Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  
TRANSCRIPT SPONSOR
Wall Street Horizon Logo

Sprint Nextel Corp (NYSE:S)

Q1 2007 Earnings Call

May 2, 2007 8:00 am ET

Executives

Gary Forsee - CEO, President

Paul Seleh - CFO

Kurt Fawkes – IR

Analysts

Ric Prentiss - Raymond James

Phil Cusick - Bear Stearns

David Janazzo - Merrill Lynch

Simon Flannery - Morgan Stanley

Michael Rollins - Citigroup

Thomas Lee - JPMorgan

David Barden - Banc of America

Tim Horan - CIBC

Tom Sykes - Lehman Brothers

Walter Piecyk - Pali Research

Jason Armstrong - Goldman Sachs

Presentation

Operator

At this time, I would like to welcome everyone to the Sprint Nextel first quarter 2007 earnings call. (Operator Instructions) I will now turn the call over to Mr. Kurt Fawkes, Vice President of Investor Relations. Please go ahead, sir.

Kurt Fawkes

Good morning, everyone. Thanks for joining us. For the format of our call today, our CEO, Gary Forsee is going to kick off the discussion and he will be followed by Paul Saleh, our CFO, who will provide a detailed review of our first quarter results, and share his thoughts on the balance of the year. We're going to finish the call with a Q&A session.

On Slide 2, I want to point out that in our remarks this morning, we will be discussing forward-looking information which involves a number of risks and uncertainties that may cause actual results to differ materially from our forward-looking statements. We provide a detailed discussion of the various risk factors in our SEC filings and of course, strongly encourage you to thoroughly review our filings.

On Slide 3, we have our non-GAAP financial measures. Throughout our call we're going to be referring to several non-GAAP metrics. Reconciliations of our non-GAAP performance and liquidity measures to the appropriate GAAP measures for the first quarter can be found on the attachments to our earnings release and they are also at the end of today's presentation which is stored on our website at www.Sprint.com.

I want to also take this opportunity to give you a heads up that beginning in the second quarter we will be making some minor adjustments to our non-GAAP measure of churn, post- paid churn calculations. We're going to be adopting a new subscriber-based reporting tool. With this adoption, we will be making some changes and include broader account level matching and intra-platform transfers.

The effects of these changes at this point are estimated to be about a 10 to 20 basis point reduction in our reported churn going forward. There will be also a corresponding decrease in new activations with this change. There's no impact on reported net additions and of course there's no effect to the balance sheet or P&L. When we report our second quarter results, we will quantify the actual effects of these changes so you'll have an apples-to-apples comparison.

Turning to slide 4, I want to provide the normalizing EPS for the quarter. Sprint reported a loss from continuing operations in the first quarter of $211 million or $0.07 per share which compares with income of $164 million or $0.05 per share in the year-ago period. Special items in the first quarter totaled $192 million after-tax, that's $0.07 per share so EPS before the special items was breakeven for the quarter. Adjusted EPS before merger related amortization expense was $0.18 per share and that compares to $0.26 per share in the first quarter of 2006.

Now I'm going to turn the call over to Gary.

TRANSCRIPT SPONSOR

Wall Street Horizon Logo

Do you get frustrated during earnings season?

Have you had trades go south because of bad earnings dates?

We know what it's like. We’ve been there. We’re Wall Street Horizon and we work with some of the largest firms on Wall Street.

Founded by former Fidelity Investments executives, we understand the power of trading on good information and the pain and suffering of trading otherwise. We obsess about earnings and economic events calendars so you don’t have to. Accurate. On time. Guaranteed.

Let us help.

Get Smart

Get Wall Street Horizon.

View our Free 30-day trial for investment professionals

To sponsor a Seeking Alpha transcript click here.

Gary Forsee

Thanks, Kurt and good morning, everyone. As you are well aware in the second half of 2006, we began implementing a plan that included numerous initiatives that were targeted at returning the core wireless business to profitable long term growth. We have indicated that it would take time to improve our operating results and I want to report that we began to see improvement in several key areas in the quarter and we provided solid cash flows, although profitability was modestly behind our own schedule.

As you can expect, we have made and will continue to make the necessary adjustments to ensure we build a business that delivers the sustainable profitable growth that our assets are capable of producing.

Based on the reported industry results to-date, we estimate that we increased post-paid share in the first quarter. In the quarter we simplified our service offers, we came to market with competitive handset pricing and we increased our share of industry advertising. In addition to market share growth in the quarter we also improved the quality of our customer acquisitions. In the quarter post-paid gross additions included a 14% annual increase in prime credit subscribers. In addition, our churn rate was improving exiting March and continued to improve in April. We believe we remain on track to reach positive post-paid adds in the second quarter, with churn approaching 2% under our current operating and reporting rules.

We ended the quarter with 400,000 PowerSource devices in the customer base which was ahead of our plan. The majority of the PowerSource activity in the quarter were upgrades by valuable subscribers within the iDEN core base who extended their contracts for at least a year and in most cases, two years.

Besides executing the plan to improve cooperations, we continue to make progress in other important areas including the selection of Goodby, Silverstein & Partners as our new advertising agency. We are very pleased with the creative work presented during the selection process which continues to emphasize our compelling network capabilities and differentiated services. We expect to initiate the new advertising campaign beginning in the latter part of the second quarter.

Finally, while we are investing more to improve the business we have also continued to return free cash flow back to shareholders. In the first quarter through our buyback program and common dividends we returned nearly $375,000.

Turning to slide 7, I'd like to talk about specifics with regards to our core operations. In the quarter we experienced moderate post-paid churn improvement and steady gross add performance which drove a sequential improvement in our post-paid net add results. On a platform basis, CMA generated solid results in the quarter while lingering network perception issues continued to impact iDEN demand. We continue to believe that the recent and ongoing network improvements to the iDEN platform will support improving net subscriber performance in future periods.

We directed higher acquisition retention costs in the first quarter to improve market share and lower our churn. Our higher costs are also a function of a significantly higher mix of business and PDA subscribers that provide superior customer lifetime values. In addition, we had an increasing percent of EVDO devices, a strong ramp in the adoption of PowerSource phones and restocking of Boost inventories in iDEN markets where network improvements are enabling broader availability. Higher subsidies in the quarter also partially reflect a timing issue related to a vendor cost that has been eliminated beginning in the second quarter.

