2011 and $257 million for the fourth quarter of 2011.

WIRELESS RESULTS

Wireless Customers

The company served more than 56 million customers at the end of the first quarter of 2012. This includes 32.8 million postpaid subscribers (29 million on the Sprint platform and 3.8 million on the Nextel platform), 15.3 million prepaid subscribers (13.7 million on the Sprint platform and 1.6 million on the Nextel platform) and approximately 8 million wholesale and affiliate subscribers, all of whom utilize the Sprint platform.

The Sprint platform added 263,000 net postpaid customers during the quarter. The Nextel platform lost 455,000 net postpaid customers in the quarter. Sprint platform postpaid net additions and Nextel platform postpaid net subscriber losses include 228,000 net subscribers who migrated from the Nextel platform to the Sprint platform.

The company added 489,000 net prepaid subscribers during the quarter, which includes net additions of 870,000 prepaid Sprint platform customers, offset by net losses of 381,000 prepaid Nextel platform customers. Sprint platform prepaid net additions and Nextel platform prepaid net losses include 137,000 net subscribers who migrated from the Nextel platform to the Sprint platform.

For the quarter, the company added net additions of 785,000 wholesale and affiliate subscribers (all of which are on the Sprint platform) as a result of growth in MVNOs reselling prepaid services.

The credit quality of Sprint’s end-of-period postpaid customers was approximately 82 percent prime, relatively flat as compared to the fourth quarter of 2011.

Sprint Platform Churn and Nextel Recapture

For the quarter, the company reported Sprint platform postpaid churn of 2.00 percent, compared to 1.78 percent for the year-ago period and 1.99 percent for the fourth quarter of 2011. Quarterly, Sprint platform postpaid churn increased year-over-year primarily due to higher involuntary deactivations, which occur when Sprint disconnects a customer due to lack of payment or violations of terms and conditions. This is expected to be a temporary increase, the majority of which was associated with pricing actions taken in the second and third quarters of 2011 primarily through indirect channels. Sprint tightened its credit standards during the third and fourth quarters of 2011 to stem further impacts of these types of promotional activities by our indirect dealers.

Approximately 46 percent of total subscribers that left the postpaid Nextel platform during the period were retained on the Sprint postpaid platform as compared to 27 percent in the first quarter of 2011 and 39 percent in the fourth quarter of 2011.

Approximately 8 percent of Sprint platform postpaid customers upgraded their handsets during the first quarter as compared to 9 percent in the first quarter of 2011 and in the fourth quarter of 2011. The sequential decline was primarily driven by seasonality and is typical in the first quarter following fourth quarter holiday sales. The year-over-year decline was primarily due to changes in our upgrade eligibility policies.

Sprint platform prepaid churn for the first quarter was 2.92 percent, compared to 3.41 percent for the year-ago period and 3.07 percent for the fourth quarter of 2011. The quarterly year-over-year and sequential improvements in the Sprint platform prepaid churn were primarily a result of improvements in the Virgin Mobile and Boost brands, and continued changes in the mix of our subscriber base as a result of strong growth in the number of Assurance Wireless^® customers, who on average have lower churn than the remainder of our Sprint platform subscriber base.

TABLE NO. 2 Wireless Operating Statistics (Unaudited)

Quarter To Date

March 31,
2012 December 31,
2011 March 31,
2011

Net Additions (Losses) (in thousands)

Sprint platform:

Postpaid^(a) 263 539 253

Prepaid^(b) 870 899 1,406

Wholesale and affiliate 785 954 389

Total Sprint platform 1,918 2,392 2,048

Nextel platform:

Postpaid^(a) (455 ) (378 ) (367 )

Prepaid^(b) (381 ) (392 ) (560 )

Total Nextel platform (836 ) (770 ) (927 )

Total retail postpaid net (losses) additions (192 ) 161 (114 )

Total retail prepaid net additions 489 507 846

Total wholesale and affiliate net additions 785 954 389

Total Wireless Net Additions 1,082 1,622 1,121

End of Period Subscribers (in thousands)

Sprint platform:

Postpaid^(a) 28,992 28,729 27,699

Prepaid^(b) 13,698 12,828 9,941

Wholesale and affiliate 8,003 7,218 4,910

Total Sprint platform 50,693 48,775 42,550

Nextel platform:

Postpaid^(a) 3,830 4,285 5,299

Prepaid^(b) 1,580 1,961 3,182

Total Nextel platform 5,410 6,246 8,481

Total retail postpaid end of period subscribers 32,822 33,014 32,998

Total retail prepaid end of period subscribers 15,278 14,789 13,123

Total wholesale and affiliate end of period subscribers 8,003 7,218 4,910

Total End of Period Subscribers 56,103 55,021 51,031

Supplemental Data – Connected Devices

End of Period Subscribers (in thousands)

Retail postpaid 791 783 715

Wholesale and affiliate 2,217 2,077 1,883

Total 3,008 2,860 2,598

Churn

Sprint platform:

Postpaid 2.00 % 1.99 % 1.78 %

Prepaid 2.92 % 3.07 % 3.41 %

Nextel platform:

Postpaid 2.09 % 1.89 % 1.95 %

Prepaid 8.73 % 7.18 % 6.94 %

Total retail postpaid churn 2.01 % 1.98 % 1.81 %

Total retail prepaid churn 3.61 % 3.68 % 4.36 %

ARPU ^(c)

Sprint platform:

Postpaid $ 62.55 $ 61.22 $ 58.52

Prepaid $ 25.64 $ 25.16 $ 25.76

Nextel platform:

Postpaid $ 40.94 $ 41.91 $ 44.35

Prepaid $ 35.68 $ 34.91 $ 35.46

Total retail postpaid ARPU $ 59.88 $ 58.59 $ 56.17

Total retail prepaid ARPU $ 26.82 $ 26.62 $ 28.39

Postpaid Nextel Recapture Rate ^(d) 46 % 39 % 27 %

^(a) Postpaid subscribers on the Sprint platform are defined as retail postpaid subscribers on the CDMA network, including subscribers with PowerSource devices, and those utilizing WiMax technology. Postpaid subscribers on the Nextel platform are defined as retail postpaid subscribers on the iDEN network.

^(b) Prepaid subscribers on the Sprint platform are defined as retail prepaid subscribers who utilize CDMA technology via our multi-brand offerings. Prepaid subscribers on the Nextel platform are defined as retail prepaid subscribers who utilize iDEN technology via our multi-brand offerings.

^(c) ARPU is calculated by dividing service revenue by the sum of the average number of subscribers in the applicable service category. Changes in average monthly service revenue reflect subscribers for either the postpaid or prepaid service category who change rate plans, the level of voice and data usage, the amount of service credits which are offered to subscribers, plus the net effect of average monthly revenue generated by new subscribers and deactivating subscribers.

^(d) The Postpaid Nextel Recapture Rate is defined as the portion of total subscribers that left the postpaid Nextel platform during the quarter and were retained on the postpaid Sprint platform.

TABLE NO. 3 Selected Wireless Financial Data (Unaudited) (dollars in millions)

Quarter To Date

Financial Data March 31,
2012 March 31,
2011 %
∆

Net operating revenues $ 7,950 $ 7,413 7 %

Operating (loss) income $ (331 ) $ 140 NM

Adjusted OIBDA* $ 1,052 $ 1,283 (18 ) %

Adjusted OIBDA margin* 14.6 % 19.1 %

Capital expenditures ⁽²⁾ $ 710 $ 449 58 %

Wireless Service Revenues

Wireless retail service revenues of $7.1 billion for the quarter represent an increase of 7 percent compared to the first quarter of 2011 and an increase of approximately 3 percent compared to the fourth quarter of 2011. The quarterly year-over-year improvement was primarily due to higher postpaid ARPU as well as an increased number of net prepaid subscribers due to continued growth of Assurance Wireless and Virgin Mobile Beyond Talk customers, partially offset by lower prepaid ARPU. Sequentially, wireless retail service revenues increased, primarily as a result of higher postpaid ARPU and growth in the number of prepaid subscribers.

Wireless postpaid ARPU increased year-over-year from $56.17 to $59.88, the largest year-over-year postpaid ARPU growth in the company’s history, while sequentially ARPU increased from $58.59 to $59.88. Quarterly year-over-year and sequential ARPU benefited from higher monthly recurring revenues primarily as a result of the premium data add-on charges for smartphones introduced in the first quarter of 2011.

Prepaid ARPU of $26.82 for the quarter declined from $28.39 in the first quarter of 2011 and increased slightly from $26.62 in the fourth quarter of 2011. The decline in the year-over-year period is a result of a greater mix of Assurance Wireless customers who on average have lower ARPU than the remainder of our prepaid subscriber base, partially offset by improvements in Boost and Virgin Mobile ARPU.

Quarterly wholesale, affiliate and other revenues of $103 million increased by $34 million, compared to the year-ago period and increased by $29 million sequentially, resulting primarily from growth in MVNOs reselling prepaid services.

Wireless Operating Expenses

Total wireless net operating expenses were $8.3 billion in the first quarter, compared to $7.3 billion in the year-ago period and $8.4 billion in the fourth quarter of 2011.

