Sprint Tech Summit Slides 08-16-07

Kurt Fawkes
Vice President – Investor Relations, Sprint

Cautionary Statement
This presentation includes “forward-looking statements” within the meaning of the securities laws. The statements in this presentation regarding the business outlook, expected performance, forward looking
guidance, continuation of our previously announced share buy-back program, as well as other statements that are not historical facts, are forward-looking statements. The words quot;estimate,quot; quot;project,quot; ”forecast,”
quot;intend,quot; quot;expect,quot; quot;believe,quot; quot;target,quot; “providing guidance” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are estimates and projections reflecting
management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking
statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, customer and network usage, customer growth and retention, pricing, operating
costs, the timing of various events and the economic environment. Future performance cannot be assured. Actual results may differ materially from those in the forward-looking statements. Some factors that could
cause actual results to differ include:
•the effects of vigorous competition, including the impact of competition on the price we are able to charge customers for services we provide and our ability to attract new customers and retain existing customers;
the overall demand for our service offerings, including the impact of decisions of new subscribers between our post-paid and prepaid services offerings and between our two network platforms; and the impact of
new, emerging and competing technologies on our business;
•the impact of overall wireless market penetration on our ability to attract and retain customers with good credit standing and the intensified competition among wireless carriers for those customers;
•the potential impact of difficulties we may encounter in connection with the integration of the pre-merger Sprint and Nextel businesses, and the integration of the businesses and assets of Nextel Partners, Inc. and
the PCS Affiliates that we have acquired, including the risk that these difficulties could prevent or delay our realization of the cost savings and other benefits we expect to achieve as a result of these integration
efforts and the risk that we will be unable to continue to retain key employees;
•the uncertainties related to the implementation of our business strategies, investments in our networks, our systems, and other businesses, including investments required in connection with our planned
deployment of a next generation broadband wireless network;
•the costs and business risks associated with providing new services and entering new geographic markets, including with respect to our development of new services expected to be provided using the next
generation broadband wireless network that we plan to deploy;
•the impact of potential adverse changes in the ratings afforded our debt securities by ratings agencies;
•the effects of mergers and consolidations and new entrants in the communications industry and unexpected announcements or developments from others in the communications industry;
•unexpected results of litigation filed against us;
•the inability of third parties to perform to our requirements under agreements related to our business operations, including a significant adverse change in Motorola, Inc.’s ability or willingness to provide handsets
and related equipment and software applications, or to develop new technologies or features for our iDEN®, network;
•the impact of adverse network performance;
•the costs of compliance with regulatory mandates, particularly requirements related to the Federal Communications Commission’s Report and Order;
•equipment failure, natural disasters, terrorist acts, or other breaches of network or information technology security;
•one or more of the markets in which we compete being impacted by changes in political or other factors such as monetary policy, legal and regulatory changes or other external factors over which we have no
control;
•and other risks referenced from time to time in our filings with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2006, in Part I, Item 1A, “Risk Factors.”

© 2007 Sprint Nextel. All rights reserved.
The Technology Summit

Place presentation title here


Gary Forsee – Chairman and CEO, Sprint

Sprint Nextel Corporation


“Computers in the future
may weigh no more
than 1.5 tons.”
Popular Mechanics, forecasting the
relentless march of science, 1949


“But what is it good for?”
Engineer at the Advanced Computing
Systems Division of IBM, 1968,
commenting on the microchip


“We don’t like their sound,
and guitar music is on the
way out.”
Decca Recording Co.,
rejecting the Beatles, 1962


“More than wireless”
• Pivot expands reach of mobility services
• VoIP supports 2 million + cable customers
• IP investments expand mobile convergence


EV-DO Rev. A Bridging wireless
surpasses 200 networks through
million POPs PowerSource

CDMA iDEN


WiMAX: The Anywhere Internet

14

Barry West
President – 4G Business Unit, Sprint

Two Mega Trends are Driving Growth
Growth
Coming from Wireless The Wireless Broadband service
will not only capture a portion of
these Broadband subscribers, it
will expand the current revenue
1992 -> 2008

