sprint nextel Quarterly Presentations 2007 4th

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Sp

rin

t N

exte

lIn

vesto

r Q

uart

erl

y U

pdate

-4Q

07

Febru

ary

28, 2008

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Ku

rt F

aw

kes

Vic

e P

resid

ent of In

vesto

r R

ela

tions

3©

2008 S

print N

exte

l. A

ll rights

rese

rved.

Cautionary

Sta

tem

ent

•T

his

pre

senta

tion inclu

des “

forw

ard

-lookin

g s

tate

ments

”w

ithin

the m

eanin

g o

f th

e s

ecu

rities

law

s. T

he s

tate

ments

in this

pre

senta

tion r

egard

ing the

busin

ess

outlook, exp

ect

ed p

erf

orm

ance

, fo

rward

lookin

g g

uid

ance

, as

well

as o

ther

state

ments

that are

not his

torical f

act

s, a

refo

rward

-lookin

g s

tate

ments

.

The w

ord

s "e

stim

ate

," "

pro

ject

," ”

fore

cast

,”"i

nte

nd,"

"exp

ect

," "

belie

ve,"

"ta

rget,"

“pro

vid

ing g

uid

ance”

and s

imila

r exp

ress

ions

are

inte

nded to identif

y

forw

ard

-lookin

g s

tate

ments

. F

orw

ard

-lookin

g s

tate

ments

are

est

imate

s and p

roje

ctio

ns

reflecting m

anagem

ent's

judgm

ent based o

n c

urr

ently

availa

ble

in

form

ation a

nd invo

lve a

num

ber

of

risks

and u

nce

rtain

ties

thatco

uld

cause

act

ual re

sults

to d

iffe

r m

ate

rially

fro

m those

suggest

ed b

y th

e forw

ard

-lookin

g

sta

tem

ents

. W

ith r

espect

to these forw

ard

-lookin

g s

tate

ments

, m

anagem

ent has

made a

ssu

mptions r

egard

ing, am

ong o

ther

thin

gs,

cust

om

er

and n

etw

ork

usage, cu

stom

er

gro

wth

and r

ete

ntion, pricin

g, opera

ting c

ost

s, the t

imin

g o

f va

rious e

vents

and the e

conom

ic e

nvironm

ent. F

utu

re p

erf

orm

ance

cannot be

assure

d. A

ctual re

sults

may

diff

er

mate

rially

fro

m those

in the forw

ard

-lookin

g s

tate

ments

. S

om

e facto

rs that could

cause

act

ual re

sults

to d

iffer

incl

ude:

•th

e e

ffects

of vig

oro

us c

om

petition,

inclu

din

g the im

pact of

com

petition o

n the p

rice w

e a

re a

ble

to c

harg

e c

ust

om

ers

for

serv

ices a

nd e

quip

ment w

e p

rovid

e

and o

ur

abili

ty to a

ttra

ct n

ew

cust

om

ers

and r

eta

in e

xis

ting c

ust

om

ers

; th

e o

vera

ll dem

and for

our

serv

ice o

fferings, in

clu

din

g the im

pact

of decis

ions

of new

subsc

ribers

betw

een o

ur

post

-paid

and p

repaid

serv

ices o

fferings

and b

etw

een o

ur

two n

etw

ork

pla

tform

s; a

nd the im

pact

of new

, em

erg

ing a

nd c

om

peting

technolo

gie

s on o

ur

busin

ess;

