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Sprint Nextel 3Q Loss Grows on Subscriber Losses By David Twiddy October 30, 2009 6:28AM     Sprint, which hasn't reported a quarterly net gain in subscribers in more than two years, continues trying to regain ground in a highly competitive market. Besides investing heavily in improving its customer service efforts, the company has beefed up its portfolio of high-tech smartphones, including Palm's Pre, to better compete with Apple.   Related Topics Sprint Nextel ATT Verizon Earnings iPhone Apple Latest News Plasma-TV Ban Could Be Costly Barnes & Noble Nook Is Delayed Flat PC Shipments Hurt Dell's Stock Ballmer Says Windows 7 Sales Good New Pogoplug 'Cloud' Gets Social Sprint Nextel Corp., the nation's third-largest wireless carrier, on Thursday reported a wider third-quarter loss and a larger exodus of customers despite an improved slate of phones and cheaper rates. Sprint, which hasn't reported a quarterly net gain in subscribers in more than two years, continues trying to regain ground in a highly competitive market. Besides investing heavily in improving its customer service efforts, the company has beefed up its portfolio of high-tech smartphones, including Palm Inc.'s Pre, in a bid to better compete with the likes of Apple Inc.'s iPhone, now sold by AT&T Inc. It also has tried to undercut its competitors on price, offering unlimited mobile-to-mobile calls. The company said it lost $478 million, or 17 cents per share during the three-month period ending Sept. 30. By comparison, it lost $326 million, or 11 cents per share, during the same period a year ago. Sprint's latest quarter included $15 million in severance costs, $97 million in equity losses connected to its investment in Clearwire Corp. and $53 million in gains from spectrum exchanges and access charge agreements. The company did not provide an earnings figure excluding items. Analysts surveyed by Thomson Reuters, who typically exclude one-time items from their estimates, expected a loss of 15 cents per share. Revenue during the quarter slipped 9 percent to $8.04 billion from $8.8 billion, below the $8.09 billion expected by analysts. Wireless revenue declined 8 percent as the company shed a net of 545,000 wireless subscribers, including 801,000 so-called postpaid customers who sign annual contracts and tend to spend the most. It was larger than the 257,000 net subscribers lost in the second quarter, but it was an improvement on the postpaid front as the company lost 991,000 last quarter. Sprint lost 1.3 million total subscribers during the third quarter of 2008. During a conference call with analysts, CEO Dan Hesse said that Sprint's efforts to beat competitors on price are gaining some traction with new customers, saying the company posted its best quarter in several years for gross additions, or subscriber growth before disconnects. "We had some successes in the third quarter but we still have much progress to make," he said. Some analysts weren't impressed, noting that bringing in those new customers, many of whom opted for heavily subsidized smartphones, hurt the company's bottom line. "Sprint threw everything and the kitchen sink (read 'marketing dollars') at effecting a turnaround" during the third quarter, Craig Moffett of Bernstein Research wrote in a note to clients. "And for all that, they succeeded only in making the rock roll downhill a bit more slowly." (continued...) 1  |  2  |  Next Page >   © 2009 Associated Press/AP Online under contract with YellowBrix. All rights reserved.   Advertisement  Wireless Tech 1.   Palm Pixi Is Stylish But Sluggish 2.   TV on the Go Is a Little Lacking 3.   AT&T Fires Back at Verizon with Ad 4.   Court To Hear AT&T, Verizon Ad Fight 5.   Verizon: AT&T Wants To Hide 3G Truth Dell Will Debut Mini 3 in China, Brazil Android-powered phone is a big step. Average Rating: Palm Pixi Is Stylish But Sluggish Smartphone's charm quickly wears off. Average Rating: TV on the Go Is a Little Lacking Programming pickings are slim. Average Rating:

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Flat Shipments Hurt Dell Despite Increased Earnings Dell's earnings are up and expectations are solid, but the company's stock still took a hit after analysts signaled the company isn't playing a key role in the PC market recovery.   Smartphones: A Bigger Target for Security Threats Smartphones are increasingly prevalent and adept at handling more tasks, including trading stocks, paying bills, and buying stuff online. That makes them attractive to thieves and hackers.   FBI Says Hackers Targeting Law Firms, PR Companies Hackers are targeting law firms and public relations companies with a sophisticated e-mail scheme that breaks into their computer networks to steal sensitive data, often linked to large corporate clients.

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