Broadband Driving Growth
opportunity
3x Growth
Wireless Driving Growth

In Total Usage
Wireless
Voice Minutes

Broadband
Subscribers

Traditional Wireline
Narrowband
Voice Minutes
Subscribers
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
2003 2004 2005 2006E 2007E 2008E 2009E 2010E

1992 - 2008 2003 - 2010

Next Evolution of Internet Access
Voice +
The mobile phone
The mobile phone

• E-mail
Growth
Coming from Wireless

Cellular functions as the “Swiss
1992 -> 2008

functions as the “Swiss
3x Growth
In Total Usage

Wireless

• Pictures
Voice Minutes

Army Knife of Devices”
Army Knife of Devices”
• Music
Traditional Wireline
Voice Minutes

1992 1993 1994 199 5 1996 1997 1998 1999 2 000 2001 2 002 2003 2004 2005 200 6 2007 2008

• Business Apps
Evolution centered around VOICE
1G 2G 3G


High throughput, always-
High throughput, always-
Broadband IP Connectivity
Broadband
Subscribers

on access to content rich
on access to content rich
(Internet)
Narrowband
Subscribers

applications and services
applications and services
2003 2004 2005 2006E 2007E 2008E 2009E 2010E

Mobile
Fixed
Dial-Up
Evolution Centered Around THE INTERNET
Broadband Internet


More Capacity at Less Cost
• 2.5 GHz provides a balance between coverage and capacity
• Sprint’s spectrum holdings allow deployment of large 10 or 20MHz
channels without the inefficiencies of guardbands
and multiple smaller channels
• Flatter architecture, IP network and
Internet cost model provides
lower-cost hardware
• More than a 10X cost/performance savings


Speed AND Capacity Define Performance
Traditional Wireless Broadband Networks

Optimized for
Voice and
Narrowband
Data

Next Generation Wireless Broadband Networks
Enabling Wide
Range of
Applications

700 MHz vs. 2.5 GHz
Interference occurs Interference increases as
between these co- distance between co-
channel cells channel cells decreases

Lower reuse Higher reuse

1. Sprint’s 2.5 GHz licenses allow for higher throughput and capacity
2. Two to three times as many sites required for initial coverage at 2.5 GHz compared to 700 MHz
3. 10 to 15 sites required at 700 MHz for the same capacity as one Sprint site at 2.5 GHz
4. FDD at 700 MHz is not finalized in any standard and product availability is unlikely before 2010
5. Low cost WiMAX 2.5 GHz chipsets expected in 2008
6. International roaming expected at 2.5 GHz; 700 MHz roaming uncertain

Embedded Model: Changing the Subsidy Paradigm
Traditional Wireless Mobile Internet
• The device is • Embedded mobile broadband
the customer • Device optimized
• The carrier on a particular use
subsidizes the device • Customer buys
and manages the the devices from
supply chain their retail store
• Contracts and at non-subsidized
cancellation penalties retail prices
are required to • Freedom to purchase a subscription, ad
recoup the subsidy hoc usage, or a particular service


Top U.S. Markets by end of 2008
Early 2008
Baltimore 2009 - 2010
Washington DC Madison
Chicago Milwaukee
Orlando
2008
Cape Coral
Dallas
Boston
West Palm Beach
Austin
Providence
Miami
San Antonio
New York
Tucson
Phoenix
Philadelphia
Oklahoma City
Las Vegas
Pittsburgh
Tulsa
Los Angeles
Cleveland
Wichita
San Diego
Cincinnati
Lansing
Tampa
Detroit
Columbus
St. Louis
Richmond
Kansas City
Virginia Beach
Toledo
States in blue have at least one
Sprint launch metro area
• Map represents only the main metro areas and is not a complete depiction of the coverage. The plan is subject to change.
• 100M POPs covered by YE 2008 include coverage by Sprint and Clearwire


Product and Services Roadmap
Gaming /
Community
Video
Robust API’s Monitoring

Remote Office
Mobile/Location
Presence
Advertising
Advertising
Optimized
Engine Access Plans
Visual Content
Low
Delivery