Wireless equipment net subsidy in the first quarter was approximately $1.6 billion (equipment revenue of $735 million, less cost of products of $2.3 billion), compared to approximately $1.1 billion in the year-ago period and approximately $1.7 billion in the fourth quarter of 2011. The quarterly year-over-year increase in net subsidy is primarily due to the launch of the iPhone, which on average carries a higher subsidy rate per handset as compared to other handsets. The sequential decline in net subsidy is primarily due to a decline in postpaid handset sales typical for the first quarter following the fourth quarter holiday sales activity.

Wireless cost of service was flat sequentially, primarily due to lower 4G data costs, offset by higher Network Vision related expenses. Wireless cost of service increased approximately 12 percent year-over-year primarily due to higher 4G data costs, Network Vision related expenses, service and repair expenses and backhaul costs driven by higher data usage, partially offset by lower licenses and fees.

Wireless SG&A expenses increased approximately 2 percent year-over-year and declined by approximately 1 percent sequentially. Quarterly year-over-year SG&A expenses increased primarily due to higher bad debt and selling expenses, partially offset by lower marketing costs. Sales expenses increased year-over-year primarily due to iPhone point-of- sale discounts (subsidy) for devices directly sold by the manufacturer to indirect dealers in which Sprint does not take device title, as well as higher postpaid gross additions. The impact from the iPhone was partially offset by improvements in sales channel mix with a larger portion of activations coming from direct retail channels. Bad debt expense increased year-over-year by $60 million driven primarily by an increase in the agings of accounts receivable outstanding combined with a higher average write-off per account. Sequentially, SG&A expenses decreased primarily as a result of lower sales and bad debt expenses, partially offset by seasonally higher marketing expense. Sequentially, bad debt expense declined $50 million due to a seasonal improvement in the agings of accounts receivable outstanding.

Wireless depreciation and amortization expense increased $421 million year-over-year and $494 million sequentially primarily related to a reduction in estimated useful lives of certain assets. The year-over-year and sequential increase is primarily associated with accelerated depreciation on Nextel platform assets related to our decision to decommission that platform.

WIRELINE RESULTS

TABLE NO. 4 Selected Wireline Financial Data (Unaudited) (dollars in millions)

Quarter To Date

Financial Data March 31,
2012 March 31,
2011 %
∆

Net operating revenues $ 998 $ 1,120 (11 ) %

Operating income $ 78 $ 119 (35 ) %

Adjusted OIBDA* $ 161 $ 228 (29 ) %

Adjusted OIBDA margin* 16.1 % 20.4 %

Capital expenditures ⁽²⁾ $ 45 $ 53 (15 ) %

Wireline revenues of $1 billion for the quarter declined 11 percent year-over-year primarily as a result of an intercompany rate reduction based on current market prices for voice and IP services sold to the wireless segment as well as the scheduled migration of wholesale cable VoIP customers off of Sprint’s IP platform. Sequentially, first quarter wireline revenues declined 5 percent primarily due to a reduction in intercompany rates resulting from the decline in market-based prices for wireline services.

Total wireline net operating expenses were $920 million in the first quarter of 2012. Net operating expenses declined approximately 8 percent year-over-year and 7 percent sequentially due to lower cost of service from continued declines in voice and cable IP volumes, improvement in SG&A expenses and lower depreciation expenses.

Forecast

The company expects 2012 Adjusted OIBDA* to be at the high-end of the previous forecast of between $3.7 billion and $3.9 billion. Within that Adjusted OIBDA* expectation, we continue to anticipate full year consolidated net service revenue growth of 4 to 6 percent (consolidated revenue less wireless equipment revenue). Sprint continues to expect full year capital expenditures of approximately $6 billion in 2012, excluding capitalized interest.

Sprint Nextel Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Millions, except per Share Data)

TABLE NO. 5

Quarter To Date

March 31,
2012 December 31,
2011 March 31,
2011

Net Operating Revenues $ 8,734 $ 8,722 $ 8,313

Net Operating Expenses

Cost of services 2,787 2,788 2,584

Cost of products 2,298 2,631 1,812

Selling, general and administrative 2,436 2,461 2,403

Depreciation 1,590 1,098 1,122

Amortization 76 76 133

Other, net (198 ) 106 -

Total net operating expenses 8,989 9,160 8,054

Operating (Loss) Income (255 ) (438 ) 259

Interest expense (298 ) (287 ) (249 )

Equity in losses of unconsolidated investments and other, net ⁽³⁾ (273 ) (472 ) (412 )

Loss before Income Taxes (826 ) (1,197 ) (402 )

Income tax expense (37 ) (106 ) (37 )

Net Loss⁽¹⁾ $ (863 ) $ (1,303 ) $ (439 )

Basic and Diluted Net Loss Per Common Share⁽¹⁾ $ (0.29 ) $ (0.43 ) $ (0.15 )

Weighted Average Common Shares outstanding 2,999 2,997 2,992

Effective Tax Rate -4.5 % -8.9 % -9.2 %

NON-GAAP RECONCILIATION – NET LOSS TO ADJUSTED OIBDA* (Unaudited)
(Millions)

TABLE NO. 6

Quarter To Date

March 31,
2012 December 31,
2011 March 31,
2011

Net Loss⁽¹⁾ $ (863 ) $ (1,303 ) $ (439 )

Income tax expense (37 ) (106 ) (37 )

Loss before Income Taxes (826 ) (1,197 ) (402 )

Equity in losses of unconsolidated investments and other, net ⁽³⁾ 273 472 412

Interest expense 298 287 249

Operating (Loss) Income (255 ) (438 ) 259

Depreciation and amortization 1,666 1,174 1,255

OIBDA* 1,411 736 1,514

Severance and exit costs ⁽⁴⁾ - 28 -

Gains from asset dispositions and exchanges⁽⁵⁾ (29 ) - -

Asset impairments and abandonments ⁽⁶⁾ 18 78 -

Spectrum hosting contract termination, net ⁽⁷⁾ (170 ) - -

Access costs⁽⁸⁾ (17 ) - -

Adjusted OIBDA* 1,213 842 1,514

Capital expenditures ⁽²⁾ 800 900 555

Adjusted OIBDA* less Capex $ 413 $ (58 ) $ 959

Adjusted OIBDA Margin* 15.2 % 10.8 % 19.9 %

Selected item:

Deferred tax asset valuation allowance $ 348 $ 569 $ 196

Sprint Nextel Corporation
WIRELESS STATEMENTS OF OPERATIONS (Unaudited)
(Millions)

TABLE NO. 7

Quarter To Date

March 31,
2012 December 31,
2011 March 31,
2011

Net Operating Revenues

Service revenue

Sprint platform:

Postpaid ^(a) $ 5,408 $ 5,217 $ 4,842

Prepaid ^(b) 1,016 929 712

Wholesale, affiliate and other 103 74 69

Total Sprint platform 6,527 6,220 5,623

Nextel platform:

Postpaid ^(a) 500 563 729

Prepaid ^(b) 188 227 366

Total Nextel platform 688 790 1,095

Equipment revenue 735 910 695

Total net operating revenues 7,950 7,920 7,413

Net Operating Expenses

Cost of services 2,289 2,291 2,047

Cost of products 2,298 2,631 1,812

Selling, general and administrative 2,311 2,330 2,271

Depreciation 1,488 988 1,012

Amortization 76 82 131

Other, net (181 ) 98 -

Total net operating expenses 8,281 8,420 7,273

Operating (Loss) Income $ (331 ) $ (500 ) $ 140

Supplemental Revenue Data

Total retail service revenue $ 7,112 $ 6,936 $ 6,649

Total service revenue $ 7,215 $ 7,010 $ 6,718

^(a) Postpaid subscribers on the Sprint platform are defined as retail postpaid subscribers on the CDMA network, including subscribers with PowerSource devices, and those utilizing WiMax technology. Postpaid subscribers on the Nextel platform are defined as retail postpaid subscribers on the iDEN network.

^(b) Prepaid subscribers on the Sprint platform are defined as retail prepaid subscribers who utilize CDMA technology via our multi-brand offerings. Prepaid subscribers on the Nextel platform are defined as retail prepaid subscribers who utilize iDEN technology via our multi-brand offerings.

