Sprint - Nextel 2008 Annual Report Download - page 14

benefits, but they also require significant development and testing. We petitioned the FCC for a limited waiver of
some new CPNI rules so that we could complete development, testing and deployment of our CPNI compliance
solutions. No opposition comments were filed in response to our petition. We also continue to monitor our CPNI
compliance program and make enhancements and improvements when necessary.
Environmental Compliance
Our environmental compliance and remediation obligations relate primarily to the operation of standby
power generators, batteries and fuel storage for our telecommunications equipment. These obligations require
compliance with storage and related standards, obtaining of permits and occasional remediation. Although we
cannot assess with certainty the impact of any future compliance and remediation obligations, we do not believe
that any such expenditures will have a material adverse effect on our financial condition or results of operations.
We have identified seven former manufactured gas plant sites in Nebraska, not currently owned or
operated by us, that may have been owned or operated by entities acquired by Centel Corporation, formerly a
subsidiary of ours and now a subsidiary of CenturyLink. We and CenturyLink have agreed to share the
environmental liabilities arising from these former manufactured gas plant sites. Three of the sites are part of
ongoing settlement negotiations and administrative consent orders with the Environmental Protection Agency
(EPA). Two of the sites have had initial site assessments conducted by the Nebraska Department of
Environmental Quality (NDEQ) but no regulatory actions have followed. The two remaining sites have had no
regulatory action by the EPA or the NDEQ. Centel has entered into agreements with other potentially responsible
parties to share costs in connection with five of the seven sites. We are working to assess the scope and nature of
this responsibility, which is not expected to be material.
Patents, Trademarks and Licenses
We own numerous patents, patent applications, service marks, trademarks and other intellectual
property in the United States and other countries, including “Sprint®,” “Nextel®,” “Direct Connect®,” and “Boost
Mobile®.” Our services often use the intellectual property of others, such as licensed software, and we often
license copyrights, patents and trademarks of others, like “Virgin Mobile®.” In total, these licenses and our
copyrights, patents, trademarks and service marks are of material importance to the business. Generally, our
trademarks and service marks endure and are enforceable so long as they continue to be used. Our patents and
licensed patents have remaining terms generally ranging from one to 19 years.
We occasionally license our intellectual property to others, including licenses to others to use the
trademarks “Sprint” and “Nextel.”
We have received claims in the past, and may in the future receive claims, that we, or third parties from
whom we license or purchase goods or services, have infringed on the intellectual property of others. These
claims can be time-consuming and costly to defend, and divert management resources. If these claims are
successful, we could be forced to pay significant damages or stop selling certain products or services or stop
using certain trademarks. We, or third parties from whom we license or purchase goods or services, also could
enter into licenses with unfavorable terms, including royalty payments, which could adversely affect our
business.
Employee Relations
As of December 31, 2009, we employed approximately 40,000 personnel.
We announced cost reduction programs in January and November 2009 designed to further align our
cost structure with the reduced revenues expected from fewer subscribers. Approximately 1,200 positions from
the 2009 reductions will not be completed until 2010, and as such, are still included in the ending employee count
above.
Access to Public Filings and Board Committee Charters
Important information is routinely posted on our website at www.sprint.com. Information contained on
the website is not part of this annual report. Public access is provided to our annual reports on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to these reports filed with the
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