2009 &
Device Mngt &
Latency

2008
Table Rendering Video
Conferencing
Differentiators
Throughput
Stakes Content

Beyond
Location
Stationary VoIP
Devices
Security
Interactive,
Integrated Comm. Campus Solutions,
Video Chat
Healthcare,
Real Estate
Friend Finder
In-Car
Entertainment
Local Content


The WiMAX Ecosystem

Network / Infrastructure
Infrastructure: Motorola, Nokia, Samsung
Implementation: Alcatel Lucent, Ericsson

Subscriber
Sales,
Equipment
Distribution,
WiMAX Ecosystem
Care & Billing Samsung, Nokia,
Sprint Sales, ZyXEL, ZTE,
Retail, OEMs, Intel, and PC
others; OEMs
Amdocs, IBM
Traditional ● UMPCs ● Laptops
Services, ● Cameras ● Portable Music
● Gaming ● Inventory
Applications & Content Tracking ● Telematics ●
Providers: Sprint, IBM,
Video Recorders ●
Google Navigation

Remote
Programming
Surveillance
Field
Corporate
Gaming
Apps
Intranet
Video Chat
& Blog

The Technology Summit Movies
Video Conf
Music Videos
Home Monitoring

3 Imperatives For Mobile Internet

Innovation Multimedia Solutions

1 Innovation in Distribution: Visual Centric, Interactive,

2
Personal Broadband
• Chipsets: Single chip WiFi + WiMAX
• Devices: Embed chipsets in mass market
laptops and consumer electronic devices
• Distribution: Leverage consumer electronics
sales distribution channels

3
Affordable Service
Pay as You Go, Pre-paid,
$$ or Monthly Subscription


WiMAX has Global Momentum
Pipex
Pipex SK Telecom
SK Telecom
BT
BT
Inukshuk Beeline
Inukshuk Beeline
Worldmax
Worldmax
Bolloré
Bolloré China unicom KT
China unicom KT
Neo-Sky
Neo-Sky
Clearwire MAXX onair
Clearwire MAXX onair
Sprint
Sprint China Mobile
China Mobile
TELECOM
TELECOM
TMN
TMN
Italia
Italia
NTT DoCoMo
NTT DoCoMo
WATANIYA
WATANIYA BHARAT SANCHAR
MVS
MVS BHARAT SANCHAR
CTL RELIANCE
CTL RELIANCE NIGAM LTD.
Movilnet
Movilnet NIGAM LTD. KDDI
KDDI
Orbitel
Orbitel
SoftBank
SoftBank
TVA
TVA
AUSTAR
AUSTAR
Mobile-8
Mobile-8
Unwired
Unwired
GloComm
GloComm
Telecom
*Yankee Group, presented at WiMax Asia, April 2007
Telecom
** Informa Telecoms & Media, March 2007


The Mobile Internet Advantage
Embedded The customer gets more choice
at lower cost and with greater ease-of-use
Devices

Enables mass market use of high bandwidth
Performance applications with a much better user experience

Access to applications and content when and
Mobility
where you need it


Place presentation title here

Kathy Walker – Chief Network Officer, Sprint

Sprint is delivering SprintSpeed today across its three premier networks

Global IP Network


Sprint is delivering SprintSpeed today across its three premier networks

Global IP Network
IP
CDMA/EV-DO
iDEN


Convergence of products and services

Wireless
Wireless Mobile Broadband
Mobile Broadband
Voice
Voice

VoIP/
VoIP/
Cable
Cable

WiMAX
WiMAX

Nextel Direct Connect
MPLS Nextel Direct Connect
MPLS

Sprint’s assets add up to a faster WiMAX deployment

+
+ + + +
Cell Phone
Antennas & Backhaul
BTS MSCs
Towers
Repeaters

Next Gen
+
IP Core Service
+ +
+
Transport Services
IMS
Network Enablers

New Network Elements
WiMAX
=
Existing Network Elements
Augment


Leverage scale and diversity for WiMAX backhaul

Microwave
AAV
Fiber
LEC


Why Sprint will deliver WiMAX

History of innovation
Knowledge and experience building nationwide networks from the ground up
Existing tower assets
Global IP network
National platform for convergence
Robust backhaul design
Partnerships