Our ARPU results in the quarter were in line with our expectations for both CDMA and iDEN. Average revenue per CDMA subscriber was down very slightly on a sequential basis while iDEN ARPU continues to reflect price actions and trends of the prior year. With the service pricing actions we took earlier this year and improved MRC mix in our recent gross adds and the benefit of seasonality, we expect ARPU to be relatively stable sequentially in the second quarter.

In the first quarter we continued to strengthen our network quality with nearly 1,400 new cell sites coming on air. Our significant investments in the networks are paying off with national blocked and dropped call rates at all-time best on both platforms. We believe our wireless network performance has come a long way in a very short period of time and we are backing up this claim in our advertising. More than 20% of our first quarter advertising dollars emphasize the superior performance of our network in major metropolitan areas across the country.

At the end of the first quarter we began an unlimited local calling trial under the Boost brand in four markets. This service utilizes the Sprint CDMA network. We are seeing some positive signs in early results and this business appears to be incremental to our post-paid wireless business. We will monitor this effort very closely to ensure we are producing the right overall economics and building value for our shareholders before we determine next steps beyond the trial period. I expect we will be able to provide some concrete results and thoughts on future direction for this service during our next earnings call. Boost unlimited subscriber metrics will be captured as direct prepaid results in future periods.

In the first quarter our wireline business achieved continued strong growth in IP, driven by MPLS sales and the cable Voice over IP telephony business. In total, IP revenues increased 28% year over year which handily beat the growth rates reported by our competitors. In the quarter, our cable telephony business reported double digit sequential revenue growth and a best-ever quarterly gain of more than 200,000 customers.

Finally, in the first quarter we substantially completed our previously announced action to reduce our headcount by approximately 5,000. With the bulk of the reductions occurring at the end of the quarter, we expect to realize significant cost savings during the second quarter and in addition we have numerous incremental actions underway and we made significant progress during the quarter integrating our billing, financial, and human resource support systems which are expected to contribute to improving results over the course of 2007.

Turning to slide 8, I'll update you on performance in the area of wireless data services. We reported data ARPU of $9.25 in the first quarter which is approximately 16% of our reported post-paid ARPU. Annualized wireless data revenue now exceeds $4.6 billion. On the CDMA platform, we continue to see very strong growth and we reported $12.25 of data ARPU, which is over 20% of CDMA total ARPU. The CDMA figures exceed our competitors, again by a healthy margin.

Overall data revenue growth is being propelled by an increasing share of EVDO customers, strong demand for messaging, PDAs as well as our-air card which are approaching 1 million post-paid subscribers. We have a very strong line-up of data devices including iconic handsets such as the music centric Samsung Upstage.

The Sprint Mobile broadband network using EVDO Rev A technology is the nation's fastest wireless broadband network. We have expanded this network to reach nearly 200 million pops of coverage. We will continue to expand the broadband capability to the vast majority of our network by the end of 2007 and we were on schedule to introduce high performance push-to-talk QChat on this network in early 2008 with field testing this summer of the service and devices.

We also continue to make solid progress toward the deployment of our WiMAX broadband network. We are encouraged by the development of the WiMAX ecosystem as we continue to see tier one device and infrastructure vendors initiating development plans and we are on track to launch WiMAX in Washington D.C. and Chicago in late 2007 and to be in more than 20 markets by the end of 2008.

Now turn to slide 9 for an update on our wireline business. For the quarter, wireline revenue was $1.6 billion. Consistent with recent trends, we reported declines in retail business and consumer voice services and in legacy data products, but these were offset by growth in affiliate voice revenues and the strong growth in IP which was up 8% sequentially.

During the quarter, the award of the networks universal contract received significant headlines. As you know, Sprint has had a longstanding relationship with many federal government agencies and we expect this relationship to continue for both wireless and wireline services. Our current book of business under FTS 2001 is less than 5% of wireline revenue and the profitability is immaterial to this segment. Our approach to networks reflected Sprint’s focus on IP services as we continue to deemphasize legacy voice and data services. This contract does not alter our short-term or long-term prospects for our wireline business.

Once again, adjusted wireline OIBDA of $205 million exceeded wireline capital requirements for the quarter. Adjusted OIBDA for the first quarter was partially impacted by an unfavorable call termination mix associated with our international prepaid card business which has since been corrected. That fact, along with lower headcount, will continue to improve wireline profitability in the second quarter.

I'm going to come back before we go to Q&A to provide closing comments, but first I'll hand it off to Paul so that you can get his perspective on our results.

Paul Saleh

Thank you, Gary and good morning, everyone. My remarks today will elaborate on the financial trends of the first quarter and the expected impact of our action plans for the second quarter and for the remainder of the year. I'll begin with a quick recap of our quarterly financial highlights on Slide 11. Total wireless subscribers on our network increased 10% year over year and 1% sequentially. For the quarter, we reported $10.1 billion in revenues, which is in line with a year ago and down 3% sequentially.

Wireless net operating revenues increased 2% versus one year ago to $8.7 billion due to acquisitions and strength in Boost Mobile and wholesale, which were partially offset by a decline in post-paid service and equipment revenues. Wireline revenues declined by approximately 4% from one year ago with voice and legacy data declines offsetting growth in IP services.

As expected, adjusted OIBDA was significantly lower on a sequential and year-over-year basis. Adjusted OIBDA of $2.6 billion reflects recent post-paid subscriber and ARPU trends, our incremental wireless investments for 2007 which began in the first quarter, higher net equipment subsidies, and a lower contribution from the wireline segments. I'll discuss the OIBDA trends in more detail on the following slide.

Adjusted EPS before amortization was $0.18 for the quarter. Capital investment of $1.6 billion in the quarter includes $1.4 billion for wireless with a majority of spending focused on coverage and capacity. In the quarter, we generated free cash flow of approximately $500 million as OIBDA exceeded capital investments in both wireline and wireless and we benefited from improvements in working capital.

Slide 12 illustrates the main factors for Sprint's sequential decline in adjusted OIBDA. About $200 million or approximately $0.04 per share can be attributed to lower service revenues mainly due to $1 sequential decline in post-paid ARPU, coupled with a smaller number of post-paid subscribers. As Gary described, we are delivering good subscriber growth and relatively stable ARPU's for the CDMA base, but this progress is being masked by challenging trends on the iDEN platform where voice declines are offsetting smaller gains in wireless data services.

