Sprint - Nextel 2005 Annual Report Download - page 40

intercarrier compensation reform also may provide more regulatory certainty regarding charges applicable to
VoIP traffic, but it could also reduce the revenues of our Local segment unless the plan provides a mechanism to
replace those revenues with revenues from other sources.
Depending upon its outcome, the FCC’s proceedings regarding regulation of special access rates could affect the
rates paid by our Long Distance segment and revenues received by our Local segment for special access services
in the future.
Concerns about health risks associated with wireless equipment may reduce the demand for our services.
Portable communications devices have been alleged to pose health risks, including cancer, due to radio frequency
emissions from these devices. Purported class actions and other lawsuits have been filed against numerous
wireless carriers, including us, seeking not only damages but also remedies that could increase our cost of doing
business. We cannot be sure of the outcome of those cases or that our business and financial condition will not be
adversely affected by litigation of this nature or public perception about health risks. The actual or perceived risk
of mobile communications devices could adversely affect us through a reduction in subscribers, reduced network
usage per subscriber or reduced financing available to the mobile communications industry. Further research and
studies are ongoing, and we cannot be sure that additional studies will not demonstrate a link between radio
frequency emissions and health concerns.
Item 1B. Unresolved Staff Comments.
Not applicable.
Item 2. Properties
We currently lease our corporate headquarters offices in Reston, Virginia. These facilities total about 801,000
square feet and the related operating leases have initial terms expiring in 2009, 2010 and 2014. None of the
expiration dates includes potential extensions related to the exercise of renewal options. Our operational
headquarters campus is located in Overland Park, Kansas and consists of about 4 million square feet, which is
carried on our consolidated balance sheets.
Our gross property, plant and equipment at December 31, 2005 totaled $55.9 billion, distributed among the
business segments as follows:
2005
(in billions)
Wireless ......................................................... $ 31.2
Long Distance .................................................... 2.7
Local ........................................................... 19.8
Other ........................................................... 2.2
Total ............................................................ $ 55.9
Properties utilized by our Wireless segment consist of base transceiver stations, switching equipment and towers,
as well as leased and owned general office facilities and retail stores. We lease space for base station towers and
switch sites for our wireless network. At December 31, 2005, we had approximately 51,500 cell sites on air.
In May 2005, we closed a transaction with Global Signal under which Global Signal has exclusive rights to lease
or operate approximately 6,560 communication towers owned by us for a negotiated lease term which is the
greater of the remaining terms of the underlying ground leases or up to 32 years, assuming successful
re-negotiation of the underlying ground leases at the end of their current lease terms. We have committed to
sublease space on approximately 6,350 of the towers from Global Signal. We will maintain ownership of the
towers and will continue to reflect the towers on our consolidated balance sheet.
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