NON-GAAP RECONCILIATION Quarter To Date

March 31,
2012 December 31,
2011 March 31,
2011

Operating (Loss) Income $ (331 ) $ (500 ) $ 140

Severance and exit costs ⁽⁴⁾ - 25 -

Gains from asset dispositions and exchanges⁽⁵⁾ (29 ) - -

Asset impairments and abandonments ⁽⁶⁾ 18 73 -

Spectrum hosting contract termination, net ⁽⁷⁾ (170 ) - -

Depreciation 1,488 988 1,012

Amortization 76 82 131

Adjusted OIBDA* 1,052 668 1,283

Capital expenditures ⁽²⁾ 710 774 449

Adjusted OIBDA* less Capex $ 342 $ (106 ) $ 834

Adjusted OIBDA Margin* 14.6 % 9.5 % 19.1 %

Sprint Nextel Corporation
WIRELINE STATEMENTS OF OPERATIONS (Unaudited)
(Millions)

TABLE NO. 8

Quarter To Date

March 31,
2012 December 31,
2011 March 31,
2011

Net Operating Revenues

Voice $ 417 $ 475 $ 486

Data 108 103 116

Internet 453 459 497

Other 20 17 21

Total net operating revenues 998 1,054 1,120

Net Operating Expenses

Costs of services and products 716 748 759

Selling, general and administrative 121 128 133

Depreciation 100 109 109

Other, net (17 ) 9 -

Total net operating expenses 920 994 1,001

Operating Income $ 78 $ 60 $ 119

NON-GAAP RECONCILIATION Quarter To Date

March 31,
2012 December 31,
2011 March 31,
2011

Operating Income $ 78 $ 60 $ 119

Severance and exit costs ⁽⁴⁾ - 3 -

Asset impairments and abandonments ⁽⁶⁾ - 6 -

Access costs⁽⁸⁾ (17 ) - -

Depreciation 100 109 109

Adjusted OIBDA* 161 178 228

Capital expenditures ⁽²⁾ 45 34 53

Adjusted OIBDA* less Capex $ 116 $ 144 $ 175

Adjusted OIBDA Margin* 16.1 % 16.9 % 20.4 %

Sprint Nextel Corporation
CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Unaudited)
(Millions)

TABLE NO. 9

Quarter Ended

March 31,
2012 December 31,
2011 March 31,
2011

Operating Activities

Net loss $ (863 ) $ (1,303 ) $ (439 )

Asset impairments 18 78 -

Depreciation and amortization 1,666 1,174 1,255

Provision for losses on accounts receivable 136 189 73

Share-based compensation expense 17 22 18

Deferred income taxes 32 117 27

Equity in losses of unconsolidated investments and other, net ⁽³⁾ 273 472 412

Gains from asset dispositions and exchanges (29 ) - -

Contribution to pension plan (92 ) (12 ) (100 )

Spectrum hosting contract termination, net⁽⁷⁾ (170 ) - -

Other working capital changes, net 26 640 (369 )

Other, net (36 ) (288 ) 42

Net cash provided by operating activities 978 1,089 919

Investing Activities

Capital expenditures ⁽²⁾ (783 ) (909 ) (644 )

Expenditures relating to FCC licenses (56 ) (59 ) (74 )

Reimbursements relating to FCC licenses ⁽⁹⁾ - 135 -

Change in short-term investments, net (327 ) 90 (40 )

Investment in Clearwire (128 ) (331 ) -

Other, net (1 ) 1 (23 )

Net cash used in investing activities (1,295 ) (1,073 ) (781 )

Financing Activities

Proceeds from debt and financings 2,000 4,000 -

Debt financing costs (36 ) (83 ) (3 )

Repayments of debt and capital lease obligations (2 ) (2,251 ) (1,652 )

Other, net 3 4 2

Net cash provided by (used in) financing activities 1,965 1,670 (1,653 )

Net Increase (Decrease) in Cash and Cash Equivalents 1,648 1,686 (1,515 )

Cash and Cash Equivalents, beginning of period 5,447 3,761 5,173

Cash and Cash Equivalents, end of period $ 7,095 $ 5,447 $ 3,658

RECONCILIATION TO FREE CASH FLOW* (NON-GAAP) (Unaudited)
(Millions)

TABLE NO. 10

Quarter Ended

March 31,
2012 December 31,
2011 March 31,
2011

Net Cash Provided by Operating Activities $ 978 $ 1,089 $ 919

Capital expenditures ⁽²⁾ (783 ) (909 ) (644 )

Expenditures relating to FCC licenses, net ⁽⁹⁾ (56 ) 76 (74 )

Other investing activities, net (1 ) 1 (23 )

Free Cash Flow* 138 257 178

Debt financing costs (36 ) (83 ) (3 )

Increase (decrease) in debt and other, net 1,998 1,749 (1,652 )

Investment in Clearwire (128 ) (331 ) -

Other financing activities, net 3 4 2

Net Increase (Decrease) in Cash, Cash Equivalents and Short-Term Investments $ 1,975 $ 1,596 $ (1,475 )

Sprint Nextel Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Millions)

TABLE NO. 11

March 31,
2012 December 31,
2011

Assets

Current assets

Cash and cash equivalents $ 7,095 $ 5,447

Short-term investments 477 150

Accounts and notes receivable, net 3,216 3,206

Device and accessory inventory 693 913

Deferred tax assets 115 130

Prepaid expenses and other current assets 628 491

Total current assets 12,224 10,337

Investments and other assets 2,453 2,609

Property, plant and equipment, net 13,500 14,009

Goodwill 359 359

FCC licenses and other 20,540 20,453

Definite-lived intangible assets, net 1,541 1,616

Total $ 50,617 $ 49,383

Liabilities and Shareholders’ Equity

Current liabilities

Accounts payable $ 2,847 $ 2,495

Accrued expenses and other current liabilities 3,584 3,996

Current portion of long-term debt, financing and capital lease obligations 8 8

Total current liabilities 6,439 6,499

Long-term debt, financing and capital lease obligations 22,260 20,266

Deferred tax liabilities 7,013 6,986

Other liabilities 4,314 4,205

Total liabilities 40,026 37,956

Shareholders’ equity

Common shares 5,995 5,992

Paid-in capital 46,723 46,716

Treasury shares, at cost - -

Accumulated deficit (41,352 ) (40,489 )

Accumulated other comprehensive loss (775 ) (792 )

Total shareholders’ equity 10,591 11,427

Total $ 50,617 $ 49,383

NET DEBT* (NON-GAAP) (Unaudited)
(Millions)

TABLE NO. 12

March 31,
2012 December 31,
2011

Total Debt $ 22,268 $ 20,274

Less: Cash and cash equivalents (7,095 ) (5,447 )

Less: Short-term investments (477 ) (150 )

Net Debt* $ 14,696 $ 14,677

Sprint Nextel Corporation
SCHEDULE OF DEBT (Unaudited)
(Millions)

TABLE NO. 13

March 31,
2012

ISSUER COUPON MATURITY PRINCIPAL

Sprint Nextel Corporation

Export Development Canada Facility (Tranche 2) 5.486% 12/15/2015 $ 500

6% Senior Notes due 2016 6.000% 12/01/2016 2,000

9.125% Senior Notes due 2017 9.125% 03/01/2017 1,000

8.375% Senior Notes due 2017 8.375% 08/15/2017 1,300

9% Guaranteed Notes due 2018 9.000% 11/15/2018 3,000

7% Guaranteed Notes due 2020 7.000% 03/01/2020 1,000

11.5% Senior Notes due 2021 11.500% 11/15/2021 1,000

9.25% Debentures due 2022 9.250% 04/15/2022 200

Sprint Nextel Corporation 10,000

Sprint Capital Corporation

6.9% Senior Notes due 2019 6.900% 05/01/2019 1,729

6.875% Senior Notes due 2028 6.875% 11/15/2028 2,475

8.75% Senior Notes due 2032 8.750% 03/15/2032 2,000

Sprint Capital Corporation 6,204

Nextel Communications Inc.

6.875% Senior Serial Redeemable Notes due 2013 6.875% 10/31/2013 1,473

5.95% Senior Serial Redeemable Notes due 2014 5.950% 03/15/2014 1,170

7.375% Senior Serial Redeemable Notes due 2015 7.375% 08/01/2015 2,137

Nextel Communications Inc. 4,780

iPCS Inc.

First Lien Senior Secured Floating Rate Notes due 2013 2.672% 05/01/2013 300

Second Lien Senior Secured Floating Rate Notes due 2014 3.797% 05/01/2014 181

iPCS Inc. 481

Tower financing obligation 9.500% 01/15/2030 698

Capital lease obligations and other 2014 – 2022 69

TOTAL PRINCIPAL 22,232

Net premiums 36

TOTAL DEBT $ 22,268

Sprint Nextel Corporation
RECONCILIATION OF RETAIL POSTPAID NET (LOSSES) ADDITIONS
TO ADJUSTED SPRINT PLATFORM POSTPAID NET ADDITIONS
(Thousands)

TABLE NO. 14

Quarter To Date

March 31,
2012 December 31,
2011 March 31,
2011

Retail postpaid net (losses) additions (192 ) 161 (114 )

Less: Nextel platform net losses (455 ) (378 ) (367 )

Sprint platform net additions 263 539 253

Less adjustments:

Nextel PowerSource (30 ) (33 ) (57 )

Helio - -

Adjusted Sprint platform net additions 293 572 310

Sprint Nextel Corporation
NOTES TO THE FINANCIAL INFORMATION (Unaudited)

⁽¹⁾ Results include pre-tax, non-cash equity in losses of unconsolidated investments and other, net of $273 million ($.09 per share), $472 million ($.16 per share) and $412 million ($.14 per share) in the first quarter of 2012 and the fourth and first quarters of 2011, respectively.

⁽²⁾ Capital expenditures is an accrual based amount that includes the changes in unpaid capital expenditures and excludes capitalized interest. Cash paid for capital expenditures for the first quarter 2012 and fourth quarter 2011, respectively, includes $115 million and $99 million of total capitalized interest and can be found in the condensed consolidated cash flow information on Table No. 9 and the reconciliation to Free Cash Flow* on Table No. 10.

⁽³⁾ The fourth quarter 2011 includes a non-cash impairment of $135 million to reflect a reduction of our investment in Clearwire to its estimated fair value, and a dilution loss of approximately $27 million associated with the fourth quarter reduction of Sprint’s economic interest from 53.5% to 51.5% as a result of Clearwire’s fourth quarter 2011 equity offering.

⁽⁴⁾ Severance and exit costs are primarily related to work force reductions, lease termination charges, and organizational realignment initiatives.

⁽⁵⁾ For the first quarter 2012, gains from asset dispositions and exchanges are primarily due to spectrum exchange transactions.

