Sprint - Nextel 2008 Annual Report Download - page 3

SPRINT NEXTEL CORPORATION
SECURITIES AND EXCHANGE COMMISSION
ANNUAL REPORT ON FORM 10-K
PART I
Item 1. Business
OVERVIEW
Sprint Nextel Corporation, incorporated in 1938 under the laws of Kansas, is mainly a holding company,
with its operations primarily conducted by its subsidiaries. Our Series 1 voting common stock trades on the New
York Stock Exchange (NYSE) under the symbol “S.” Sprint Nextel Corporation and its subsidiaries (“Sprint,”
“we,” “us,” “our” or the “Company”) is a communications company offering a comprehensive range of wireless
and wireline communications products and services that are designed to meet the needs of individual consumers,
businesses, government subscribers and resellers. Our operations are organized to meet the needs of our targeted
subscriber groups through focused communications solutions that incorporate the capabilities of our wireless and
wireline services. We are the third largest wireless communications company in the United States based on the
number of wireless subscribers, one of the largest providers of wireline long distance services and one of the
largest carriers of Internet traffic in the nation. Our services are provided through our ownership of extensive
wireless networks and a global long distance, Tier 1 Internet backbone.
We offer wireless and wireline voice and data transmission services to subscribers in all 50 states,
Puerto Rico and the U.S. Virgin Islands under the Sprint corporate brand which includes our retail brands
consisting of Sprint®, Nextel®, Boost Mobile®, Virgin Mobile®and Assurance WirelessSM on networks that
utilize code division multiple access (CDMA), integrated Digital Enhanced Network (iDEN), or internet protocol
(IP) technologies. We utilize these networks to offer our wireless and wireline subscribers differentiated products
and services whether through the use of a single network or a combination of these networks. Through our
partnership with Clearwire Corporation and its subsidiary Clearwire Communications LLC (together
“Clearwire”), and their development of a fourth generation (4G) network utilizing Worldwide Interoperability for
Microwave Access (WiMAX) technology, we are establishing ourselves as a leader in the deployment of next-
generation wireless broadband services. We offer wireless services on a post-paid and prepaid payment basis to
retail subscribers and also on a wholesale basis.
On November 9, 2009, we entered into an investment agreement with Clearwire to contribute an
additional $1.176 billion increasing our ownership percentage to 56% as of December 31, 2009 and enhancing
Clearwire’s ability to further its 4G network buildout. To strengthen our position in the growing prepaid market,
we completed our acquisition of Virgin Mobile USA, Inc. (VMU) on November 24, 2009. In addition, on
December 4, 2009, we completed the acquisition of iPCS, Inc. (iPCS). iPCS was previously a Sprint PCS
affiliate that sold services under the Sprint®brand name and in Sprint-branded stores.
Our Business Segments
Our business consists of two reportable segments: Wireless and Wireline. For information regarding our
segments, see “Part II, Item 7 Management’s Discussion and Analysis of Financial Condition and Results of
Operations” and also refer to note 15 of the Notes to Consolidated Financial Statements.
Wireless
We provide certain wireless services on our third generation (3G) network and our national push-to-talk
network. Through our mobile virtual network operator (MVNO) relationship with Clearwire, we are also the first
and only nationwide wireless carrier to offer 4G services. Sprint 4G is available in 27 markets serving more than
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