Sprint - Nextel 2007 Annual Report Download - page 7

branding, advertising, merchandising and technology-related opportunities, many of which are exclusive with
NASCAR, its drivers and teams, and the racetrack facilities. We also are the official telecommunications service
provider of the National Football League, or NFL, and the provider of exclusive and original NFL-related content
as part of our Sprint-branded wireless service. The goal of these initiatives, together with our other marketing
initiatives, which include affiliations with most major sports leagues, is to increase brand awareness in our
targeted customer base and expand the use of our customer-convenient distribution channels: web sales, telesales
and retail stores.
We added about 1.6 million net post-paid subscribers on the CDMA network in 2007; however, we have
experienced a continued decline in the number of new CDMA post-paid subscribers in the fourth quarter 2007.
Competitive marketing conditions including increased advertising and promotions among our competitors have
contributed to the decline in the number of new customers. Churn of CDMA customers improved slightly in
2007 as compared to 2006; however, our post-paid churn remains high relative to our competitors.
We have experienced declines in the number of new iDEN post-paid subscribers in recent quarters and we
lost about 2.8 million net post-paid subscribers of iDEN-based services during 2007. Consumer sentiment
regarding the iDEN network, reduced marketing programs and limited new handset offerings at higher than
market prices have all contributed to the decline in new iDEN customers. Capacity constraints in certain markets
on the iDEN network have improved in recent quarters due to fewer subscribers and investments we have made
to improve the network.
Our customer management organization works to improve our customer’s experience, with the goal of
retaining subscribers of our wireless services. Customer service call centers, some of which are operated by us
and some of which are operated by independent contractors, receive and respond to inquiries from customers. We
have implemented initiatives that are designed to improve call center processes and procedures, including those
related to customer satisfaction ratings with respect to customer care and first call resolution. As of December 31,
2007, about 72% of our direct post-paid subscriber base is managed on a single billing platform, which we
believe has increased functionality for our customer care representatives and has the potential to enhance the
customer experience. We expect to convert our remaining post-paid subscribers in the first half 2008.
Wireless Network Technologies
CDMA Network
We provide our Sprint-branded post-paid, Boost Mobile branded prepaid and wholesale wireless services
over our CDMA network, an all-digital wireless network with spectrum licenses that allow us to provide service
in all 50 states, Puerto Rico and the U.S. Virgin Islands. The CDMA network uses a single frequency band and a
digital spread-spectrum wireless technology that allows a large number of users to access the band by assigning a
code to all voice and data bits, sending a scrambled transmission of the encoded bits over the air and
reassembling the voice and data into its original format.
We, together with the PCS Affiliates, operate CDMA networks in 360 metropolitan markets, including 341
of the 349 largest U.S. metropolitan areas, where more than 271 million people live or work. We provide
nationwide service through a combination of:
• operating our own digital network in both major and smaller U.S. metropolitan areas and rural
connecting routes using CDMA technology;
• affiliations under commercial arrangements with the PCS Affiliates; and
• roaming on other providers’ networks.
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