Good growth in the number of Boost subscribers had a slight impact to sequential OIBDA while our growing wholesale business was incrementally positive for the quarter. Also impacting first quarter results are the operational investments which we described earlier this year, designed to improve our competitive position, lower post-paid subscriber churn, and solidify long term profitability. Our investments include expansion of our CDMA and EVDO network coverage, subsidies associated with PowerSource devices which leverage the best attributes of both networks, incremental media, expanded focus on network capabilities and on high speed data services, incentive for third party dealers which we launch in the fourth quarter, and enhancements to customer care.

In addition to these operating investments, we are beginning to incur operating costs associated with the WiMAX business. In total, investment spending diluted earnings by about $0.05 per share in the quarter.

The third category impacting quarterly profits is higher equipment subsidies. The first element of our higher handset subsidies is our effort to bring pricing in line with the marketplace so that we can compete for our fair share of high value customers. We also stepped up our efforts to retrain high value subscribers with more attractive equipment offerings. In the quarter, we sold a higher mix of PDA devices and EVDO handsets, which bodes well for future data sales opportunities but carries a higher per unit cost. A disproportionate mix of upgrades occurred on the CDMA side of the business consistent with our emphasis on selling data services. Another factor was the timing associated with certain handset price breaks and filling Boost distribution channels with a greater number of iDEN sells.

On Slide 13, we describe the expected benefit of our investments and action plans which we believe will become evident during the second quarter and we expect will carry on through the rest of the year. Service revenues are expected to benefit from post-paid subscriber growth, leveling of ARPU and a higher profit contribution from Boost Mobile. We expect to continue making investments in line with the plans that we shared with you during the second quarter and throughout the rest of the year.

We are already experiencing improved customer satisfaction and retention, with meaningful improvements to the voluntary and involuntary churn rate. We expect to continue to attract a strong share of prime growth subscribers and we expect to benefit from improved iDEN voice quality and expanding the coverage of our CDMA voice and data services. We've already experienced higher sales productivity in the third party channels during the first quarter and we expect that trend to continue.

As for the handset subsidies, we expect to maintain parity on equipment pricing as a means to achieve our customer acquisition and retention objectives, but overall subsidies are expected to moderate from first quarter levels.

Action we've taken to improve the subsidy rates include: being more selective on handset promotions, lowering the amount of equipment credit on acquisitions and upgrades, improving unit costs from our vendors, and realizing volume discounts as PowerSource and CDMA upgrade volumes increase, and reversing the timing issues associated with inventory flow at Boost.

In subsequent periods we also expect to increasingly benefit from our synergies and cost savings initiatives. Sprint headcount action was substantially completed in the first quarter and is expected to save the company approximately $100 million per quarter beginning in the second quarter. We also expect additional savings from our billing conversion and other IT projects. As of today, approximately one half of our post-paid subscribers are benefiting from the new billing platform and we expect to have all of our customers on the single billing platform by early fourth quarter.

We've already completed the deployment of a unified point-of-sale system to all of our retail locations and will upgrade our third party distribution channels over the next few months. Additionally, we are benefiting from the optimization of Human Resources and payroll systems. We're on track for a midsummer conversion of our financial systems too. We expect to benefit from greater productivity and efficiency in our care centers as we simplify the business and benefits from our upgrade system.

Finally, we continue to eliminate fixed costs by streamlining our distribution channels. In the quarter, we closed another 150 stores and kiosks and we entered into an agreement to sell another 130 kiosks to a third party that will continue to carry our handsets and services. Taking all of these factors into the mix, we expect our adjusted OIBDA will improve in the second quarter and in subsequent quarters, in line with our full year guidance.

On Slide 14, we reiterate our full year guidance. This includes consolidated revenues of $41 billion to $42 billion; consolidated adjusted OIBDA of $11 billion to $11.5 billion; capital expenditures of approximately $7.2 billion; and up to $800 million for non-network rebanding.

Finally on Slide 15, we have summarized other financing actions during the quarter. First, we raised approximately $750 million of new, low cost debt and we retired high coupons affiliate debt and reduced certain short-term obligations. We expect this refinancing to reduce our interest cost by about $17 million in '07. This action is consistent with our goal of strengthening our balance sheet, lowering our financing costs and enhancing our financial flexibility.

We purchase approximately 15 million shares of our stock during the quarter for approximately $300 million. Since last August, the company has repurchased $1.9 billion of its stock or approximately one third of the $6 billion authorized by the board. We remain committed to completing the buyback program but will vary the pace of our purchases from time to time. We also expect to initiate a 10b-5 program which will allow the company to buy back shares during future blackout periods. We ended the first quarter with $19.8 million in net debt. We're maintaining a solid investment grade profile, and ample financial flexibility with the net debt to annualized adjusted OIBDA ratio of 1.9 times.

Now I'll hand the call over to Gary for some closing comments before we go to question-and-answer.

Gary Forsee

Thank you, Paul. I wanted to update you on several topics that we felt would be of interest to you. First of all, at CTI Wireless 2007 Trade Show, we announced the Pivot brand for our cable joint venture wireless offer. This was an important milestone for the joint venture as it caps off a year of behind the scenes work to be sure that the systems could ensure that the customer will have the best possible service experience. We are currently in ten markets and expect to be in at least 40 markets by the end of the year with this joint offer with the cable companies.

Regarding executive talent, we have continued to solidify the overall officer team and that included bringing in four new senior executives in the past few months. In addition, through synergies and further operations and staff consolidations, we have reduced the overall number of officers and directors in the company by an additional 15% in the first quarter. The COO search is active and the focus remains on getting the very best candidate for this role.

Virgin Mobile USA has filed a registration statement for its initial public offering of stock, actually that occurred late yesterday afternoon. We expect to be a selling stockholder in this offering. As you're aware under SEC rules, we're now in a quiet period for this offering and cannot answer any further questions about that.

We are progressing through our rebanding obligations. As you may know, we are currently executing Phase II of rebanding in many markets which tends to be a much more complex activity than Phase I. In the first quarter it was a limited amount of spending on rebanding as the focus is on planning with public safety agencies, identify equipment needs and coordination of the timing of rebanding actions. We expect spending to increase in the second half of this year as Phase II activity accelerates.