•

the im

pact of ove

rall

wirele

ss m

ark

et penetr

ation o

n o

ur

abili

tyto

attra

ct and r

eta

in c

ust

om

ers

with

good c

redit

standin

g a

nd the inte

nsifi

ed c

om

petition

am

ong w

irele

ss

carr

iers

for

those c

ust

om

ers

; •

the im

pact of diff

icultie

s w

e m

ay

continue to e

nco

unte

r in

connect

ion w

ith the inte

gra

tion o

f th

e p

re-m

erg

er

Sprint and N

ext

el busin

esse

s, a

nd the inte

gra

tion

of th

e b

usin

esse

s and a

ssets

of N

ext

el P

art

ners

, In

c. a

nd the P

CS

Aff

iliate

s that pro

vid

e w

irele

ss

PC

S u

nder

the S

print®

bra

nd n

am

e, th

at w

e h

ave

acquired, in

clu

din

g the r

isk that th

ese d

iffic

ultie

s co

uld

pre

vent or

dela

y our

realiz

ation o

f th

e c

ost

savin

gs

and o

ther

benefits

we e

xpect

to a

chie

ve a

s a

result

of th

ese inte

gra

tion e

ffort

s a

nd the r

isk that w

e w

ill b

eunable

to c

ontinue to r

eta

in k

ey

em

plo

yees;

•

the u

nce

rtain

ties

rela

ted to the im

ple

menta

tion o

f our

busin

ess

str

ate

gie

s, invest

ments

in o

ur

netw

ork

s, our

syst

em

s, a

nd o

ther

busin

esse

s, inclu

din

g

invest

ments

required in c

onnect

ion w

ith o

ur

pla

nned d

eplo

ym

ent of a n

ext genera

tion b

roadband w

irele

ss

netw

ork

; •

the c

osts

and b

usin

ess

risks a

sso

cia

ted w

ith p

rovid

ing n

ew

serv

ices a

nd e

nte

ring n

ew

geogra

phic

mark

ets

, in

clu

din

g w

ith r

espect

to o

ur

deve

lopm

ent of

new

serv

ices

exp

ecte

d to b

e p

rovid

ed u

sin

g the n

ext genera

tion b

roadband w

irele

ss

netw

ork

that w

e p

lan to d

eplo

y;

•th

e im

pact of pote

ntial a

dvers

e c

hanges in the r

atin

gs

afford

ed o

ur

debt se

curities

by r

atings a

gencie

s;

•th

e e

ffects

of m

erg

ers

and c

onsolid

ations

and n

ew

entr

ants

in the c

om

munic

ations

indust

ry a

nd u

nexpect

ed a

nnouncem

ents

or

develo

pm

ents

fro

m o

thers

in

the c

om

munic

ations

industr

y;

•unexpect

ed r

esults

of lit

igation file

d a

gain

st us;

•

the inabili

ty o

f th

ird p

art

ies to p

erf

orm

to o

ur

requirem

ents

under

agre

em

ents

rela

ted to o

ur

busin

ess o

pera

tions,

inclu

din

g a

sig

nific

ant adve

rse c

hange in

the a

bili

ty o

f any

of our

handset su

pplie

rs to p

rovid

e d

evic

es, or

Moto

rola

, In

c.’s

abili

ty o

r w

illin

gness

to p

rovid

e r

ela

ted e

quip

ment and s

oftw

are

applic

ations,

or

to d

eve

lop n

ew

technolo

gie

s o

r fe

atu

res

for

our

iDE

N®

, netw

ork

; •

the im

pact of advers

e n

etw

ork

perf

orm

ance

; •

the c

osts

and/o

r pote

ntial c

usto

mer

impacts

of com

plia

nce w

ith r

egula

tory

mandate

s, p

art

icula

rly r

equirem

ents

rela

ted to the r

econfigura

tion o

f th

e 8

00 M

Hz

band u

sed to o

pera

te o

ur

iDE

N n

etw

ork

, as

conte

mpla

ted b

y th

e F

edera

l C

om

munic

ations

Com

mis

sion

’s R

eport

and O

rder

rele

ase

d in A

ugust

2004 a

s supple

mente

d b

y subse

quent m

em

ora

ndum

s;

