Sprint - Nextel 2010 Annual Report Download - page 40
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CURRENT BUSINESS OUTLOOK
We endeavor to both add new and retain our existing wireless subscribers in order to reverse the net loss in postpaid
wireless subscribers that we have experienced. We expect to improve our subscriber trends by continuing to improve the
customer experience and through offers which provide value, simplicity and productivity.
Given the current economic environment, the difficulties the economic uncertainties create in forecasting, as well as
the inherent uncertainties in predicting future customer behavior, we are unable to forecast with assurance the net retail
postpaid subscriber results we will experience during 2011 or thereafter. However, the Company expects postpaid subscriber
net additions for the full year 2011 and to improve total wireless subscriber net additions in 2011, as compared to 2010.
Our net subscriber losses have significantly reduced our revenue and operating cash flow. These effects will continue
if we do not continue to attract new subscribers and/or reduce our rate of churn. See “Effects on our Wireless Business of
Postpaid Subscriber Losses” above for a discussion of how our subscriber trends will impact our segment earnings trends. Also,
subscriber losses will further decrease our adjusted EBITDA, as defined by our revolving bank credit facility. Management
implemented cost reduction programs designed to decrease our cost structure by reducing our labor and other costs; however,
we do not expect that the reduction in costs will fully offset the revenue declines described above.
The above discussion is subject to the risks and other cautionary and qualifying factors set forth under “—Forward-
Looking Statements” and Part I, Item 1A “Risk Factors” in this report.
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