In February, Sprint and the Public Safety Agency sent a letter to the FCC and transition administrator asking them to review certain Phase II timeliness. We'll continue to work with our public safety colleagues and the government regulators on rebanding solutions.

Finally, there are a number of stories concerning the Broadcom patent dispute with Qualcomm over EVDO handsets. At this time, the dispute has no impact on our business, yet we do continue to monitor the situation. As a significant purchaser of CDMA devices, we look forward to this being resolved and we expect our technology partners to ensure that it is.

So now I'll turn it back to Kurt for Q&A.

Kurt Fawkes

Thanks, Gary and in just a minute we'll go to your questions. I want to point out to folks that you may access an audio replay or webcast of our presentation at www.Sprint.com. Also wanted to mention that in our ebullience by not having pro forma results in the first quarter, I think we may have had an oversight in terms of some level of detail that you're normally accustomed to seeing on the wireless segment and we will get that same level of detail out to you as soon as the call is over here this morning.

With that, operator, if you could please instruct the participants. Thank you.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question will come from the line of Ric Prentiss with Raymond James.

Ric Prentiss - Raymond James

First on the PowerSource side, you mentioned 400,000 are on that now and that was ahead of your plans. Can you update us as far as where you think the combo or the PowerSource handsets will be by the end of the year and what you're seeing as far as data revenue take rates from those guys?

Gary Forsee

PowerSource phones really are the manifestation of the merger with push-to-talk coming from iDEN and voice and data coming from CDMA. We will have our first EVDO handsets in the June timeframe and so the 1XRTT devices that are out there now, with we are seeing a data pick up on that but we would expect obviously with EVDO devices in the second quarter for that to continue to accelerate. We had originally set in motion a 2 million to 3 million handset range for this year and we're tracking toward that as we sit here today.

Ric Prentiss - Raymond James

Great. On the other data side, on CDMA, obviously $12 in a quarter is pretty impressive on the CDMA data side. What are people spending that on? Is it still mostly 1X? Has DO been helping that? Any change maybe on what's going on with the downloads?

Gary Forsee

Well, we continue to add to our portfolio of data services and that runs the gamut from air cards, which we commented on, are continuing to be a very important uptake for our business customers and for consumers. Music downloads have hit over 15 million now. We obviously, with the Upstage device and with Music Store have continued to stake out our lead in that category. Messaging obviously continues to be an important application which drives revenue and we made comments about that overall.

I think we still have growth opportunity in this category that further supports our investments that we're making in our data networks so that when you look at penetration of those customers on a plan, we have a lot of opportunity to activate customers that have data enabled devices, but yet are either casual users or not yet on a full service plan. We'll continue to press that issue because we think that clearly is a growth opportunity.

As you already indicated with iDEN, we have the opportunity with PowerSource and in the future with QChat to really increase that ARPU which has been below $5 on the iDEN platform.

Operator

Your next question comes from Phil Cusick - Bear Stearns.

Phil Cusick - Bear Stearns

As we think about adding subscribers in the second quarter, you mentioned that churn should come down on a previously reported basis to around 2%. I would think that, just given the gross add run rate we've been at, should get us to about a positive net add number. But should we look for you guys to grow gross adds as well in the second quarter or on a, call it on a year to year basis because it's usually a tighter quarter for gross adds because of new handsets and things like that.

Also, if you could walk through again the cost reductions through the quarter from 1Q to 2Q. it seems like a $100 million from the layoffs but we talked about billing system changes and there was also a vendor cost elimination, if you could give some information there, that would be helpful. Thanks.

Gary Forsee

Let me take a shot at the trajectory of adds and maybe I'll back up a little bit to be sure that it's clear what we undertook in the first quarter. From my perspective, there were several key priorities. Reinvigorating the third-party channels was very important in regards to the iDEN issues that we had last year, so that was a very important activity to undertake; ensuring that PowerSource was deployed and activated in all of our channels was a very significant investment that we made and be sure that differentiation became something that was very important for us in the marketplace.

We wanted to be sure that we were competitive on handset pricing and on upgrades so again, that required investment to do that. Finally, we wanted to be sure that we made very good progress on churn and that ran the gamut from customer care to be sure that we protected our best customers to upgrades.

Those were key priorities. With that, we were able to maintain gross add momentum in the quarter and effect churn modestly in the quarter and that obviously sets up a more significant improvement in churn in the second quarter; less so around are we going to expect gross adds to step up in order to hit that churn number, it is more a factor of improvement in churn both -- voluntary and involuntary -- across both platforms.

We've given you a lot of commentary about the distinction between CDMA and iDEN and with the iDEN network performance and some of the issues that we have with Nextel Partners and improvements in the iDEN network, we would expect those trends to continue to improve, thus the staking out that 2% churn is achievable in the quarter.

Paul Saleh

I'll answer your question about the cost reductions and synergies. If I look at the one-time item that impacted also subsidies and also the wireline business in the first quarter, they represent about $0.01 to $0.02 per share. As we look at the cost and synergies for the remainder of the year, obviously the $100 million from the headcount reduction and then you are going to see the benefit of all of the IT improvement that we're putting in place, improving throughout the year; some in the second quarter but accelerating in the subsequent quarters. At the same time as we improve our customer churn, particularly on the involuntary side, you'll see also some greater efficiencies coming in from our care operations.

I think also you'll see from the distribution costs that we're taking out further efficiencies happening on the distribution side. I would say net-net you'll see the synergies just starting more in the second quarter and accelerating throughout the rest of the year.

Phil Cusick - Bear Stearns

Let me squeeze one more in here. You guys have rolled out EVDO extremely rapidly and that looks great. Putting QChat out, I'd think you'd have to have nearly 100% nationwide coverage but you still have some affiliate and partner issues in different regions around the country. Do you feel like those have to be nailed down before you can start selling QChat handsets?

Gary Forsee

Just like with PowerSource, we had to do an incredible mapping job of the CDMA to the iDEN network and today, we continue to tighten that mapping but as we launch PowerSource, we were probably in the 85% to 88% range. We'll go through the same exercise with QChat, which will again require, as you know, EVDO Rev A to be deployed so we'll have some spots but those will be de minimus in the overall scheme of covering 270 million pops. The point is well taken. There will be a mapping that we'll have to do very carefully just as we've done with PowerSource.