•equip

ment fa

ilure

, natu

ral dis

ast

ers

, te

rrorist

act

s, o

r oth

er

bre

aches

of netw

ork

or

info

rmation tech

nolo

gy

security

; •

one o

r m

ore

of th

e m

ark

ets

in w

hic

h w

e c

om

pete

bein

g im

pact

ed b

ych

anges in p

olit

ical, e

conom

ic o

r oth

er

fact

ors

such

as

moneta

ry p

olic

y,

legal and

regula

tory

changes

or

oth

er

ext

ern

al f

act

ors

ove

r w

hic

h w

e h

ave

no c

ontr

ol;

•and o

ther

risks

refe

rence

d fro

m tim

e to tim

e in o

ur

filin

gs w

ithth

e S

ecurities a

nd E

xch

ange C

om

mis

sio

n, in

clu

din

g o

ur

Form

10-K

for

the y

ear

ended

Decem

ber

31, 2006, in

Part

I, Item

1A

, “R

isk F

act

ors

”and u

pcom

ing F

orm

10-K

for

the y

ear

ended D

ecem

ber

31, 2007.

4©

2008 S

print N

exte

l. A

ll rights

rese

rved.

Non-G

AA

P F

inancia

l M

easure

sS

print

Next

el p

rovid

es

financia

l measu

res

genera

ted u

sin

g g

enera

lly a

ccepte

d a

ccounting p

rincip

les

(GA

AP

) and u

sin

g a

dju

stm

ents

to G

AA

P (

non-G

AA

P).

T

he n

on-G

AA

P fin

ancia

l measure

s re

flect

indust

ry c

onve

ntions,

or

standard

measu

res

of liq

uid

ity,

pro

fitabili

ty o

r perf

orm

ance

com

monly

use

d b

y th

e

invest

ment com

munity

for

com

para

bili

ty p

urp

oses.

These

non-G

AA

P m

easu

res

are

not m

easure

ments

under

acco

unting p

rincip

les g

enera

lly a

ccepte

d in

the U

nite

d S

tate

s. T

hese

measu

rem

ents

should

be c

onsid

ere

d in a

dditio

n to, but not as

a s

ubst

itute

for,

the info

rmation c

onta

ined in o

ur

financia

l sta

tem

ents

pre

pare

d in a

ccord

ance w

ith G

AA

P. W

e h

ave d

efined b

elo

w e

ach o

f th

e n

on-G

AA

P m

easure

s w

e u

se, but th

ese m

easu

res

may n

ot be

synonym

ous

to s

imila

r m

easu

rem

ent te

rms

used b

y oth

er

com

panie

s.S

print N

ext

el p

rovid

es

reconcili

ations

of th

ese

non-G

AA

P m

easu

res in its

fin

ancia

l re

port

ing. B

ecause

Sprint N

ext

el d

oes

not pre

dic

t specia

l ite

ms

that m

ight occur

in the futu

re, and o

ur

fore

cast

s are

deve

loped a

t a level o

f deta

il diff

ere

nt

than that used to p

repare

GA

AP

-base

d fin

ancia

l m

easu

res,

Sprint N

ext

el d

oes

not pro

vid

e r

econcili

atio

ns to G

AA

P o

f its

forw

ard

-lookin

g fin

ancia

l m

easure

s.

The m

easu

res

use

d in this

rele

ase

inclu

de the follo

win

g:

•A

dju

ste

d E

arn

ing

s p

er

Sh

are

(E

PS

)is

defined a

s inco

me fro

m c

ontinuin

g o

pera

tions, befo

re s

pecia

litem

s, n

et of ta

x and the d

ilute

d E

PS

calc

ula

ted

there

on.

Ad

juste

d E

PS

befo

re A

mo

rtiz

ati

on

is d

efined a

s incom

e fro

m c

ontinuin

g o

pera

tions,

befo

re s

pecia

l item

s and a

mort

ization, net of ta

x, a

nd

the d

ilute

d E

PS

calc

ula

ted there

on. T

hese n

on-G

AA

P m

easu

res s

hould

be u

sed in a

dditio

n to, but not as

a s

ubst

itute

for,

the a

naly

sis

pro

vid

ed in the

sta

tem

ent of opera

tions.