⁽⁶⁾ For the first quarter 2012, asset impairments and abandonments relate to a change in our backhaul architecture in connection to our Network Vision design from microwave to a more cost effective fiber backhaul.

⁽⁷⁾ On March 16, 2012, we elected to terminate the arrangement with LightSquared LP and LightSquared, Inc. (LightSquared). As we have no future service obligations with respect to the arrangement with LightSquared, we recognized $236 million of the advanced payments as other operating income in the first quarter of 2012. As a result of the termination of the hosting agreement, we impaired capitalized costs specific to LightSquared’s 1.6 GHz spectrum that the Company no longer intends to deploy which totaled $66 million.

⁽⁸⁾ Favorable developments during the first quarter of 2012 relating to disagreements with local exchange carriers resulted in a reduction in expected access costs of $17 million.

⁽⁹⁾ $135 million in reimbursements were received in the fourth quarter of 2011 from the mobile satellite service (MSS) entrants for their pro rata share of our costs of clearing a portion of the 1.9 GHz spectrum related to spectrum reconfiguration under FCC’s Report and Order.

*FINANCIAL MEASURES

Sprint Nextel provides financial measures determined in accordance with accounting principles generally accepted in the United States (GAAP) and adjusted GAAP (non-GAAP). The non-GAAP financial measures reflect industry conventions, or standard measures of liquidity, profitability or performance commonly used by the investment community for comparability purposes. These measurements should be considered in addition to, but not as a substitute for, financial information prepared in accordance with GAAP. We have defined below each of the non-GAAP measures we use, but these measures may not be synonymous to similar measurement terms used by other companies.

Sprint Nextel provides reconciliations of these non-GAAP measures in its financial reporting. Because Sprint Nextel does not predict special items that might occur in the future, and our forecasts are developed at a level of detail different than that used to prepare GAAP-based financial measures, Sprint Nextel does not provide reconciliations to GAAP of its forward-looking financial measures.

The measures used in this release include the following:

OIBDA is operating income/(loss) before depreciation and amortization. Adjusted OIBDA is OIBDA excluding severance, exit costs, and other special items. Adjusted OIBDA Marginrepresents Adjusted OIBDA divided by non-equipment net operating revenues for Wireless and Adjusted OIBDA divided by net operating revenues for Wireline. We believe that Adjusted OIBDA and Adjusted OIBDA Margin provide useful information to investors because they are an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, spectrum acquisitions and other investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent non-cash current period costs associated with the use of long-lived tangible and definite-lived intangible assets. Adjusted OIBDA and Adjusted OIBDA Margin are calculations commonly used as a basis for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the telecommunications industry.

Free Cash Flow is the cash provided by operating activities less the cash used in investing activities other than short-term investments and equity method investments during the period. We believe that Free Cash Flow provides useful information to investors, analysts and our management about the cash generated by our core operations after interest and dividends, if any, and our ability to fund scheduled debt maturities and other financing activities, including discretionary refinancing and retirement of debt and purchase or sale of investments.

Net Debt is consolidated debt, including current maturities, less cash and cash equivalents, short-term investments and if any, restricted cash. We believe that Net Debt provides useful information to investors, analysts and credit rating agencies about the capacity of the company to reduce the debt load and improve its capital structure.

SAFE HARBOR

This news release includes “forward-looking statements” within the meaning of the securities laws. The statements in this news release regarding the business outlook, expected performance and forward-looking guidance, as well as other statements that are not historical facts, are forward-looking statements. The words “may,” “could,” “should,” “estimate,” “project,” “forecast,” “intend,” “expect,” “believe,” “anticipate,” “target,” “providing guidance” and similar expressions are intended to identify forward-looking statements.

Forward-looking statements are estimates and projections reflecting management’s judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, customer and network usage, customer growth and retention, pricing, operating costs, the timing of various events and the economic and regulatory environment.

Future performance cannot be assured. Actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include:

our ability to retain and attract subscribers;

the ability of our competitors to offer products and services at lower prices due to lower cost structures;

the effects of vigorous competition on a highly penetrated market, including the impact of competition on the price we are able to charge subscribers for services and equipment we provide and our ability to retain existing subscribers and attract new subscribers; the impact of equipment net subsidy costs; the impact of increased purchase commitments; the overall demand for our service offerings, including the impact of decisions of new or existing subscribers between our postpaid and prepaid services offerings and between our two network platforms; and the impact of new, emerging and competing technologies on our business;

the ability to generate sufficient cash flow to fully implement our network modernization plan, Network Vision, to improve and enhance our networks and service offerings, improve our operating margins, implement our business strategies and provide competitive new technologies;

the effective implementation of Network Vision, including timing, execution, technologies, and costs;

our ability to migrate subscribers off the Nextel platform and mitigate related increases in churn;

our ability to access additional spectrum capacity, including through spectrum hosting arrangements;

changes in available technology and the effects of such changes, including product substitutions and deployment costs;

our ability to obtain additional financing on terms acceptable to us, or at all;

volatility in the trading price of our common stock, current economic conditions and our ability to access capital;

the impact of unrelated parties not meeting our business requirements, including a significant adverse change in the ability or willingness of such parties to provide devices or infrastructure equipment for our networks;

the costs and business risks associated with providing new services and entering new geographic markets;

the financial performance of Clearwire and its ability to fund, build, operate, and maintain its 4G network, including an LTE network;

our ability to access Clearwire’s spectrum capacity;

the compatibility of Sprint’s LTE network with Clearwire’s LTE network;

the effects of mergers and consolidations and new entrants in the communications industry and unexpected announcements or developments from others in the communications industry;

unexpected results of litigation filed against us or our suppliers or vendors;

the impact of adverse network performance;

the costs or potential customer impacts of compliance with regulatory mandates including, but not limited to, compliance with the FCC’s Report and Order to reconfigure the 800 MHz band;

equipment failure, natural disasters, terrorist acts or other breaches of network or information technology security;

one or more of the markets in which we compete being impacted by changes in political, economic or other factors such as monetary policy, legal and regulatory changes or other external factors over which we have no control; and

other risks referenced from time to time in our filings with the Securities and Exchange Commission, including the “Risk Factors” described in our annual report on Form 10-K for the year ended Dec. 31, 2011.

Sprint Nextel believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date of this release. Sprint Nextel is not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this release.

Clearwire’s first quarter 2012 results from operations have not yet been finalized. As a result, the amount reflected for Sprint’s share of Clearwire’s results of operations for the quarter ended March 31, 2012, is an estimate and, based upon the finalization of Clearwire’s results, may need to be revised if our estimate materially differs from Clearwire’s actual results. Changes in our estimate, if any, would affect the carrying value of our investment in Clearwire, net loss, basic and diluted net loss per common share, and comprehensive loss but would have no effect on Sprint’s operating income, OIBDA*, Adjusted OIBDA* or consolidated statement of cash flows.

Galaxy Nexus pre-orders sell out at Sprint

Zach Epstein — Fri, 20 Apr 2012 19:05:03 +0000

Sprint’s highly anticipated Samsung Galaxy Nexus is no longer available for pre-order after initial stock sold out this week. Pre-order availability began just this past Monday, and Sprint’s pre-sales launch inventory was depleted by Thursday evening. It is difficult to gauge demand since the number of Galaxy Nexus handsets Sprint had allocated for pre-sales is unknown, but a source told BGR that “pre-sales supply was healthy” ahead of the device’s launch on April 22nd. The Samsung Galaxy Nexus features a 4.65-inch Super AMOLED display with 720p resolution, Android 4.0 Ice Cream Sandwich, a dual-core 1.2GHz processor, a 5-megapixel rear camera, 32GB of internal storage, NFC and 4G LTE connectivity, though Sprint’s LTE network has not yet launched. The Galaxy Nexus is not compatible with Sprint’s current 4G WiMAX network.

New York sues Sprint for $300 million over alleged tax fraud [updated]

Dan Graziano — Thu, 19 Apr 2012 15:40:37 +0000

New York on Thursday filed a lawsuit against Sprint Nextel Corp looking to collect more than $300 million, Reuters reported. The wireless company is accused of tax fraud for deliberately not collecting or paying more than $100 million in taxes over the past seven years. New York Attorney General Eric Schneiderman filed the complaint in the New York State Supreme Court on Thursday. The tax suit, which is the first filed under the state’s False Claims Act, could require Sprint to pay triple the amount it is accused of underpaying. Since 2002, New York state has required mobile phone companies to collect and pay sales taxes for their mobile services. Schneiderman claims Sprint has underpaid and submitted false records since 2005, however, in an alleged effort to undercut its competition and offer cheaper rate plans.

UPDATE: Sprint has issued a statement, which can be found after the break.

“This complaint is without merit and Sprint categorically denies the complaint’s allegations. We have collected and paid over to New York every penny of sales taxes on mobile wireless services that we believe our customers owe under New York state law. With this lawsuit, the Attorney General’s office is claiming New York consumers, who already pay some of the highest wireless taxes in the country, should pay even more. We intend to stand up for New York consumers’ rights and fight this suit.”