Operator

Your next question comes from David Janazzo - Merrill Lynch.

David Janazzo - Merrill Lynch

Can you give us an update on some of the unlimited wireless plans that you rolled out of late? Can you share some early results with us and what do you hope to achieve with those plans? Thanks.

Gary Forsee

We've had two initiatives. One which we've talked a fair amount about around Boost Unlimited. We've launched that in four markets. We actually didn't start the marketing and advertising of that until last week, so we had a soft launch, if you will, for about 30 days until we started actually advertising and marketing. It's too early to give any definitive numbers about that, but we do know at this stage that it appears that this is incremental business as we certainly staked out on the front end, not cannibalizing our post-paid book of business so that bodes well. But again , too early to declare that as a definitive data point.

That's why we've continued to maintain that this will be a trial and we've got very specific metrics that we are holding the Boost team accountable for to produce for us to be sure we are make the right economic call.

Secondly, we did have and have been running a trial in San Francisco for a post-paid unlimited offer which would include an EVDO capability along with that. That's a very limited trial and again, no results that we're prepared to point to at this point in time.

David Janazzo - Merrill Lynch

Thank you.

Gary Forsee

Thanks, David.

Operator

Your next question comes from the line of Simon Flannery with Morgan Stanley.

Simon Flannery - Morgan Stanley

Thanks very much, good morning. I wanted to talk about the iDEN churn and the iDEN disconnect if I could for a second. Can you give us a sense if you lose 100 iDEN customers, what percentage are flipping to CDMA, Sprint CDMA to the PowerSource phones or are leaving to a competitive carrier/ Where do you think you can take those percentages over time? Thanks.

Paul Saleh

Yes, on the iDEN side we would have two things happening. We are getting some of our customers to go to CDMA. We have other customers that are going to a PowerSource phone. I would suggest that about a third of those customers are taking the CDMA or a PowerSource device. Our objective also, as you can see from the objective that we have shared with you in terms of getting to the 2% churn, you're going to see that improvement even in the amount of deactivation both on the voluntary and involuntary side on the iDEN in subsequent quarters.

Simon Flannery - Morgan Stanley

Any updates on the timing of QChat?

Gary Forsee

Simon as I said, QChat from a technology deployment is on track. We will be deploying the capability and some of the devices sometime in late second quarter/ third quarter for a demonstration and to do some soft testing of that. I think you can expect in the summer time period that will have the opportunity to be showing that off in terms of its capability.

Again, as we've been saying, the testing, the latency performance, all of that is performing as we expected to iDEN levels and the device line-up that we're expecting in 2008 is coming on very strongly as well. So everything is on track and again, I think the reinforcement that we're getting with the acceptance of PowerSource and the capability of PowerSource is providing both to iDEN existing customers as we upgrade and move them as well as to new to the category is reinforcing the opportunity that we'll have for push-to-talk to become a feature on the QChat devices in 2008.

Operator

The next question will come from the line of Michael Rollins - Citigroup.

Michael Rollins - Citigroup

First on the ARPU, can you give us a little bit more color about where the ARPU of iDEN post-paid versus CDMA post-paid is? It used to be that iDEN was at a substantial premium and it looks like iDEN is on track to get to, or is at, a discount to CDMA. I was just wondering if you can give us a little bit more color and where you think that landing is going to be on the iDEN ARPU side as you continue the re-rating and movement of rate plans including as you start moving people over to PowerSource. Thanks.

Paul Saleh

I'll address the ARPU first. The two platforms are coming pretty close right now. There's a few dollars difference between the two plans. You have to remember that on the CDMA side, we're still benefiting from higher data ARPU of about $12.25 or $12.30 versus about $5,$ 4.50 to $5 on iDEN. When customers migrate to the PowerSource, we are not seeing a change in their ARPU profile. If I look actually behind the numbers as Gary mentioned in his remarks, that the CDMA ARPU actually has been relatively flat and I think as we look to the rest of the year, we expect that trend to continue, if not to see again data growth begin to offset voice decline.

We expect also on the iDEN side a continued pressure on the voice side but as we have stated before, as long as customers are on the iDEN platform, their data opportunities are somewhat limited and so as they go to PowerSource and ultimately to QChat, we'll have the ability just to bring that whole base up.

Lastly, I would say to you also on the CDMA side, you have to remember there's a certainly a larger percentage of family plans that are on the CDMA base than there are on the iDEN base.

Michael Rollins - Citigroup

One of the questions I think probably you get a lot is what's the market now for push-to-talk? Is there any way to look at the intensity of your push-to-talk user base and some data points you can share with us in terms of maybe what proportion of those really embrace the push-to-talk feature on the post-paid side versus those that might be more casual users of push-to-talk but really took the rate plans on Nextel for the phone or for free incoming minutes or some of the promotions that you used to run that were very popular a few years ago? Thanks.

Gary Forsee

I think we continue to see very strong demand for that feature, and I think we have to somewhat set aside the challenge that we had last year with the iDEN network and not let that overshadow the fact that the push-to-talk capability is an incredible productivity feature for business customers and a community feature for user groups like we've seen with Boost. I think the opportunity is really unlimited as far as we see that as we bring that feature capability fully over to the CDMA platform at the same latency. I think importantly, with the same level of application support that historically came out of the iDEN business group.

I think all of that from our perspective is how we see the general market. Specifically, we have all the facts and figures associated with how many are heavy users of the feature, how many are casual users and so forth and we'll continue to update you as we have those occasions.

Operator

Your next question comes from the line of Thomas Lee - JP Morgan.

Thomas Lee - JP Morgan

I just want to follow-up on a few of the other questions that were asked. Just starting with the question brought up by Michael, if we took your iDEN customer count of roughly 16.5 million in the quarter which is down about one 1.1 million from the fourth quarter, it implies roughly a 6% penetration of iDEN today. Your CDMA customer base is about a 9% total U.S. population penetration, and so it's kind of like for every three CDMA customers you have two iDEN.

Do you see the 6% penetration rate increasing over the next couple of years sustainably, especially because on the subprime side, companies like Metro have achieved 11% penetration on subprime products. So out of curiosity, is iDEN going to end up being kind of a low penetration business but with stable units or slightly increasing?