We b

elie

ve that th

ese

measu

res

are

use

ful b

ecause they a

llow

investo

rs to e

valu

ate

our

perf

orm

ance

for

diff

ere

nt periods

on a

m

ore

com

para

ble

basis

by

exclu

din

g ite

ms

that re

late

to a

cquired

am

ort

izable

inta

ngib

le a

sse

ts a

nd n

ot to

the o

ngoin

g o

pera

tions

of our

busin

esse

s.•

Ad

juste

d N

et

Inco

me

is d

efined a

s in

com

e (

loss)

from

continuin

g o

pera

tions

befo

re s

pecia

l ite

ms.

A

dju

ste

d N

et

Inco

me b

efo

re A

mo

rtiz

ati

on

is

defined a

s incom

e (

loss)

from

continuin

g o

pera

tions

befo

re s

pecia

l ite

ms

and a

mort

ization, net of ta

x. T

hese n

on-G

AA

P m

easure

s sh

ould

be u

sed in

additio

n to, but not as

a s

ubst

itute

for,

the a

naly

sis

pro

vid

ed in the s

tate

ment of opera

tions. W

e b

elie

ve that th

ese

measu

res a

re u

sefu

l because

they

allo

w inve

stors

to e

valu

ate

our

perf

orm

ance for

diff

ere

nt periods

on a

more

com

para

ble

basis

by e

xcl

udin

g ite

ms

that do n

ot re

late

to the o

ngoin

g

opera

tions

of our

busin

ess

es.

•

Ad

juste

d O

IBD

A is d

efin

ed a

s opera

ting incom

e b

efo

re d

epre

cia

tion, am

ort

ization, re

str

uct

uring a

nd a

sse

t im

pairm

ents

, and s

pecia

l ite

ms. A

dju

ste

d

OIB

DA

less C

ap

Ex r

epre

sents

Adju

ste

d O

IBD

A less

our

capita

l expenditu

res.

A

dju

ste

d O

IBD

A M

arg

inre

pre

sents

Adju

sted O

IBD

A d

ivid

ed b

y non-

equip

ment net opera

ting r

evenues

for

Wirele

ss a

nd A

dju

sted O

IBD

Adiv

ided b

y net opera

ting r

eve

nues

for

Long D

ista

nce. T

hese

non-G

AA

P m

easure

s should

be u

sed in a

dditio

n to, but not as a

subst

itute

for,

the a

naly

sis

pro

vid

ed in the s

tate

ment of opera

tions.

We b

elie

ve that A

dju

sted O

IBD

A a

nd

Adju

sted O

IBD

A M

arg

in p

rovid

e u

sefu

l info

rmation to invest

ors

beca

use

they

are

an indic

ato

r of th

e s

trength

and p

erf

orm

ance

of our

ongoin

g b

usin

ess

opera

tions,

inclu

din

g o

ur

abili

ty to fund d

iscre

tionary

spendin

gsu

ch a

s capital e

xpenditure

s, s

pect

rum

acquis

itio

ns

and o

ther

invest

ments

and o

ur

abili

ty to incu

r and s

erv

ice d

ebt. W

hile

depre

cia

tion a

nd a

mort

ization a

re c

onsid

ere

d o

pera

ting c

ost

s u

nder

genera

lly a

ccepte

d a

ccounting p

rincip

les,

these

exp

ense

s prim

arily

repre

sent non-c

ash

curr

ent period a

llocation o

f co

sts a

sso

cia

ted w

ith long-liv

ed a

ssets

acq

uired o

r const

ruct

ed in p

rior

periods.