Read

AT&T’s 4G and T-Mobile’s 3G found to be nation’s fastest wireless services

Dan Graziano — Wed, 18 Apr 2012 00:35:50 +0000

The four major carriers in the United States — Verizon Wireless, AT&T, Sprint and T-Mobile — all advertise some form of 4G technology, whether it is LTE, WiMAX or HSPA+, and each company claims to have either the most reliable, biggest, fastest or best network. PCWorld put the carriers claims to test in its “2012 Mobile Speed Test” and found that AT&T’s 4G LTE service featured the fastest download speeds while Verizon’s 4G LTE network provided the fastest upload speeds. T-Mobile’s HSPA+ 21 network was the fastest 3G service and the carrier’s HSPA+ 42 service held its own with both AT&T’s and Verizon’s 4G networks, making T-Mobile a good choice for many wireless users who are looking for affordable plans. Sprint’s 3G service and WiMAX technology lagged behind the competition according to the report. The “real-world speed tests” were conducted in Atlanta, Boston, Chicago, Dallas, Denver, Las Vegas, Los Angeles, New Orleans, New York, San Francisco, San Jose, Seattle and Washington DC. PCWorld’s press release follows below.

AT&T Fastest 4G Service, T-Mobile Fastest in 3G, PCWorld Mobile Speed Tests Reveal
Sprint lags badly behind in both 3G and 4G speeds, 13-city testing shows.

San Francisco, April 17, 2012—Mobile internet service is a major monthly expense for most American consumers, and a very big business for U.S. wireless companies. The marketing machines of those companies are now in high gear, touting their services as the industry transitions from 3G service to the much faster 4G. Problem is, everybody’s service is “4G”, “most reliable”, “biggest”, “fastest” and “best,” if you believe all the names and claims flying about on TV, radio, print media and the Web.

That’s why PCWorld has once again hit the road to measure the real-world performance of the four major wireless services on America’s streets and in its coffee shops. During February and March of this year, PCWorld measured the speeds of the major U.S. carriers’ 3G and 4G wireless services from 130 locations in 13 major U.S. cities.

HIGHLIGHTS FROM THE STUDY

AT&T had the fastest download speeds of any 4G service, along with an HSPA+ service that’s very competitive with 3G services–a compelling service combination for AT&T dual-mode phones.

T-Mobile’s HSPA+ 21 service proved faster overall than comparable 3G services in our study, and the carrier’s high-end HSPA+ 42 service held its own with the 4G services of its larger competitors. Those services, and the array of flexible and affordable plans it offers, make T-Mobile a good choice for many wireless users.

Verizon has 4G service in many more locations than other providers, but in most localities the download speed of its 4G service doesn’t match AT&T’s (though its upload speeds are faster, more often than not). And Verizon’s 3G speeds have not improved much, especially when compared to the competition.

Sprint is a consistent laggard in the wireless speed races. The company appears to have virtually stopped developing its network while looking for a way to transition from its outdated WiMAX 4G technology to LTE.

“The big surprise in this year’s study is T-Mobile’s performance,” says PCWorld Senior Editor Mark Sullivan, who designed and managed the study. “By offering data speeds that are very competitive with AT&T and Verizon along with its affordable data plans, T-Mobile is proving why its proposed acquisition by AT&T last year would have been bad news for US consumers.”

“The other (rather sobering) surprise in this year’s data is Sprint’s poor performance, both in 3G and 4G service. The carrier’s speeds suggest that both the Sprint CDMA and WiMAX networks have seen very little investment and upgrade over the past year—in a mobile data market where the rule is ‘grow faster or parish.’”

While a majority of wireless consumers still use slower 3G devices today, most will transition to faster 4G devices over the next five years as carriers push them to upgrade to newer 4G devices when their contracts expire, Sullivan says. Meanwhile wireless companies will continue to increase their networks’ data transfer speeds to compete for new customers and retain old ones.

FASTEST 3G AND 4G SERVICES BY CITY:

Atlanta — 3G: T-Mobile; 4G: AT&T
Boston — 3G: T-Mobile; 4G: AT&T
Chicago — 3G: AT&T; 4G: AT&T
Dallas — 3G: AT&T; 4G: AT&T
Denver — 3G: T-Mobile; 4G: Verizon
Los Angeles — 3G: T-Mobile; 4G: AT&T
Las Vegas — 3G: T-Mobile; 4G: AT&T
New Orleans — 3G: T-Mobile; 4G: Verizon
New York — 3G: T-Mobile; 4G: AT&T
San Jose — 3G: T-Mobile; 4G: Verizon
San Francisco — 3G: T-Mobile; 4G: AT&T
Seattle — 3G: T-Mobile; 4G: Verizon
Washington DC — 3G: T-Mobile; 4G: AT&T

“Our annual speed study is an important part of what we do at PCWorld,” explains VP, Editorial Director, Steve Fox. “Many consumers look to us for an unbiased, independent, empirical assessment of the wireless technology and services being offered in the U.S. today.”

“It’s exciting to see the data speed wars heating up as the wireless providers move from 3G to 4G technology in their networks and devices,” Fox says. “We only hope that the competition eventually translates into better performance and better value for consumers.”

Our testing cities:Atlanta, Boston, Chicago, Dallas, Denver, Las Vegas, Los Angeles, New Orleans, New York, San Francisco, San Jose, Seattle and Washington DC

Wireless data traffic grew 123% in the U.S. last year

Dan Graziano — Tue, 17 Apr 2012 22:50:02 +0000

As sales of smartphones and tablets reach all time heights, consumers in the United States are streaming more movies, downloading more apps and viewing more websites on their wireless devices. According to a recent report from the CTIA, annual wireless data traffic in the U.S. grew 123% from 388 billion megabytes in 2010 to 866.7 billion megabytes in 2011. The survey also found that the number of active smartphones in the U.S. increased by 43% to 111.5 million units in 2011 compared with 78.2 million in 2010. “As the President, bipartisan members of Congress, FCC Chairman and Commissioners and other policymakers have repeatedly advocated, the U.S. wireless industry must have access to more spectrum so we can continue to improve our nation’s economy and meet our consumers’ demands,” Steve Largent, president and CEO of CTIA, said in a statement. In order to handle the massive demand for wireless data, U.S. mobile carriers are continuing to invest in their networks through 4G upgrades and increased coverage and capacity with more cell sites. Read on for CTIA’s press release.

CTIA-The Wireless Association® Semi-Annual Survey Shows Significant Demand by Americans for Wireless Broadband

Americans used more than 123 percent more wireless data traffic in 2011 than 2010

WASHINGTON, D.C. – The amount of wireless data transmitted by Americans continues to increase at an impressive rate, as the CTIA-The Wireless Association® semi-annual survey revealed, which was released today. The annual U.S. wireless data traffic grew 123 percent from 2010 (388 billion megabytes) to 2011 (866.7 billion megabytes). According to the survey, there was a 43 percent increase in the number of active smartphones and wireless-enabled PDAs in 2011 (111.5 million) compared with 2010 (78.2 million). With almost 95 percent of these devices capable of transmitting wireless data, Americans’ voracious appetite for anywhere and anytime mobile access is why the wireless industry needs more spectrum.

To put the wireless data traffic of 2010 compared with 2011 into perspective, if you were walking and listening to five songs per mile and each song lasted for four minutes:

In 2010, you would walk 77,601,961,033 miles, or the equivalent of 3,116,419 times around the world for 2,952,890 years and listen to 97 billion songs.

In 2011, you would walk 173,364,056,929 miles, or the equivalent of 6,962,132 times around the world for 6,596,806 years and listen to 216.7 billion songs.

In order to handle Americans’ demand for wireless data, mobile providers continued to make significant investments in their infrastructure, from upgrading networks from 3G to 4G to increasing the number of cell sites to improve coverage and capacity. In 2011, they reported $25.3 billion in capital expenditures, which was up 2 percent from 2010. Since 2001, wireless providers invested $246 billion in capital expenditures, so they can meet consumers’ demands for wireless access anytime and anywhere. This number does not include the billions that wireless companies paid the U.S. government to license spectrum. Also important to meeting demand was the 2009 FCC shot clock ruling that required local governments to make decisions on tower siting proposals within specific timeframes. 2011 was the largest annual increase of operational cell sites with 283,385 at year-end, which was 30,299 more than 2010.

The 12-month survey results for 2011 are:

Wireless subscriber connections: 331.6 million (104.6 percent penetration); Dec. 2010: 311 million (7 percent increase).

Wireless network data traffic: 866.7 billion megabytes; Dec. 2010: 388 billion megabytes (123 percent increase).

Active smartphones and wireless-enabled PDAs: 111.5 million; Dec. 2010: 78.2 million (43 percent increase).

Number of active data-capable devices: 295.1 million; Dec. 2010: 270.5 million (9 percent increase).

Wireless-enabled tablets, laptops and modems: 20.2 million; Dec. 2010: 13.6 million (49 percent increase).

Minutes of Use (MOU): 2.296 trillion; Dec. 2010: 2.241 trillion (2 percent increase)

SMS sent and received: 2.304 trillion; Dec. 2010: 2.052 trillion (12 percent increase).

MMS sent and received: 52.8 billion; Dec. 2010: 56.6 billion.

Average local monthly wireless bill (includes voice and data service): $47.00; Dec. 2010: $47.21.