On Phil's question just about cost, because I think really key to your $11 billion to $11.5 billion of EBITDA for the year is establishing a sustainable ramp in EBITDA, and Paul, you'd mentioned there was about $0.05 in investment cost in the quarter which is about $230 million of EBITDA pre-tax. Out of curiosity, out of that nickel that you mentioned having impacted Q1, how much of that is one-time so that in Q2, we can just sort of think about that $0.05or the $230 million actually being added back to the run rate?

Gary Forsee

I'll take a shot at the first question on penetration and turn it to Paul on the investment. I think we've been giving platform specific information and transparency over the last several quarters for obvious reasons because the platform performance was diverging at that stage and we were starting to introduce the PowerSource device capability.

I will tell you that I suspect by the end of this year or certainly as we go into next year, that issue from our perspective will become less relevant versus how we report overall churn, overall post-paid penetration, and particularly as we get into QChat, deployment of the devices, we've declared very publicly that the iDEN platform remains a viable part of the equation for the company. But having said that, as we get Q-Chat deployed and we'll start to back off some of the development capabilities because we'll have that full capability resident on the CDMA and the QChat platforms in the 2008 timeframe.

We are in transition and I understand trying to triangulate the loss of iDEN customers in the third, fourth, and first quarter as a result of the issues we've already fully talked about and aired out, but I think going forward, while we're in this transition period, we're going to highlight PowerSource, we're going to highlight for our existing customers that we still have the iDEN capabilities that are significantly different than our competition. But over the long haul, we're going to be talking about total platform performance versus drilling down as we have in the most recent past anyway, on iDEN versus CDMA.

So I hope that's responsive. If not come back, but I think that sets up this transition period with PowerSource where we were overtly taking customer s that want the capability resident on CDMA, that's a conscious and directed effort that we're pursuing.

Paul Saleh

Tom, let me just address a couple of things. You mentioned about a million subscriber reduction on iDEN. I just want to reiterate that about 30% or about one-third, let's say, are just really transferring to either CDMA or to PowerSource, so that gives you a sense of how many subscribers we still have that are push-to-talk centric.

As far as the OIBDA and investments are concerned, I would say to you the investment of about $0.05 per share will remain and you should assume it every quarter for the remainder of the year. As you look at what will contribute to the adjusted OIBDA improving in the second quarter and ramping up from there, it would be some of the items that I mentioned during my remarks which is certainly we'll get a benefit from service revenue particularly on a sequential basis, post-paid subscriber growth will just be at least a contributor, and the stabilizing ARPU trends we don't expect to have the dollar decline that we saw from fourth to first. I think we expect stabilizing ARPU for the remainder of the year and Boost certainly a contributor to our growth in the service revenue.

I mentioned investment remaining the service revenue and I mentioned investment remaining relatively flat at $0.05 and then you get the benefit again on the handset subsidy we said we aren't going to be as high on the handset subsidy rate as we saw in the first quarter, particularly as we get improved handset costs and those one-time items from the first quarter just reversed in subsequent quarters.

Lastly, the synergies and cost savings that I just outlined in my remarks should also contribute to adjusted OIBDA improving from the run rate that we saw in the first quarter, and get us to the $11 billion to $11.5 billion for the full year.

Thomas Lee - JP Morgan

For ARPU and stabilizing subs to contribute to a sequential improvement in EBITDA, I actually would think you'd need to have a pretty substantial increase in customers in Q2 relative to Q1, especially because it looks like historically, seasonal ARPU would fall Q1 to Q2. So just out of curiosity are you talking about a substantial increase in customer units in Q2 or is it that you're seeing ARPU maybe not look like seasonal performance but being pretty stable with Q1 versus what it's done in the past?

Paul Saleh

We had just said that our objective is to see positive net adds in the second quarter and certainly with churn coming down as Gary mentioned, we should get the benefit of basically better margins also on our customers and on our revenue.

As far as ARPU is concerned, we're already seeing positive trends as I mentioned on the CDMA side and I wouldn't really look to historical trends and draw much conclusions from it at this point. We're looking at our monthly results and we feel confident that the ARPU will be stabilizing.

Thomas Lee - JP Morgan

In the fourth quarter, I think Partners was a 250,000 negative contributor to subscriber growth. Could you give us some color what it looked like in Q1 and then in Q2 directionally how it's heading in Q2?

Paul Saleh

The Partners churns continue to be just at a high level. It's about two times what it is on our iDEN platform, but it is improving. It's coming down slightly particularly on the involuntary side, and so I think throughout the year as you mentioned before, our objective is to drive it below the 3% level which is again one of the reasons why we believe that we will be exiting the year -- our objective if you remember was to exit the year below 2% on the churn level. They are one contributor but I think net-net, you're going to see CDMA churn improving, iDEN churn improving and Nextel Partners churn improving all contributing to our objective of improvements starting in the second quarter of this year.

Thomas Lee - JP Morgan

Okay, but I you are still, just because of existing trends, confident about positive net adds in Q2 and a sequential improvement in EBITDA then?

Paul Saleh

Yes.

Operator

Your next question will come from the line of David Barden - Banc of America.

David Barden - Banc of America

Great. Thanks for squeezing the question in. Two questions. On the CDMA ARPU, we talked a little bit about data obviously. What's happening on the voice side of CDMA ARPU that's keeping CDMA growth in check on the ARPU front? We have seen as much as I think 4% year-over-year ARPU growth for some kind of post-paid operators and your CDMA has been pretty stable. Has it been family plan, subscribers, mix shifts? Roaming declines? Just some clarity on what is keeping the voice pressure on the CDMA side and ARPU?

You guys have mentioned some of the successes you've had kind of moving to the more prime market, a disproportionately higher share of handsets at the higher end, and your desire to come down on handset subsidies overall through the course of the year. Could you talk about how that gels -- and everyone has a view on this but -- with this iPhone launch coming up? If you're leading with handsets and the handsets that you're leading with are at the higher end, does that mean you're more vulnerable potentially to any impact to that kind of launch and the hoopla that's going to come around it?

Gary Forsee

This is Gary. I'll start with the last point. Certainly there's going to be hoopla associated with the iPhone and we have a very robust handset line up. We just launched recently a Samsung Upstage phone which combines an iPod in the phone which is priced at sub $100 so I think for customers that want a $500 device, then there is certainly going to be opportunities for them in the marketplace to do that. We have a very wide range of devices that will appeal to a wide range of our 54 million customers so that will be continued focus on our part, and we continue to spend a lot of time on the user interface. We think we have with our handset manufacturers around the world as good an insight into trends and adoptability, usability as any of our competitors.