Adju

sted O

IBD

A a

nd A

dju

sted O

IBD

A M

arg

in a

re c

alc

ula

tions

com

monly

use

d a

s a b

asis

for

inve

stors

, analy

sts

and c

redit

rating a

gencie

s to

evalu

ate

and c

om

pare

the p

eriodic

and futu

re o

pera

ting p

erf

orm

ance

and v

alu

e o

f co

mpanie

s w

ithin

the tele

com

munic

ations

indust

ry.

5©

2008 S

print N

exte

l. A

ll rights

rese

rved.

Net Income

EPS

Net Income

EPS

(millions)

(millions)

Reported - Continuing Operations

($29,452)

($10.36)

$261

$0.09

Special Items

$43

$0.02

$21

$0.00

Goodwill Impairment

$29,571

$10.40

$0

$0.00

Amortization

$430

$0.15

$560

$0.20

Adjusted

$592

$0.21

$842

$0.29

4Q-07

4Q-06

Norm

aliz

ing E

PS

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Bill

Are

nd

t A

cting C

hie

f F

inancia

l O

ffic

er

&

Contr

olle

r

7©

2008 S

print N

exte

l. A

ll rights

rese

rved.

Wirele

ss S

ubscriber

Tre

nds

•L

ow

er

Q4

gro

ss a

dds d

ue

to

–C

om

pe

titive

ma

rke

t co

nditio

ns

–E

asin

g o

f Q

4 s

ea

so

na

l tr

en

ds

–D

eclin

e in

su

b-p

rim

e

4Q

06

4Q

07

Po

stp

aid

Su

bs

cri

be

rs

Pre

pa

id S

ub

sc

rib

ers

42%

58%

33%

67%

iDE

N

CD

MA

(incl. P

ow

erS

ourc

e)

41.8

M40.8

M

4Q

06

4Q

07

100%

11%

89%

Unlim

ited

Tra

ditio

nal

4.0

M

4.6

M

•B

oo

st

Un

limite

d e

xp

an

sio

n

•T

rad

itio

na

l pre

pa

id c

ha

llen

ge

d

8©

2008 S

print N

exte

l. A

ll rights

rese

rved.

Revenue P

erf

orm

ance (b

illio

ns)

Wir

ele

ss E

qu

ipm

en

t

Wir

eli

ne

Q4-0

6Q

3-0

7Q

4-0

7

Wir

ele

ss S

erv

ice

Q4-0

6Q

3-0

7Q

4-0

7

Q4-0

6Q

3-0

7Q

4-0

7

Q4-0

6Q

3-0

7Q

4-0

7

$8.2

1

$8.0

4

$7.8

2

$0.6

6$0.6

8

$0.7

9

To

tal R

even

ues

$1.6

3

$1.6

1$1.6

2$10.4

4

$10.0

4

$9.8

5

9©

2008 S

print N

exte

l. A

ll rights

rese

rved.