Paul Saleh – Chief Financial Officer

Capital Allocation

• Enhancing returns from operations
• Highlighting value of our core assets
• Capturing value through share buyback
• Allocating capital to generate high return on investment
– PTT on CDMA, Cable VoIP, Pivot, WiMAX

40

Enhancing Value with

Foundation Expected Benefits
• Strong base of • Broader portfolio of products
subscribers • Retain high value customers
• Vertical markets • Target non-traditional PTT
expertise segments
• Legacy knowledge • Generate higher ARPU from base
• Technology leadership • Provide new services
• Realize more synergies & close
the margin gap


Growing Cable Telephony Business
• Agreements with 12 cable MSO’s
US Consumer VoIP Subscriber Forecast
(millions)
passing ~30M homes
38

• 60+% subscriber & revenue
growth y-o-y
• Over 2M subscribers
15

• Annualized cable telephony
revenues > $400M
• Meeting long-term expectations
2005 2006 2007E 2008E 2009E 2010E 2011E
Yankee Group, July 2007


Converged Services Leadership through Pivot

Pivot service availability
Today YE2007E
Markets Launched 20 40
Homes Passed ~15M >30M

Benefits to Sprint
• Leadership in bundled services
• Integration of services leads to
differentiated & unique customer
experience
• Opportunity to sell new services


WiMAX Business Offers Significant Growth Potential
Distribution
Distribution
Services
Services
Market Potential by 2010
Market Potential by 2010
Partners
Partners
~ 48M
Consumer Home Broadband National retail
Households Fixed
Portable Local retail
Business Office Mobile
~4.5M
Indirect dealers
Small/Home Offices Value Added
Services Wholesalers
Advertising
Mobile Consumer ~125M Commerce
VARs
Covered POPs Entertainment
Business Portable Applications
OEM’s
Embedded CE
~130M
Ad Hoc Subscription
Strategic Partners
Devices (OEM)
Consumer Electronics
Devices


Scalable WiMAX Business
Expected WiMAX Business Model vs. 3G

• Spectrum: Substantially wider carriers; high capacity network
Cost of Service • Radio Access Network (RAN): About 25% lower cost per carrier
• Backhaul: Mix of microwave, LEC and alternatives

Cost of Products • Subsidy: Low subsidy driven by open standard and scale of embedded device model

• Sales: Significantly lower due to self-activation
Sales & Marketing • Fulfillment: Lower due to embedded model
• Marketing: Similar costs supported by eco-system partners to drive mass market adoption

• Care: Similar care cost structure except for OEM devices
General &
Administrative • Bad Debt: Lower due to advance payment model


Capital Efficiency of WiMAX
WiMAX1 Fios U-Verse
Expectations:
Planning to spend $2.5B
to cover 70M POPs by YE2008 Target Customers 70M POPs 20M homes 18M homes

Cap ex / Target Customer ~$35 - 40/POP ~$1,000/home ~$300/home

IP Switching & IMS Backhaul & Other Peak Internet Speeds up to 10 Mbps up to 30 Mbps up to 6 Mbps
~20% ~20%
Mobile video
Fixed video Fixed video
Mobile internet
Service Capabilities Fixed internet Fixed internet
Mobile voice
Fixed voice Fixed voice
Location-based
services

Full utility2
Utility outside home none none

Radio Access Network (RAN) Note 1) Represents Sprint Nextel’s expectations for its WiMAX network and does not include Clearwire build-out
~60% Note 2) Utility of WiMAX will extend to all coverage areas built by Sprint and Clearwire


Financial Targets for WiMAX
• $2B to $2.5B in revenues for 2010
– Over 80% expected to be generated from new lines of business
– Significant ramp in revenue expected beyond 2010

• Positive adjusted OIBDA in 2010
• Capital investment
– Cumulative spend of approximately $2.5B through 2008; covering ~70M POPs
– Cumulative spend of approximately $5B through 2010; covering ~125M POPs

• Positive free cash flow in 2011


Sprint Tech Summit Slides 08-16-07

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (8)

Similaire à Sprint Tech Summit Slides 08-16-07

Similaire à Sprint Tech Summit Slides 08-16-07 (20)

Dernier

Dernier (20)

Sprint Tech Summit Slides 08-16-07