So we'll be competitive and we'll continue to add to our overall capability both applications that ride on the devices and devices themselves, but priced at $500 we have a very robust set of devices with similar capabilities. The Upstage and all of our music devices have over the air download capability which is certainly not part of what that competitive device will be about out of the gate.

Paul Saleh

I can address your ARPU question. On the CDMA side, what we're seeing is certainly data growth offsetting the voice decline, and then on the iDEN as I mentioned earlier, there's the voice decline and we do not have the opportunity to offset it as much on the data growth. Data is growing but not enough to offset the voice declines.

As I look to the rest of the quarter and the year, I expect again on the data side CDMA doing pretty well. We've also been benefiting actually as I look at the first quarter of this year, we changed some of our pricing plan. We introduced a value pack offering and on average, we have maybe 45% to 50% of either upgrade or new customers coming in on to those plans and those are accretive from a monthly revenue charge. I think that's a positive thing that bodes well for the remainder of the year.

Before I leave I just want to correct a comment I made to Tom and to the rest of you. The churn on Partner was 1.5 times what it was on the iDEN side.

Gary Forsee

Maybe one other comment on kind of ARPU trend digging a little bit deeper. We've made a conscience effort in the past year or so to improve the mix of customers including tightening credit, and as we do that, then in some cases ASL or spending limit customers that may have had higher ARPU have churned off involuntarily, and in some cases those are replaced with family plans or lower ARPU, so part of this is under the overall banner of improving our customer mix and when you do that, there's some slight impact that as we've been describing here on voice ARPU within the CDMA platform.

Having said that, we are on plan, if not slightly ahead of plan of what we had intended to do as a result of those consequences.

Operator

Your next question comes from the line of Tim Horan - CIBC.

Tim Horan - CIBC

Gary, it seems like in the last few years we've always had one weak player in the wireless front and with you guys really improving towards the second half of this year we really don't have that in the industry; Metro ramping up and T-Mobile is really ramping up. Are we going to potentially get back to the competitive intensity we saw three or four years ago and the handset subsidies increase or the price declines continue?

A second question on the QChat side. Will you have something that's really differentiated from whatever Verizon can do and maybe if so, you can describe why. Thanks.

Gary Forsee

On the second point, QChat is proprietary. We've spent several 100 million dollars to have that proprietary capability, so no one in any of the space whether it's CDMA or GSM will have that capability. It will be unique and it will replicate the functionality and the applications that have been supported on the iDEN platform on to the CDMA platform, so I hope that's responsive to the question. At that stage, every Q-Chat device will have backward compatibility if you will, for push-to-talk to the iDEN platform and the applications that today are resonant on the iDEN platform that we're bridging across PowerSource, those will also transition and migrate as well.

In terms of the industry, I guess my view of looking back no matter how far we look back, it's always been hyper competitive and will continue to be that way and we all pick our spots along the way whether it's with creating new pricing plans-- and that doesn't imply taking prices down -- but it's trying to appeal to certain type of customer segments whether it's introducing calling plans that start at 7:00 p.m. nights and weekends, all of those things are ways of creating value without concluding that that simply means we're going to drive price down.

I think our ability to continue to work with handset manufacturers around the world to drive the cost of the devices down and put more capability, again doesn't imply that there will be a subsidy battle out there as market share becomes competitive because I think that's what we all do today. We all find our unique capabilities and differentiation and as we look forward to launching our advertising and the messages that go along with that, I think that's certainly something that Sprint will highlight is what is unique and different about Sprint.

I know that's been one of the issues since the merger is how do we bring the two brands together. How do we make that compelling and we know that has been work in progress and we're certainly enthused about the work that really is now concluding as a result of PowerSource capability and QChat becoming fully enabled next year and we have been in transition with the brand image and we certainly are looking forward to solidifying what we'll stand for going forward.

Operator

Your next question will come from the line of Tom Sykes - Lehman Brothers.

Tom Sykes - Lehman Brothers

Could you talk generally about how much of a headwind if at all the construction industry slowdown is to the iDEN turnaround story? I mean, is it material enough that if the slowdown worsens it impacts your current planning?

Secondly, I was wondering if you could go into a little bit more detail as to how you're deploying the PowerSource phones into the sales channels. I mean, are these going only to direct channels so you can monitor more closely who is getting these handsets? Just in general talk about that.

Last, I was wondering when we might see some device announcements on WiMAX so that maybe we could see a little bit more concretely the opportunity this platform might represent beyond traditional wireless broadband? Thanks.

Gary Forsee

Yes, this is Gary, Tom. Let me take them in reverse order and you'll probably have to remind me about the first or second one. On WiMAX, I think some time in the late second quarter/third quarter, we'll likely have a forum where we'll describe more details about the rollout plan, the business plan. We've been contemplating needing to do that to provide visibility into both the business plan that we have as well as the capabilities and the devices go along with that. But suffice it to say, early devices in late '07 as we do soft market launches in Chicago, Baltimore; Washington will be laptop enabling devices and handset devices will be deployed, in the middle of 2008 would be the target.

And then chipsets embedded devices, mostly on consumer devices will be more in the late 2009 timeframe but at this stage, let me put a marker out there that late second, early third quarter we would likely gather a forum where we would talk about WiMAX and the rollout plans.

On PowerSource, really the late fourth quarter and first quarter was about seeding all of the channels and so at this point, I believe all of our direct and indirect channels have PowerSource device capability that they're selling and we certainly having toggled incentives and credits of both commissions as well as incentives and subsidies to the channels to be sure that we seed somewhat disproportionately early on to iDEN markets that were impacted last year by the network issue that we had. That's been the first round and in the second quarter we're mostly through that and we'll continue to have a higher percent of upgrades throughout the course of the year.

So it's targeted. It's in the channels targeted to certain markets and in the early stages, but more broadly based as we move forward.

Finally on economic trends, we pay attention to all of the data whether it's retail data or data specific to the construction industry. I think historically any time there's been a slowdown in macro construction that gets picked up and offset by renovation or other types of pieces at that and the construction industry represents a important part but on a relative basis, not a significant part of that overall iDEN base that we would have any concerns about.