Postp

aid

AR

PU

Pre

ssure

•S

tab

le C

DM

A A

RP

U &

De

clin

ing

iD

EN

AR

PU

•M

RC

•U

nfa

vo

rab

le m

ix o

f de

activa

tio

ns v

s. a

cqu

isitio

ns

•F

am

ily p

lan

s

•H

igh

er

mix

of g

ove

rnm

en

t an

d b

usin

ess a

ccou

nts

•O

ve

rag

e

•L

ow

er

iDE

N u

sa

ge &

se

ason

alit

y

•W

ire

less D

ata

•A

irca

rds,

text m

essa

gin

g,

& P

ow

erV

isio

n b

un

dle

s

3Q

-07

4Q

-07

$59

MR

C

Overa

ge

& R

oam

ing

Data

$58

Oth

er

~80%

Data

~20%

10

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Sequential C

hanges to A

dju

ste

d O

IBD

A

3Q

-07

4Q

-07

$2

.88B

Ch

urn

& A

RP

U

Cu

sto

mer

care

, b

ad

d

eb

t &

oth

er

exp

en

ses

Lo

wer

acq

uis

itio

n c

osts

&

Wir

eli

ne i

mp

rovem

en

ts$

2.4

6B

11

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Capital S

pendin

g &

Fin

ancia

l F

lexib

ility

•C

DM

A investm

ents

in c

apacity

& c

overa

ge

•E

xpanded E

VD

O r

ev A

to ~

220M

PO

Ps

•C

ontinued iD

EN

qualit

y fo

cus

•S

upport

ing M

PL

S a

nd C

able

VO

IP g

row

th

•In

itia

l X

ohm

constr

uction

Note

: ca

pita

l sp

endin

g f

igure

s do n

ot in

clu

de the n

on-n

etw

ork

port

ion o

f re

-bandin

g e

xpenditure

s.

Ca

pit

al

Sp

en

din

g o

f $6

.5B

in

20

07

•A

nticip

ate

lo

wer

core

capital spendin

g in 2

008

•$2.5

B d

raw

n f

rom

revolv

ing c

redit facili

ty

•C

om

mon d

ivid

end s

uspended

Gre

ate

r F

inan

cia

l F

lex

ibilit

y

Q1-0

7Q

2-0

7Q

3-0

7Q

4-0

7

$1.6

$1.7

$1.2

$2.0

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Dan

Hes

se

Pre

sid

ent and C

EO

13

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Turn

aro

und w

ill take tim

e, but w

e’re takin

g a

ction

•R

ed

ucin

g e

mp

loye

es, contr

acto

rs &

un

der-

pe

rform

ing

dis

trib

utio

n

•U

nifie

d c

ulture

focused o

n th

e c

usto

me

r exp

eri

ence, urg

ency

an

d a

ccou

nta

bili

ty

•C

onsolid

ate

d H

Q

•N

ew

lea

ders

hip

14

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Str

ong A

ssets

•P

eop

le

•T

ech

no

logy

•S

pectr

um

•54 M

illio

n C

usto

mers

•N

etw

ork

s--

CD

MA

--IP

/MP

LS

backbo

ne

--iD

EN

15

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Actions to R

e-invig

ora

te N

exte

l D

irect C

onnect

•N

exte

l D

irect C

onn

ect on b

oth

iD

EN

an

d C

DM

A

•N

ew

Moto

rola

iD

EN

ha

ndsets

•W

orld

’s fir

st iD

EN

/WiF

i B

lackb

err

y in 2

008

•N

etw

ork

perf

orm

ing a

t best-

ever

levels

16

©2008 S

print N

exte

l. A

ll rights

rese

rved.

We M

ust Im

pro

ve the C

usto

mer

Experience

•Job #

1

•C

hu

rn is t

op m

etr

ic

•La

g b

etw

een im

pro

ve

me

nts

and m

ark

et

perc

eptio

n

•S

tiff h

ead

win

ds in 2

00

8

•A

nticip

ate

net p

ost paid

su

bscrib

er

loss o

f 1.2

M in Q

1

•A

dju

ste

d O

IBD

A d

eclin

e in Q

1 to $

1.8

-$1.9

B

17

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Positio

nin

g the S

print B

rand

Sp

rin

t S

peed

•N

exte

l D

irect C

onn

ect

•N

atio

n’s

larg

est

mo

bile

bro

ad

ba

nd n

etw

ork

18

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Sim

ply

Every

thin

g

•“O

ne R

ate

”, for

surf

, chir

p, e

mail,

text, n

avig

ation

an

d v

oic

e.

