Verizon wireless - Re: Sprint Leads in data ARPU, Verizon passes Cingular in Subscribers, according to IDC Report

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Re: Sprint Leads in data ARPU, Verizon passes Cingular in Subscribers, according to IDC Report

John Navas

2007-04-06, 4:33 am

On Thu, 05 Apr 2007 11:20:48 -0700, SMS <scharf.steven@geemail.com>
wrote in < 46153e02$0$27174$742
ec2ed@news.sonic.net>:

>[SNIP]

Reality check:

Sprint still struggling to make Nextel merger work
Revenue expected to remain flat and big layoffs
coming for wireless carrier.
By Denise Pappalardo, NetworkWorld.com, 01/09/07
<http://www.networkworld.com/news/20...l-earnings.html>

The honeymoon period is clearly over for Sprint and Nextel. Their $36
billion marriage at the end of 2005 was supposed to result in a
wireless powerhouse with strong average revenue per user (ARPU). But
Sprint Nextel Monday said its earnings for 2007 will fall below
earlier expectation; its revenue will be flat and that it will lay
off 5,000 employees to cut costs.

....

Industry watchers say the carrier's ARPU sipped even further in the
fourth quarter after three consecutive months of decline, yet strong
ARPU was one of the reasons Sprint bought Nextel.

Back in 2004, when the merger was proposed, Nextel’s ARPU was $69
while Sprint’s was $63, Verizon’s $51.58 and Cingular’s $49.78. But
Sprint Nextel hasn’t been able to maintain Nextel’s ARPU let alone
Sprint's. The combined company reported ARPU of $61 in the third
quarter.

On the other hand, Verizon and Cingular’s figures have remained
steady. Verizon reported ARPU of $50.59 and Cingular reported ARPU of
$49.76 during the same period.

In an attempt to cut expenses, Sprint Nextel is slashing its
workforce to 59,600, about an 8% reduction expected to happen mostly
this quarter.

Trimming its payroll is one way it’s attempting to fix its financial
problems, but the company clearly is betting its future on wireless
broadband services, namely EV-DO Revision A and WiMAX.

The company says its capital expenditures will be about $8.5 billion
in 2007, $1.4 billion more than in 2006. The majority of that will be
spent on expanding its wireless broadband networks.

But the company’s laser focus on wireless broadband seems to be
hurting the carrier in the short term.

Some have speculated that the company has not maintained the Nextel
network, services or customer service. Reports say that the majority
of customers leaving Sprint stem from the Nextel side of the house,
hence the loss of Nextel’s high ARPU.

[MORE]

--
Best regards, SEE THE FAQ FOR CINGULAR WIRELESS AT
John Navas <http://en.wikibooks.org/wiki/ Cingu...less_FA
Q>

Elmo P. Shagnasty

2007-04-06, 7:33 am

In article < 7fkb13578d2aglkqovb8
boheuorbf8srse@4ax.com>,
John Navas < spamfilter0@navasgro
up.com> wrote:

> On Thu, 05 Apr 2007 11:20:48 -0700, SMS <scharf.steven@geemail.com>
> wrote in < 46153e02$0$27174$742
ec2ed@news.sonic.net>:
>
>
> Reality check:

Rubbish.

james g. keegan jr.

2007-04-06, 10:33 am

Scott

2007-04-06, 10:33 pm

John Navas < spamfilter0@navasgro
up.com> wrote in
news:7fkb13578d2aglk
qovb8boheuorbf8srse@
4ax.com:

> On Thu, 05 Apr 2007 11:20:48 -0700, SMS <scharf.steven@geemail.com>
> wrote in < 46153e02$0$27174$742
ec2ed@news.sonic.net>:
>
>
> Reality check:
>
> Sprint still struggling to make Nextel merger work
> Revenue expected to remain flat and big layoffs
> coming for wireless carrier.
> By Denise Pappalardo, NetworkWorld.com, 01/09/07
> <http://www.networkworld.com/news/20...tel-earnings.ht
> ml>
>

A four month old article? May be you should take your head out of your XXX
and look at more recent events.

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