Sprint - Nextel 2008 Annual Report Download - page 40

Retail Post-Paid Subscribers—We lost 3.5 million net post-paid subscribers during 2009 as compared to
losing 4.1 million and 1.2 million net post-paid subscribers during 2008 and 2007, respectively. The following
table provides a reconciliation of reported net additions (losses) of retail post-paid subscribers and transfers of
subscribers between network technologies during the years ended December 31, 2009, 2008 and 2007.
CDMA Year Ended December 31,
2009 2008 2007
(in thousands)
Reported net additions (losses) ........................... (1,512) (1,634) 1,568
Net transfers from iDEN .............................. 321 1,199 1,563
Additions (losses) after transfers from iDEN ................ (1,191) (435) 3,131
iDEN Year Ended December 31,
2009 2008 2007
(in thousands)
Reported net losses .................................... (2,034) (2,439) (2,792)
Net transfers to CDMA ............................... (321) (1,199) (1,563)
Losses after transfers to CDMA .......................... (2,355) (3,638) (4,355)
The Company expects that both post-paid and total subscriber full-year net losses should improve for
the year 2010 as compared to 2009. However, our actual loss of post-paid subscribers in 2009 can be expected to
cause wireless service revenue in 2010 to be approximately $2.1 billion lower than it would have been had those
subscribers not been lost. If we continue to experience significant loss of post-paid subscribers in 2010, it would
have a significant negative impact on Sprint’s financial condition, results of operations and liquidity in 2010 and
beyond.
Prepaid Subscribers—We added approximately 2.6 million net prepaid subscribers during 2009 as
compared to losing 981,000 and adding 566,000 net prepaid subscribers in 2008 and 2007, respectively. Our net
prepaid subscriber additions in 2009 were principally driven by the Company’s National Boost Monthly
Unlimited offering on the iDEN network which was launched in the first quarter 2009. The success achieved by
the National Boost Monthly Unlimited offering has driven a significant prepaid market share gain. In conjunction
with the changing economic environment, the Company’s National Boost Monthly Unlimited offering continues
to experience strong demand as prepaid decisions are becoming a larger portion of overall decisions in the
marketplace. Net prepaid subscriber losses in 2008 as compared to net additions in 2007 were principally caused
by our attracting fewer new subscribers on the iDEN network and total deactivations increasing year over year.
End of period prepaid subscribers include subscribers engaged in certain retention programs that target qualifying
subscribers to maintain ongoing service while providing additional time to make a replenishment prior to account
deactivation. Subscribers targeted through retention programs are not included in the calculation of churn until
their offer expires without a replenishment to their account.
Wholesale and Affiliate Subscribers—Wholesale and affiliate subscribers represent customers that are
served on our networks through companies that resell our services to their subscribers, customers residing in PCS
Affiliate territories and a growing portion of subscribers from our open-device initiative primarily representing
machine-to-machine devices that utilize our network. During 2009, wholesale and affiliate subscriber losses were
138,000, compared to net subscriber additions of 472,000 and 1.4 million for 2008 and 2007, respectively.
Subscriber losses in 2009 were primarily due to a decrease in the number of subscribers with two of our large
MVNO operators.
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