•$9

9.9

9 S

imp

ly E

ve

ryth

ing

•C

DM

A a

nd iD

EN

sim

plic

ity

•F

am

ily a

nd p

acka

ge

d d

eals

•E

xclu

siv

e N

FL a

nd N

AS

CA

R c

onte

nt

19

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Leaders

hip

in 4

thG

enera

tion

•T

ech

no

logy is w

ork

ing

•U

tiliz

es w

ealth o

f sp

ectr

um

assets

•X

oh

m th

ree-y

ear

4G

he

ad s

tart

•$9

9.9

9 S

imp

ly E

ve

ryth

ing a

nd

Xoh

m p

ositio

n S

pri

nt to

be th

e

carr

ier

tha

t le

ads w

irele

ss t

o r

each its

full

pote

ntia

l

20

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Q&

A

•D

an H

esse, P

resid

ent an

d C

EO

•B

ill A

ren

dt,

Contr

olle

r &

Acting C

hie

f F

ina

ncia

l O

ffic

er

•P

aget A

lves, A

cting

Pre

sid

ent

of S

ale

s &

Dis

trib

ution

•Joh

n G

arc

ia, A

cting C

hie

f M

ark

etin

g O

ffic

er

•B

ob J

ohn

son, C

hie

f S

erv

ice O

ffic

er

•K

ath

y W

alk

er,

Ch

ief

Netw

ork

Offic

er

•K

urt

Faw

kes, V

ice P

resid

ent o

f In

vesto

r R

ela

tio

ns

21

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Non-G

AA

P R

econcili

ations

September 30,

September 30,

December 31,

December 31,

December 31,

December 31,

2007

2006

2007

2006

2007

2006

Operating (Loss) Income

398

$

719

$

(29,625)

$

569

$

(28,910)

$

2,484

$

Special items before taxes

Merger and integration expense (2)

135

107

119

117

516

413

Severance, exit costs and asset im

pairments (3)

125

50

56

79

440

207

Goodwill im

pairment (4)

-

-

29,729

-

29,729

-

Contingencies and other (7)

-

1

(44)

5

2

4

Adjusted Operating Income*

658

877

235

770

1,777

3,108

Depreciation and amortization

2,222

2,488

2,220

2,404

9,023

9,592

Adjusted OIBDA*

2,880

3,365

2,455

3,174

10,800

12,700

Capital expenditures (8)

1,176

1,843

2,009

2,612

6,458

7,057

Adjusted OIBDA* less Capex

1,704

$

1,522

$

446

$

562

$

4,342

$

5,643

$

Operating Income Margin (b)

4.2%

7.4%

-322.8%

5.9%

-76.9%

6.6%

Adjusted OIBDA Margin* (c)

30.7%

34.9%

26.8%

33.0%

28.8%

33.6%

(2), (3), (4), (7), (8) See accompanying Notes to Financial Data.

(b) Operating Income Margin excludes equipment revenue.

Quarter Ended

Quarter Ended

Year To Date

(c) Adjusted OIBDA Margin excludes equipment revenue, revenue generated by the non-core line of business that has been norm

alized out of Adjusted OIBDA and certain other

non-recurring revenue adjustm

ents.

22

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Non-G

AA

P R

econcili

ations

RECONCILIATIONS OF EARNINGS PER SHARE (Unaudited)

(Millions, except per share data)

December 31,

December 31,

September 30,

September 30,

December 31,

December 31,

2007

2006

2007

2006

2007

2006

(Loss) Income Available to Common Shareholders

(29,452)

$

261

$

64

$

279

$

(29,580)

$

1,327

$

Preferred stock dividends paid

-

-

-

-

-

2

Net (Loss) Income

(29,452)

261

64

279

(29,580)

1,329

Discontinued operations, net

-

-

-

-

-

(334)

(Loss) Income from Continuing Operations

(29,452)

261

64

279

(29,580)

995

Special items (net of taxes) (a)

Merger and integration expense

72

71

84

66

316

252


pairment

35

52

78

31

274

129

Goodwill im

pairment

29,571

-

-

-

29,571

-

Contingencies and other

(27)

6

-

2

10

8

Net gains on investm

ent activities and equity in earnings (5)

(37)

(92)

(4)

-

(52)

(132)

Tax audit settlement

-

(16)

(19)

(42)

(19)

(58)

