Horror for RUSH glory for Strong&Me - SprintNextel posts larger loss!!!
LIBERATOR
down!!! Bankruptcy looms for SprintNextel - I applied for a job there
and by illegal use of surveillance RUSH stopped me from getting the
job, by buying the company (Nextel) using Sprint. So Dick in response
bankrupted them. Now RUSH will rescue SprintNextel with a German titan
they own, DeutschTelekom.
http://www.deutschetelekom.com/dtag/cms/content/dt/en/6908 - but that
will setup the fall for DeutschTelekom.
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http://www.mobile88.com/news/read.asp?file=/2009/5/6/20090505213647&sec=International&phone=Sprint_Nextel_revenue_fall_
05 May 2009 - Sprint Nextel's net loss widened to US$594 million for
first-quarter this year and net revenues declined 12 percent as the US
mobile operator continued to lose customers to rivals. The net loss
widened 18 percent from US$505 million in the year earlier quarter,
while revenue dropped from US$9.3 billion to US$8.2 billion. The
company also included US$327 million of severance and exit costs,
primarily related to the reduction in work force announced in January
2009. Total mobile customers declined by 182,000 to 49.1 million by
the end of the quarter, although this was a significant improvement
from the 1.3 million customers lost in the previous quarter. "We
achieved the largest sequential improvement in overall gross adds and
net adds in Sprint Nextel history," said Sprint Nextel CEO Dan Hesse.
However, while the operator made gains in prepaid subscribers
(including via its Boost Mobile subsidiary) and in wholesale, this
disguised a 1.25 million decline in postpaid customers, which are
deemed more lucrative.
Meanwhile, the Wall Street Journal reported earlier that Sprint is in
final negotiations regarding the outsourcing of the management of its
mobile network to Ericsson, the Swedish equipment supplier. Citing
people familiar with the matter, the report says that the deal could
reduce Sprint's network costs by about 20 percent and could be worth
as much as US$2 billion to Ericsson over the next several years. It
will also see the transfer of around 5,000 to 7,000 US Sprint
employees to Ericsson. The deal could involve some layoffs, the report
says, but it is hoped Ericsson will keep on as many people as possible
as it looks to target other US mobile operators with its network
outsourcing business. Neither Sprint nor Ericsson were prepared to
comment on the story. ♠ JC
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http://online.wsj.com/article/SB124143412508182949.html
By SARA SILVER and ROGER CHENG
Sprint Nextel Corp. posted a larger first-quarter loss as it booked
restructuring charges and continued to shed wireless customers.
Sprint lost 1.3 million long-term contract subscribers in the first
quarter, offsetting a surge in customers who don't sign contracts and
prepay for their wireless minutes. Many were attracted by the
company's Boost Mobile unlimited plan, which costs $50 a month.
Sprint in Talks to Outsource Network Chief Executive Dan Hesse said
business shutdowns and layoffs accounted for much of the contract-
subscriber losses, bringing the total number of such customers lost to
more than six million since the fall of 2007. Sprint ended the first
quarter with 49.1 million total customers.
"We are the most heavily reliant on business in terms of overall
revenue mix," Mr. Hesse said Monday on an investor call. "Our hope is
that as business led the economy down, it'll lead it up."
The third-largest provider of U.S. mobile-phone services posted a loss
of $594 million, or 21 cents a share, compared with a year-earlier
loss of $505 million, or 18 cents a share. The latest results include
$327 million in severance costs related to cutting 13% of the
company's work force, expected to save about $1.2 billion a year.
Revenue decreased 12% to $8.21 billion.
Sprint CEO Dan Hesse said adding customers to its Boost Mobile prepaid
service is similar to filling 'unsold seats on an airplane.'
On the prepaid side, Sprint added 674,000 customers, reversing a loss
of more than 300,000 customers in the fourth quarter. Sprint also
added 394,000 wholesale subscribers, representing devices -- such as
Amazon.com Inc.'s Kindle book reader -- that run on its network.
"This was the worst quarter ever in terms of postpaid loss, but the
best in terms of prepaid additions," said Chris King, analyst with
Stifel, Nicolaus & Co.
In an interview Monday, Mr. Hesse compared the Boost Mobile business
to filling "unsold seats on an airplane." Boost runs on its
underutilized iDEN network, with push-to-talk features that tend to
reduce defections to other carriers.
Boost customers tend to pay close to the full price of their phones
and then spend only $6 less a month for their service than Sprint's
average contract customer.
"You don't need to earn the same margin, since the upfront cost is
very low," said Mr. Hesse.
Boost's popularity actually strained the service's texting system,
leading to delays in delivering messages, a problem the company says
it has resolved.
Mr. Hesse said declines in customer numbers have freed up capacity on
Sprint's network, improving quality while it cuts spending on new
equipment. He said this quality plus improved customer service should
eventually stem the hemorrhaging of contract customers. Sprint saw its
postpaid turnover rise to 2.25% in the quarter, up from 2.16% in the
fourth quarter.
Sprint is also pinning its hopes on Palm Inc.'s Pre, a touchscreen
device it believes could rival Apple Inc.'s iPhone and is expected to
be released by the end of June, when it will likely compete against a
field of high-profile smart phones.
In the meantime, larger rivals AT&T Inc. and Verizon Wireless are
picking off the industry's most valuable customers. AT&T added 1.2
million customers, and Verizon Wireless signed up 1.3 million
customers in the period.