“Americans’ love for mobile products and services continue to grow. Our survey shows yet again that we are choosing to have more than one wireless device, including smartphones, tablets and e-readers, which is why the wireless penetration rate is almost 105 percent. Yet as the President, bipartisan members of Congress, FCC Chairman and Commissioners and other policymakers have repeatedly advocated, the U.S. wireless industry must have access to more spectrum so we can continue to improve our nation’s economy and meet our consumers’ demands. While the spectrum identified in the Middle Class Tax Relief and Job Creation was a great start, there is much more work to be done,” said Steve Largent, President and CEO of CTIA. “We look forward to working with all of the interested parties to quickly bring more spectrum to auction so our members may purchase it, continue to invest and create jobs and ensure wireless U.S. consumers remain enjoying the world’s best wireless products and services.”

Sprint Galaxy Nexus pre-orders begin today, available April 22nd for $199.99

Dan Graziano — Mon, 16 Apr 2012 14:50:52 +0000

Sprint on Monday announced the availability of the Samsung Galaxy Nexus. The Android 4.0 handset can be pre-ordered today and will be available beginning Sunday, April 22nd for $199.99 with a new two-year agreement. “Galaxy Nexus is a beautifully designed smartphone that combines the Pure Google experience with the speed of Sprint’s upcoming 4G LTE network,” said Fared Adib, Sprint’s vice president of product development. “It represents the cutting-edge features and applications that customers expect and pairs perfectly with Sprint’s unlimited data plans to let our customers enjoy their wireless experience without worrying about overage charges or throttling.” As an extra bonus, Sprint is offering customers who register a Google Wallet account within a week of activating their devices a $10 instant credit, along with an additional $40 of credit to be delivered within three weeks. Customers who pre-order the Galaxy Nexus will begin receiving the device as early as Friday, April 20th. Read on for Sprint’s press release.

Sprint Continues 4G LTE Momentum with Launch of Galaxy Nexus by Samsung on April 22 for $199.99

Pre-order begins today at www.sprint.com/nexus

OVERLAND PARK, Kan. – April 16, 2012 – Sprint (NYSE:S) , the only national wireless carrier offering truly unlimited data for all phones while on the Sprint network1, continues its 4G LTE launch momentum with the launch of Galaxy Nexus by Samsung, its first Android™ 4.0, Ice Cream Sandwich, smartphone with 4G LTE capability. It boasts a Pure Google experience, 1.2GHz dual-core processor, a 4.65-inch HD Super AMOLED™ contour display and dual cameras enabling video chat.

Galaxy Nexus will be available in Sprint Stores, Sprint Business Sales, Telesales (1-800-SPRINT1) and Web Sales (www.sprint.com) beginning on Sunday, April 22, for $199.99 (excluding taxes) with a new line of service or eligible upgrade and two-year service agreement. Pre-order begins today at www.sprint.com/nexus. Customers who pre-order Galaxy Nexus will begin receiving their devices as early as Friday, April 20 – two days before the device goes on sale – while supplies last.

Galaxy Nexus on Sprint also features Google Wallet™, turning the smartphone into a wallet using Near Field Communication (NFC) to make safe purchases at more than 100,000 participating retailers. As an extra bonus, Sprint customers who activate a Google Wallet account within a week of activation of their Galaxy Nexus will receive a $10 instant credit on their Google Wallet account and an additional $40 credit within three weeks2.

“Galaxy Nexus is a beautifully designed smartphone that combines the Pure Google experience with the speed of Sprint’s upcoming 4G LTE network,” said Fared Adib, vice president – Product Development, Sprint. “It represents the cutting-edge features and applications that customers expect and pairs perfectly with Sprint’s unlimited data plans to let our customers enjoy their wireless experience without worrying about overage charges or throttling.”

Manufactured by Samsung Telecommunications America (Samsung Mobile), a leading global mobile phone provider and the No. 1 mobile phone provider in the United States3, Galaxy Nexus pairs the beauty of Samsung hardware with a Pure Google experience. It is built on Android, 4.0, Ice Cream Sandwich, which brings an entirely new look and feel to Android. Simple layouts with subtle animations and delightful flourishes make everything feel alive. The home screen, web browser, email and everything in between have been rethought and redesigned to make Android simple, beautiful and beyond smart.

Galaxy Nexus has a full-featured 5-megapixel camera with automatic focus and 1080p video capture, top-notch, low-light performance and zero shutter lag. Open it right from the lock screen and fire off a photo instantly. Snapping several photos is quicker than the blink of an eye, and single-motion panoramic mode lets the user take beautiful panorama pictures with Galaxy Nexus.

Additional key features include:
• Face Unlock: Galaxy Nexus introduces a new, fun way to unlock the phone – with a smile. State-of-the-art facial recognition technology lets the user switch on their phone and look at it to get past the lock screen – no passwords to remember, nothing to type or swipe.
• Android Beam™: Share contacts, web pages, YouTube videos, directions and apps – just by touching two NFC-enabled Android phones back to back – tap to beam what’s on the phone to a friend.
• Google+™ Hangouts: Video chat with a group of up to 10 friends using the 1.3-megapixel front-facing camera, all on the go.
• A 1.2GHz dual-core processor and a brilliant 4.65-inch HD Super AMOLED contour display with 1280×720 resolution.
• Google Play™: With more than 500,000 apps, millions of songs and books and thousands of movies, Google Play has something for everyone.
• Google Wallet: Turn the smartphone into a wallet using NFC to make safe, secure purchases at more than 100,000 participating retailers.
• Google Voice™ makes people’s lives easier by providing one phone number to use for the rest of their life. Easily manage up to six devices with one Sprint phone number, use intelligent call routing and advanced call controls like call screening, blocking and recording, and online management of SMS, voicemail and call logs at www.google.com/voice.

Galaxy Nexus customers can enjoy an unlimited data experience with Sprint Everything Data plans. Sprint’s Everything Data plan with Any Mobile, AnytimeSM includes unlimited web, texting and calling to and from any mobile in America while on the Sprint Network, starting at just $79.99 per month for smartphones – a savings of $40 per month versus Verizon’s comparable plan with unlimited talk, text and 2GB web, or $10 per month savings versus Verizon’s 450-minute plan with unlimited text and 2GB web.

Sprint recently announced Atlanta, Baltimore, Dallas, Houston, Kansas City and San Antonio are expected to have 4G LTE and enhanced 3G service in mid-year 2012. The anticipated launch of these large metropolitan areas demonstrates the continued commitment by Sprint to invest in its network through Network Vision. Sprint customers in these areas will soon enjoy ultra-fast data speeds and improved 3G voice quality. For the most up-to-date details on Sprint’s 4G LTE rollout, please visit www.sprint.com/4GLTE.

Sprint to launch Samsung’s Galaxy Nexus on April 22nd?

Jonathan S. Geller — Thu, 12 Apr 2012 15:00:07 +0000

Samsung’s Galaxy Nexus has been available around the world for quite some time after officially making it’s debut on Verizon Wireless in December. Sprint’s version of the handset, which supports the company’s brand new LTE network, is currently slated for an April 22nd release according to one of our sources, which is in line with earlier rumors. Stores should be receiving merchandising materials shortly, and sales are set to start soon after. Whether you’ll actually be able to get an LTE signal, however, depends on if you’re a 1%-er — Sprint’s LTE network has gone live in a few regions during testing, but isn’t set to go live in launch markets until June. Sprint also plans to launch the LG Viper 4G LTE on April 22nd.

TABLE NO. 1 Selected Consolidated Financial Data (Unaudited) (dollars in millions, except per share data)
	Quarter To Date
Financial Data	March 31, 2012			March 31, 2011			% ∆

Net operating revenues	$	8,734		$	8,313		5	%
Operating (loss) income	$	(255	)	$	259		NM
Adjusted OIBDA*	$	1,213		$	1,514		(20	) %
Adjusted OIBDA margin*		15.2	%		19.9	%
Net loss⁽¹⁾	$	(863	)	$	(439	)	(97	) %
Diluted net loss per common share⁽¹⁾	$	(0.29	)	$	(0.15	)	(93	) %

Capital expenditures ⁽²⁾	$	800		$	555		44	%
Net cash provided by operating activities	$	978		$	919		6	%
Free Cash Flow*	$	138		$	178		(22	) %


TABLE NO. 2 Wireless Operating Statistics (Unaudited)
	Quarter To Date
	March 31, 2012			December 31, 2011			March 31, 2011

Net Additions (Losses) (in thousands)
Sprint platform:
Postpaid^(a)		263			539			253
Prepaid^(b)		870			899			1,406
Wholesale and affiliate		785			954			389
Total Sprint platform		1,918			2,392			2,048
Nextel platform:
Postpaid^(a)		(455	)		(378	)		(367	)
Prepaid^(b)		(381	)		(392	)		(560	)
Total Nextel platform		(836	)		(770	)		(927	)

Total retail postpaid net (losses) additions		(192	)		161			(114	)
Total retail prepaid net additions		489			507			846
Total wholesale and affiliate net additions		785			954			389
Total Wireless Net Additions		1,082			1,622			1,121

End of Period Subscribers (in thousands)
Sprint platform:
Postpaid^(a)		28,992			28,729			27,699
Prepaid^(b)		13,698			12,828			9,941
Wholesale and affiliate		8,003			7,218			4,910
Total Sprint platform		50,693			48,775			42,550
Nextel platform:
Postpaid^(a)		3,830			4,285			5,299
Prepaid^(b)		1,580			1,961			3,182
Total Nextel platform		5,410			6,246			8,481

