Sprint - Nextel 2006 Annual Report Download - page 3

SPRINT NEXTEL CORPORATION
SECURITIES AND EXCHANGE COMMISSION
ANNUAL REPORT ON FORM 10-K
Part I
Item 1. Business
Overview
The Corporation
Sprint Nextel Corporation, incorporated in 1938 under the laws of Kansas, is mainly a holding company, with
its operations primarily conducted by its subsidiaries. Unless the context otherwise requires, references to
“Sprint Nextel,” “we,” “us” and “our” mean Sprint Nextel Corporation and its subsidiaries. On May 17, 2006,
we spun-off to our shareholders our local communications business, which is now known as Embarq
Corporation and is comprised primarily of what was our Local segment prior to the spin-off. The results of
Embarq for periods before the spin-off are presented as discontinued operations and we have recast
information for our Wireless and Long Distance segments for the periods presented. For information regarding
our segments, see note 14 of the Notes to Consolidated Financial Statements at the end of this annual report
on Form 10-K. On August 12, 2005, a subsidiary of our company merged with Nextel Communications, Inc.
and, as a result, we acquired Nextel.
We are a global communications company offering a comprehensive range of wireless and wireline commu-
nications products and services that are designed to meet the needs of individual consumers, businesses and
government customers. We have organized our operations to meet the needs of our targeted customer groups
through focused communications solutions that can incorporate the capabilities of our wireless and wireline
services to meet their specific needs. We are one of the three largest wireless companies in the United States
based on the number of wireless subscribers. We own extensive wireless networks and a global long distance,
Tier 1 Internet backbone.
We offer digital wireless service in all 50 states, Puerto Rico and the U.S. Virgin Islands, in part through
commercial affiliation arrangements between us and third-party affiliates, each referred to as a PCS Affiliate.
We, together with the four remaining PCS Affiliates and resellers of our wholesale wireless services, served
about 53.1 million wireless subscribers at the end of 2006.
We, together with the PCS Affiliates, provide wireless code division multiple access, or CDMA, based
personal communications services, or PCS, under the Sprint»brand name. The PCS Affiliates offer digital
wireless service mainly in and around smaller U.S. metropolitan areas on wireless networks built and operated
at their expense, in most instances using spectrum licensed to and controlled by us. We also offer numerous
sophisticated data messaging, imaging, entertainment and location-based applications, marketed as Power
Vision
SM
, that utilize high-speed evolution data optimized, or EV-DO, technology.
We also offer digital wireless services under our Nextel»and Boost Mobile»brands using integrated Digital
Enhanced Network, or iDEN», technology. Both brands feature our industry-leading walkie-talkie services,
which give subscribers the ability to communicate instantly, as well as a variety of digital wireless mobile
telephone and wireless data transmission services.
We are one of the nation’s largest providers of long distance services and one of the largest carriers of Internet
traffic. We operate an all-digital long distance and Tier 1, Internet Protocol, or IP, network, over which we
provide a broad suite of wireline communications services targeted to domestic business customers, multina-
tional corporations and other communications companies. These services include domestic and international
data communications using various protocols such as multi-protocol label switching, or MPLS, technologies,
IP, asynchronous transfer mode, or ATM, frame relay, managed network services and voice services. We also
provide switching and back office services to cable companies, which enable them to provide local and long
distance telephone service over their cable facilities.
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