Gain on early retirement of debt

-

-

(3)

(4)

(5)

(9)

Adjusted Net Income*

162

$

282

$

200

$

332

$

515

$

1,185

$

Amortization (net of taxes)

430

560

472

619

2,000

2,320

Adjusted Net Income before Amortization*

592

$

842

$

672

$

951

$

2,515

$

3,505

$

Diluted (Loss) Earnings Per Common Share

(10.36)

0.09

0.02

0.09

(10.31)

0.45

Discontinued operations

-

-

-

-

-

(0.11)

Diluted (Loss) Earnings Per Common Share from

Continuing Operations

(10.36)

0.09

0.02

0.09

(10.31)

0.34

Special items (net of taxes) (a)

10.42

-

0.05

0.02

10.49

0.06

Adjusted Earnings Per Share*

0.06

$

0.09

$

0.07

$

0.11

$

0.18

$

0.40

$

Amortization (net of taxes)

(b)

0.15

0.20

0.16

0.21

0.70

0.78

Adjusted Earnings Per Share before Amortization* (b)

0.21

$

0.29

$

0.23

$

0.32

$

0.88

$

1.18

$

(a) See accompanying Notes to Financial Data.

(b) Rounding differences are recorded to the Amortization (net of taxes) line.

(5) See accompanying Notes to Financial Data.

Quarter Ended

Year To Date

Quarter Ended

23

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Non-G

AA

P R

econcili

ations -

Wirele

ss

September 30,

September 30,

December 31,

December 31,

December 31,

December 31,

2007

2006

2007

2006

2007

2006

Operating (Loss) Income

319

$

708

$

(29,674)

$

488

$

(29,038)

$

2,222

$


Merger and integration expense (2)

76

42

87

86

344

191


pairments (3)

119

41

41

73

386

175

Goodwill im

pairment (4)

-

-

29,729

-

29,729

-


-

1

(15)

5

8

4


514

792

168

652

1,429

2,592


2,089

2,364

2,077

2,257

8,485

9,086

Adjusted OIBDA*

2,603

3,156

2,245

2,909

9,914

11,678


813

1,473

1,404

2,238

4,991

5,846


1,790

$

1,683

$

841

$

671

$

4,923

$

5,832

$

Operating Income Margin (b)

4.0%

8.6%

-379.2%

5.9%

-90.4%

7.0%

Adjusted OIBDA Margin* (c)

32.4%

38.4%

28.7%

35.5%

30.9%

36.6%

(2), (3), (4), (7), (8) See accompanying Notes to Financial Data.

(b) Operating Income Margin excludes equipment revenue.

(c) Adjusted OIBDA M

argin excludes equipment revenue, revenue generated by the non-core line of business that has been norm

alized out of Adjusted OIBDA and

certain other non-recurring revenue adjustm

ents.

Quarter Ended

Quarter Ended

Year To Date

24

©2008 S

print N

exte

l. A

ll rights

rese

rved.

Non-G

AA

P R

econcili

ations -

Wirelin

e

September 30,

September 30,

December 31,

December 31,

December 31,

December 31,

2007

2006

2007

2006

2007

2006

Operating Income

155

$

77

$

194

$

111

$

498

$

454

$



pairments (3)

3

9

13

5

48

31


-

-

(29)

-

(6)

-


158

86

178

116

540

485


132

124

142

147

534

506

Adjusted OIBDA*

290

210

320

263

1,074

991


138

255

205

274

632

821


152

$

(45)

$

115

$

(11)

$

442

$

170

$

Operating Income Margin

9.6%

4.7%

12.0%

6.8%

7.7%

6.9%

Adjusted OIBDA Margin*

18.0%

12.9%

19.8%

16.1%

16.6%

15.1%

(3), (7), (8) See accompanying Notes to Financial Data.

Quarter Ended

Quarter Ended

Year To Date

Economy & Finance

sprint nextel Quarterly Presentations 2007 4th