Total retail postpaid end of period subscribers		32,822			33,014			32,998
Total retail prepaid end of period subscribers		15,278			14,789			13,123
Total wholesale and affiliate end of period subscribers		8,003			7,218			4,910
Total End of Period Subscribers		56,103			55,021			51,031

Supplemental Data – Connected Devices
End of Period Subscribers (in thousands)
Retail postpaid		791			783			715
Wholesale and affiliate		2,217			2,077			1,883
Total		3,008			2,860			2,598

Churn
Sprint platform:
Postpaid		2.00	%		1.99	%		1.78	%
Prepaid		2.92	%		3.07	%		3.41	%
Nextel platform:
Postpaid		2.09	%		1.89	%		1.95	%
Prepaid		8.73	%		7.18	%		6.94	%

Total retail postpaid churn		2.01	%		1.98	%		1.81	%
Total retail prepaid churn		3.61	%		3.68	%		4.36	%

ARPU ^(c)
Sprint platform:
Postpaid	$	62.55		$	61.22		$	58.52
Prepaid	$	25.64		$	25.16		$	25.76
Nextel platform:
Postpaid	$	40.94		$	41.91		$	44.35
Prepaid	$	35.68		$	34.91		$	35.46

Total retail postpaid ARPU	$	59.88		$	58.59		$	56.17
Total retail prepaid ARPU	$	26.82		$	26.62		$	28.39

Postpaid Nextel Recapture Rate ^(d)		46	%		39	%		27	%


TABLE NO. 3 Selected Wireless Financial Data (Unaudited) (dollars in millions)
	Quarter To Date
Financial Data	March 31, 2012			March 31, 2011			% ∆

Net operating revenues	$	7,950		$	7,413		7	%
Operating (loss) income	$	(331	)	$	140		NM
Adjusted OIBDA*	$	1,052		$	1,283		(18	) %
Adjusted OIBDA margin*		14.6	%		19.1	%

Capital expenditures ⁽²⁾	$	710		$	449		58	%


TABLE NO. 4 Selected Wireline Financial Data (Unaudited) (dollars in millions)
	Quarter To Date
Financial Data	March 31, 2012			March 31, 2011			% ∆

Net operating revenues	$	998		$	1,120		(11	) %
Operating income	$	78		$	119		(35	) %
Adjusted OIBDA*	$	161		$	228		(29	) %
Adjusted OIBDA margin*		16.1	%		20.4	%

Capital expenditures ⁽²⁾	$	45		$	53		(15	) %


Sprint Nextel Corporation CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Millions, except per Share Data)
TABLE NO. 5
	Quarter To Date
	March 31, 2012			December 31, 2011			March 31, 2011

Net Operating Revenues	$	8,734		$	8,722		$	8,313
Net Operating Expenses
Cost of services		2,787			2,788			2,584
Cost of products		2,298			2,631			1,812
Selling, general and administrative		2,436			2,461			2,403
Depreciation		1,590			1,098			1,122
Amortization		76			76			133
Other, net		(198	)		106			-
Total net operating expenses		8,989			9,160			8,054
Operating (Loss) Income		(255	)		(438	)		259
Interest expense		(298	)		(287	)		(249	)
Equity in losses of unconsolidated investments and other, net ⁽³⁾		(273	)		(472	)		(412	)
Loss before Income Taxes		(826	)		(1,197	)		(402	)
Income tax expense		(37	)		(106	)		(37	)
Net Loss⁽¹⁾	$	(863	)	$	(1,303	)	$	(439	)

Basic and Diluted Net Loss Per Common Share⁽¹⁾	$	(0.29	)	$	(0.43	)	$	(0.15	)

Weighted Average Common Shares outstanding		2,999			2,997			2,992

Effective Tax Rate		-4.5	%		-8.9	%		-9.2	%


*NON-GAAP RECONCILIATION – NET LOSS TO ADJUSTED OIBDA (Unaudited)** (Millions)

TABLE NO. 6
	Quarter To Date
	March 31, 2012			December 31, 2011			March 31, 2011

Net Loss⁽¹⁾	$	(863	)	$	(1,303	)	$	(439	)
Income tax expense		(37	)		(106	)		(37	)
Loss before Income Taxes		(826	)		(1,197	)		(402	)
Equity in losses of unconsolidated investments and other, net ⁽³⁾		273			472			412
Interest expense		298			287			249
Operating (Loss) Income		(255	)		(438	)		259
Depreciation and amortization		1,666			1,174			1,255
OIBDA*		1,411			736			1,514
Severance and exit costs ⁽⁴⁾		-			28			-
Gains from asset dispositions and exchanges⁽⁵⁾		(29	)		-			-
Asset impairments and abandonments ⁽⁶⁾		18			78			-
Spectrum hosting contract termination, net ⁽⁷⁾		(170	)		-			-
Access costs⁽⁸⁾		(17	)		-			-
Adjusted OIBDA*		1,213			842			1,514
Capital expenditures ⁽²⁾		800			900			555
*Adjusted OIBDA less Capex**	$	413		$	(58	)	$	959

Adjusted OIBDA Margin*		15.2	%		10.8	%		19.9	%

Selected item:
Deferred tax asset valuation allowance	$	348		$	569		$	196


Sprint Nextel Corporation WIRELESS STATEMENTS OF OPERATIONS (Unaudited) (Millions)
TABLE NO. 7
	Quarter To Date
	March 31, 2012			December 31, 2011			March 31, 2011
Net Operating Revenues
Service revenue
Sprint platform:
Postpaid ^(a)	$	5,408		$	5,217		$	4,842
Prepaid ^(b)		1,016			929			712
Wholesale, affiliate and other		103			74			69
Total Sprint platform		6,527			6,220			5,623
Nextel platform:
Postpaid ^(a)		500			563			729
Prepaid ^(b)		188			227			366
Total Nextel platform		688			790			1,095

Equipment revenue		735			910			695
Total net operating revenues		7,950			7,920			7,413

Net Operating Expenses
Cost of services		2,289			2,291			2,047
Cost of products		2,298			2,631			1,812
Selling, general and administrative		2,311			2,330			2,271
Depreciation		1,488			988			1,012
Amortization		76			82			131
Other, net		(181	)		98			-
Total net operating expenses		8,281			8,420			7,273
Operating (Loss) Income	$	(331	)	$	(500	)	$	140

Supplemental Revenue Data
Total retail service revenue	$	7,112		$	6,936		$	6,649
Total service revenue	$	7,215		$	7,010		$	6,718

^(a) Postpaid subscribers on the Sprint platform are defined as retail postpaid subscribers on the CDMA network, including subscribers with PowerSource devices, and those utilizing WiMax technology. Postpaid subscribers on the Nextel platform are defined as retail postpaid subscribers on the iDEN network.
^(b) Prepaid subscribers on the Sprint platform are defined as retail prepaid subscribers who utilize CDMA technology via our multi-brand offerings. Prepaid subscribers on the Nextel platform are defined as retail prepaid subscribers who utilize iDEN technology via our multi-brand offerings.


NON-GAAP RECONCILIATION	Quarter To Date
	March 31, 2012			December 31, 2011			March 31, 2011

Operating (Loss) Income	$	(331	)	$	(500	)	$	140
Severance and exit costs ⁽⁴⁾		-			25			-
Gains from asset dispositions and exchanges⁽⁵⁾		(29	)		-			-
Asset impairments and abandonments ⁽⁶⁾		18			73			-
Spectrum hosting contract termination, net ⁽⁷⁾		(170	)		-			-
Depreciation		1,488			988			1,012
Amortization		76			82			131
Adjusted OIBDA*		1,052			668			1,283
Capital expenditures ⁽²⁾		710			774			449
*Adjusted OIBDA less Capex**	$	342		$	(106	)	$	834

Adjusted OIBDA Margin*		14.6	%		9.5	%		19.1	%


Sprint Nextel Corporation WIRELINE STATEMENTS OF OPERATIONS (Unaudited) (Millions)
TABLE NO. 8
	Quarter To Date
	March 31, 2012			December 31, 2011			March 31, 2011
Net Operating Revenues
Voice	$	417		$	475		$	486
Data		108			103			116
Internet		453			459			497
Other		20			17			21
Total net operating revenues		998			1,054			1,120

Net Operating Expenses
Costs of services and products		716			748			759
Selling, general and administrative		121			128			133
Depreciation		100			109			109
Other, net		(17	)		9			-
Total net operating expenses		920			994			1,001
Operating Income	$	78		$	60		$	119



NON-GAAP RECONCILIATION	Quarter To Date
	March 31, 2012			December 31, 2011			March 31, 2011
Operating Income	$	78		$	60		$	119
Severance and exit costs ⁽⁴⁾		-			3			-
Asset impairments and abandonments ⁽⁶⁾		-			6			-
Access costs⁽⁸⁾		(17	)		-			-
Depreciation		100			109			109
Adjusted OIBDA*		161			178			228
Capital expenditures ⁽²⁾		45			34			53
*Adjusted OIBDA less Capex**	$	116		$	144		$	175