Operator

Your next question comes from the line of Walter Piecyk - Pali Research.

Walter Piecyk - Pali Research

First I just wanted to follow-up on a prior question. Someone in their question implied that ARPU is typically seasonally down in Q2 and I just looked at the last five years and that has not been the case so I just wanted to follow-up on that question, why would it be seasonally flat when it's typically seasonally strong in Q2?

Kurt Fawkes

We indicated we expected to benefit from seasonality in the second quarter.

Walter Piecyk - Pali Research

So again, so the seasonal trend has not been weak in Q2?

Kurt Fawkes

No.

Walter Piecyk - Pali Research

But you're expecting flat ARPU in Q2?

Kurt Fawkes

We expect to benefit from seasonality in 2Q is what we indicated.

Paul Saleh

I think the comment about stabilizing ARPU trends was a comment for the remainder of the year, but throughout the year.

Walter Piecyk - Pali Research

I just think a caller implied that somehow seasonally it was typically weak and it was going to be strong this time around.

The other question was can you just provide a little bit more detail on the change in accounting on how you're calculating the churn rate, specifically, what is it that you're changing? I know Kurt had mentioned a couple of things at the front of the call but if you can go into those in more detail and how that impacts the absolute number of churn customers.

Also on the Power phone, I think you had talked about 4 million Power phone units to be sold this year and I think that was revised down in January so I'm just curious when you talk about the Power phone being on plan is that relative to the 4 million or is that relative to the revised 2 million or 3 million?

Then on CPGA, I month you don't report it, but it just seems from the SG&A levels that it looks like post- paid CPGA is approaching $600 and I wonder if you could give us a sense of is that the number you're going to come down from as these subsidies allegedly subside throughout the year? Thanks.

Gary Forsee

On PowerSource, we're tracking toward that 2 million to 3 million range, and that was a function of the 4 million came probably third quarter last year and we slowed the launch to be sure we had, again, network mapping and the distribution channels fully equipped and we had some mechanized requirements we wanted to get in just because of moving multiple users on the device. So it's tracking to the 2 million to 3 million range.

Paul Saleh

We don't give CPGA actual numbers but I would suggest to you that your numbers actually, the way you've calculated, you have not distinguished gross adds from retention investments.

Walter Piecyk - Pali Research

Actually, Paul, I have pulled out retention numbers. It would have been higher than that had I included the retention numbers in there.

Paul Saleh

Let me suggest to you that CPGA overall is higher than we would have expected but as I mentioned to you, we have actions underway just to make sure that our subsidy piece is coming down and we're scaling our cost across all of the other variables and so we would expect that to come down.

As far as the churn is concerned, what we are changing, we have a large base of business customers, and with corporate liable type of customers what we tend to see is they are responsible for a number of handsets and so whether it's a small business or a large enterprise, I'll give you a sense of what's happening.

As they deal with turnover in their own staff, we're seeing for example, somebody leaving like a certain company and yet the phone being given later on to somebody else, and in the past we had categorized somebody like that as an activation and a deactivation, and so what we're trying to do is net those out within a 30 day period so that we would avoid basically the distortion that comes from people again turning over within a company per se.

This is something that was really used by Nextel that was, the method used by Nextel in the past and as Kurt mentioned it would have potentially about 10 to 20 basis point of impact benefit for us in the second quarter, but we'll give you the numbers with and without it, and what it will do is reduce the gross adds accordingly but it will not impact net adds.

Walter Piecyk - Pali Research

Okay, so and for historical numbers we'll just basically revise everything down or are you going to provide historical churn numbers for this new accounting policy?

Paul Saleh

We will not, since again, this is a non-GAAP measure, we will not go back and give you what was the impact in prior years; but again, we'll give you a sense of what it is in the quarter and then you can make an estimate of what it was in prior quarters on that basis.

Walter Piecyk - Pali Research

So net of that number, just to reconfirm you're expecting the post-paid churn do go from 2.3% to 2.0% excluding this or 10 to 20 basis point help from the accounting change?

Paul Saleh

That is correct, before implementing that change. That is correct.

Walter Piecyk - Pali Research

Great. Thank you.

Operator

Your next question comes from the line of Jason Armstrong - Goldman Sachs.

Jason Armstrong - Goldman Sachs

Question on data pricing. Can you walk us through the decisions in the quarter on the competitive front and specifically text messaging? You went to $10 unlimited texting, competitors are in the sort of $15 to $20 range. So texting has been a big driver of data revenue growth. I'm just wondering why be so aggressive there and does this kickoff a broader attempt at price leadership on the data side?

The second question just on the air cards, you mentioned 1 million air cards at this point. As it relates to network planning I'm wondering how the usage profile and type of bandwidth requirements from these subscribers compares to your original expectations? Thanks.

Gary Forsee

Jason, it's Gary. On air cards I think the bandwidth planning on air card usage so far is tracking right against our business plan. Our overall EVDO business plan is running ahead of plan based on growth volume and revenue associated with that so the air card piece is embedded in that, but we're not seeing anything that would have been outside of our plan.

On data pricing, I think it's back end of the banner of we each pick our spots based on what we think would be attractive to our user profile and we have plan types that were part of that discussion as well.

Paul Saleh

I was just going add also that we do change a lot of times some pricing to drive penetration and see the market respond to certain promotional pricing plans.

Gary Forsee

Thanks, everybody for joining us. We appreciate your interest this morning and please feel free to contact us at Investor Relations if you have any additional questions. Thanks and have a good day.

TRANSCRIPT SPONSOR

Wall Street Horizon Logo

Do you get frustrated during earnings season?

Have you had trades go south because of bad earnings dates?

We know what it's like. We’ve been there. We’re Wall Street Horizon and we work with some of the largest firms on Wall Street.

Founded by former Fidelity Investments executives, we understand the power of trading on good information and the pain and suffering of trading otherwise. We obsess about earnings and economic events calendars so you don’t have to. Accurate. On time. Guaranteed.

Let us help.

Get Smart

Get Wall Street Horizon.

View our Free 30-day trial for investment professionals

To sponsor a Seeking Alpha transcript click here.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Sprint Nextel Q1 2007 Earnings Call Transcript
This Transcript
All Transcripts