Adjusted OIBDA Margin*		16.1	%		16.9	%		20.4	%


Sprint Nextel Corporation CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Unaudited) (Millions)
TABLE NO. 9
	Quarter Ended
	March 31, 2012			December 31, 2011			March 31, 2011
Operating Activities
Net loss	$	(863	)	$	(1,303	)	$	(439	)
Asset impairments		18			78			-
Depreciation and amortization		1,666			1,174			1,255
Provision for losses on accounts receivable		136			189			73
Share-based compensation expense		17			22			18
Deferred income taxes		32			117			27
Equity in losses of unconsolidated investments and other, net ⁽³⁾		273			472			412
Gains from asset dispositions and exchanges		(29	)		-			-
Contribution to pension plan		(92	)		(12	)		(100	)
Spectrum hosting contract termination, net⁽⁷⁾		(170	)		-			-
Other working capital changes, net		26			640			(369	)
Other, net		(36	)		(288	)		42
Net cash provided by operating activities		978			1,089			919

Investing Activities
Capital expenditures ⁽²⁾		(783	)		(909	)		(644	)
Expenditures relating to FCC licenses		(56	)		(59	)		(74	)
Reimbursements relating to FCC licenses ⁽⁹⁾		-			135			-
Change in short-term investments, net		(327	)		90			(40	)
Investment in Clearwire		(128	)		(331	)		-
Other, net		(1	)		1			(23	)
Net cash used in investing activities		(1,295	)		(1,073	)		(781	)

Financing Activities
Proceeds from debt and financings		2,000			4,000			-
Debt financing costs		(36	)		(83	)		(3	)
Repayments of debt and capital lease obligations		(2	)		(2,251	)		(1,652	)
Other, net		3			4			2
Net cash provided by (used in) financing activities		1,965			1,670			(1,653	)

Net Increase (Decrease) in Cash and Cash Equivalents		1,648			1,686			(1,515	)

Cash and Cash Equivalents, beginning of period		5,447			3,761			5,173

Cash and Cash Equivalents, end of period	$	7,095		$	5,447		$	3,658


*RECONCILIATION TO FREE CASH FLOW (NON-GAAP) (Unaudited)** (Millions)
TABLE NO. 10
	Quarter Ended
	March 31, 2012			December 31, 2011			March 31, 2011

Net Cash Provided by Operating Activities	$	978		$	1,089		$	919

Capital expenditures ⁽²⁾		(783	)		(909	)		(644	)
Expenditures relating to FCC licenses, net ⁽⁹⁾		(56	)		76			(74	)
Other investing activities, net		(1	)		1			(23	)
Free Cash Flow*		138			257			178

Debt financing costs		(36	)		(83	)		(3	)
Increase (decrease) in debt and other, net		1,998			1,749			(1,652	)
Investment in Clearwire		(128	)		(331	)		-
Other financing activities, net		3			4			2
Net Increase (Decrease) in Cash, Cash Equivalents and Short-Term Investments	$	1,975		$	1,596		$	(1,475	)


Sprint Nextel Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Millions)
TABLE NO. 11
	March 31, 2012			December 31, 2011
Assets
Current assets
Cash and cash equivalents	$	7,095		$	5,447
Short-term investments		477			150
Accounts and notes receivable, net		3,216			3,206
Device and accessory inventory		693			913
Deferred tax assets		115			130
Prepaid expenses and other current assets		628			491
Total current assets		12,224			10,337

Investments and other assets		2,453			2,609
Property, plant and equipment, net		13,500			14,009
Goodwill		359			359
FCC licenses and other		20,540			20,453
Definite-lived intangible assets, net		1,541			1,616

Total	$	50,617		$	49,383

Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	2,847		$	2,495
Accrued expenses and other current liabilities		3,584			3,996
Current portion of long-term debt, financing and capital lease obligations		8			8
Total current liabilities		6,439			6,499

Long-term debt, financing and capital lease obligations		22,260			20,266
Deferred tax liabilities		7,013			6,986
Other liabilities		4,314			4,205
Total liabilities		40,026			37,956

Shareholders’ equity
Common shares		5,995			5,992
Paid-in capital		46,723			46,716
Treasury shares, at cost		-			-
Accumulated deficit		(41,352	)		(40,489	)
Accumulated other comprehensive loss		(775	)		(792	)
Total shareholders’ equity		10,591			11,427

Total	$	50,617		$	49,383




*NET DEBT (NON-GAAP) (Unaudited)** (Millions)
TABLE NO. 12
	March 31, 2012			December 31, 2011
Total Debt	$	22,268		$	20,274
Less: Cash and cash equivalents		(7,095	)		(5,447	)
Less: Short-term investments		(477	)		(150	)
Net Debt*	$	14,696		$	14,677


Sprint Nextel Corporation SCHEDULE OF DEBT (Unaudited) (Millions)
TABLE NO. 13
			March 31, 2012

ISSUER	COUPON	MATURITY	PRINCIPAL
Sprint Nextel Corporation
Export Development Canada Facility (Tranche 2)	5.486%	12/15/2015	$	500
6% Senior Notes due 2016	6.000%	12/01/2016		2,000
9.125% Senior Notes due 2017	9.125%	03/01/2017		1,000
8.375% Senior Notes due 2017	8.375%	08/15/2017		1,300
9% Guaranteed Notes due 2018	9.000%	11/15/2018		3,000
7% Guaranteed Notes due 2020	7.000%	03/01/2020		1,000
11.5% Senior Notes due 2021	11.500%	11/15/2021		1,000
9.25% Debentures due 2022	9.250%	04/15/2022		200
Sprint Nextel Corporation				10,000

Sprint Capital Corporation
6.9% Senior Notes due 2019	6.900%	05/01/2019		1,729
6.875% Senior Notes due 2028	6.875%	11/15/2028		2,475
8.75% Senior Notes due 2032	8.750%	03/15/2032		2,000
Sprint Capital Corporation				6,204

Nextel Communications Inc.
6.875% Senior Serial Redeemable Notes due 2013	6.875%	10/31/2013		1,473
5.95% Senior Serial Redeemable Notes due 2014	5.950%	03/15/2014		1,170
7.375% Senior Serial Redeemable Notes due 2015	7.375%	08/01/2015		2,137
Nextel Communications Inc.				4,780

iPCS Inc.
First Lien Senior Secured Floating Rate Notes due 2013	2.672%	05/01/2013		300
Second Lien Senior Secured Floating Rate Notes due 2014	3.797%	05/01/2014		181
iPCS Inc.				481

Tower financing obligation	9.500%	01/15/2030		698

Capital lease obligations and other		2014 – 2022		69

TOTAL PRINCIPAL				22,232

Net premiums				36

TOTAL DEBT			$	22,268


Sprint Nextel Corporation RECONCILIATION OF RETAIL POSTPAID NET (LOSSES) ADDITIONS TO ADJUSTED SPRINT PLATFORM POSTPAID NET ADDITIONS (Thousands)
TABLE NO. 14
	Quarter To Date
	March 31, 2012		December 31, 2011		March 31, 2011

Retail postpaid net (losses) additions	(192	)	161		(114	)
Less: Nextel platform net losses	(455	)	(378	)	(367	)
Sprint platform net additions	263		539		253
Less adjustments:
Nextel PowerSource	(30	)	(33	)	(57	)
Helio			-		-
Adjusted Sprint platform net additions	293		572		310


Sprint Nextel Corporation NOTES TO THE FINANCIAL INFORMATION (Unaudited)

⁽¹⁾	Results include pre-tax, non-cash equity in losses of unconsolidated investments and other, net of $273 million ($.09 per share), $472 million ($.16 per share) and $412 million ($.14 per share) in the first quarter of 2012 and the fourth and first quarters of 2011, respectively.
⁽²⁾	Capital expenditures is an accrual based amount that includes the changes in unpaid capital expenditures and excludes capitalized interest. Cash paid for capital expenditures for the first quarter 2012 and fourth quarter 2011, respectively, includes $115 million and $99 million of total capitalized interest and can be found in the condensed consolidated cash flow information on Table No. 9 and the reconciliation to Free Cash Flow* on Table No. 10.
⁽³⁾	The fourth quarter 2011 includes a non-cash impairment of $135 million to reflect a reduction of our investment in Clearwire to its estimated fair value, and a dilution loss of approximately $27 million associated with the fourth quarter reduction of Sprint’s economic interest from 53.5% to 51.5% as a result of Clearwire’s fourth quarter 2011 equity offering.
⁽⁴⁾	Severance and exit costs are primarily related to work force reductions, lease termination charges, and organizational realignment initiatives.
⁽⁵⁾	For the first quarter 2012, gains from asset dispositions and exchanges are primarily due to spectrum exchange transactions.
⁽⁶⁾	For the first quarter 2012, asset impairments and abandonments relate to a change in our backhaul architecture in connection to our Network Vision design from microwave to a more cost effective fiber backhaul.
⁽⁷⁾	On March 16, 2012, we elected to terminate the arrangement with LightSquared LP and LightSquared, Inc. (LightSquared). As we have no future service obligations with respect to the arrangement with LightSquared, we recognized $236 million of the advanced payments as other operating income in the first quarter of 2012. As a result of the termination of the hosting agreement, we impaired capitalized costs specific to LightSquared’s 1.6 GHz spectrum that the Company no longer intends to deploy which totaled $66 million.
⁽⁸⁾	Favorable developments during the first quarter of 2012 relating to disagreements with local exchange carriers resulted in a reduction in expected access costs of $17 million.
⁽⁹⁾	$135 million in reimbursements were received in the fourth quarter of 2011 from the mobile satellite service (MSS) entrants for their pro rata share of our costs of clearing a portion of the 1.9 GHz spectrum related to spectrum reconfiguration under FCC’s Report and Order.