sprint tech summit slides 08-16-07

Kurt FawkesVice President – Investor Relations, Sprint

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

Cautionary StatementCautionary StatementThis 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 "estimate," "project," ”forecast,”"intend," "expect," "believe," "target," “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.”

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The Technology Summit

The Technology SummitGary Forsee – Chairman and CEO, Sprint

© 2007 Sprint Nextel. All rights reserved.


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 surpasses 200 million POPs

Bridging wireless networks through PowerSource

CDMA iDEN



WiMAX: The Anywhere Internet

Barry WestPresident – 4G Business Unit, Sprint

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Two Mega Trends are Driving Growth

2003 2004 2005 2006E 2007E 2008E 2009E 2010E

Bro

adba

nd D

rivin

g G

row

thB

road

band

Driv

ing

Gro

wth

Traditional Wireline Voice MinutesW

irele

ss D

rivin

g G

row

thW

irele

ss D

rivin

g G

row

th

BroadbandSubscribersBroadbandSubscribers

NarrowbandSubscribersNarrowbandSubscribers

The Wireless Broadband service will not only capture a portion of these Broadband subscribers, it will expand the current revenue

opportunity1992 -> 2008

3x GrowthIn Total Usage Wireless

Voice Minutes

GrowthComing from Wireless

1992 - 2008 2003 - 2010

CellularVoice +• E-mail• Pictures• Music• Business Apps

The mobile phone functions as the “Swiss Army Knife of Devices”

The mobile phone functions as the “Swiss Army Knife of Devices”

Broadband IP Connectivity(Internet)

High throughput, always-on access to content rich applications and services

High throughput, always-on access to content rich applications and services

Evolution centered around VOICE

Fixed Broadband Evolution Centered Around THE INTERNETTHE INTERNETDial-Up

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Traditional WirelineVoice Minutes

GrowthComing from Wireless

Wireless Driving GrowthWireless Driving Growth

1992 -> 2008 3x Growth

In Total Usage

Wireless Voice Minutes

2003 2004 2005 2006E 2007E 2008E 2009E 2010E

Broadband Driving GrowthBroadband Driving Growth

BroadbandSubscribers

NarrowbandSubscribers

Next Evolution of Internet Access

1G 2G 3G



Mobile Internet



• 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 guardbandsand multiple smaller channels

• Flatter architecture, IP network and Internet cost model provides lower-cost hardware

• More than a 10X cost/performance savings

More Capacity at Less Cost

Speed AND Capacity Define PerformanceTraditional Wireless Broadband Networks

Optimized for Voice andNarrowband Data

Next Generation Wireless Broadband Networks

Enabling Wide Range of Applications

1. Sprint’s 2.5 GHz licenses allow for higher throughput and capacity2. Two to three times as many sites required for initial coverage at 2.5 GHz compared to 700 MHz3. 10 to 15 sites required at 700 MHz for the same capacity as one Sprint site at 2.5 GHz4. FDD at 700 MHz is not finalized in any standard and product availability is unlikely before 20105. Low cost WiMAX 2.5 GHz chipsets expected in 20086. International roaming expected at 2.5 GHz; 700 MHz roaming uncertain

700 MHz vs. 2.5 GHzInterference occurs between these co-

channel cells

Lower reuse

Interference increases as distance between co-

channel cells decreases

Higher reuse

• The device is the customer

• The carrier subsidizes the device and manages the supply chain

• Contracts and cancellation penalties are required to recoup the subsidy

Mobile Internet

Embedded Model: Changing the Subsidy Paradigm

Traditional Wireless• Embedded mobile broadband• Device optimized

on a particular use• Customer buys

the devices from their retail store at non-subsidized retail prices

• Freedom to purchase a subscription, ad hoc usage, or a particular service



Top U.S. Markets by end of 2008



Early 2008BaltimoreWashington DCChicago

2009 - 2010MadisonMilwaukeeOrlandoCape CoralWest Palm BeachMiamiTucsonOklahoma CityTulsaWichitaLansingColumbusRichmondVirginia BeachToledo

2008BostonProvidenceNew YorkPhiladelphiaPittsburghClevelandCincinnatiDetroitSt. LouisKansas City

DallasAustinSan AntonioPhoenixLas VegasLos AngelesSan DiegoTampa

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

2008Presence

Optimized Visual Content

Delivery

Remote Office

Interactive, Integrated Comm.

Video Monitoring

Local Content

Gaming / Community

Stationary VoIP

Robust API’s

Video Chat

In-Car Entertainment

2009 & Beyond

Video Conferencing

Mobile/Location Advertising

Content

Security

Low Latency Device Mngt &

Rendering

Throughput

Advertising Engine

Devices

Campus Solutions, Healthcare, Real Estate

Location

Table Stakes Differentiators

Access Plans

Friend Finder





The WiMAX Ecosystem

Subscriber Equipment

Network / Infrastructure

Services, Applications & Content

WiMAX Ecosystem

Infrastructure: Motorola, Nokia, SamsungImplementation: Alcatel Lucent, Ericsson

Providers: Sprint, IBM, Google

Samsung, Nokia, ZyXEL, ZTE,

Intel, and PC OEMs

Movies

Programming

Music Videos

GamingVideo Chat

& Blog

Home MonitoringVideo Conf

RemoteSurveillance

FieldApps

CorporateIntranet

Traditional ● UMPCs ● Laptops ● Cameras ● Portable Music

● Gaming ● Inventory Tracking ● Telematics ●

Video Recorders ●Navigation

Sales, Distribution, Care & Billing

Sprint Sales, Retail, OEMs,

others; Amdocs, IBM

Affordable ServicePay as You Go, Pre-paid, or Monthly Subscription

3 Imperatives For Mobile Internet

$$

1Innovation in Distribution:• Chipsets: Single chip WiFi + WiMAX• Devices: Embed chipsets in mass market

laptops and consumer electronic devices• Distribution: Leverage consumer electronics

sales distribution channels2

Innovation Multimedia SolutionsVisual Centric, Interactive, Personal Broadband



WiMAX has Global Momentum

*Yankee Group, presented at WiMax Asia, April 2007

** Informa Telecoms & Media, March 2007

SprintSprintInukshukInukshuk

OrbitelOrbitel

SK TelecomSK TelecomBeelineBeeline

MVSMVSMovilnetMovilnet

TMNTMN

GloCommGloComm

Neo-SkyNeo-Sky

UnwiredUnwiredAUSTARAUSTAR

CTLCTL

SoftBankSoftBank

NTT DoCoMoNTT DoCoMo

KDDIKDDI

KTKT

RELIANCERELIANCE

Mobile-8Mobile-8

China unicomChina unicomBolloréBolloré

WATANIYAWATANIYA

BTBT PipexPipex

TelecomTelecom

TVATVA

TELECOM ItaliaTELECOM Italia

WorldmaxWorldmax

China MobileChina Mobile

BHARAT SANCHAR NIGAM LTD.BHARAT SANCHAR NIGAM LTD.

MAXX onairMAXX onair



ClearwireClearwire

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

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

Access to applications and content when and where you need it

Embedded Devices

Performance

Mobility




The Technology SummitKathy Walker – Chief Network Officer, Sprint



Global IP Network

Sprint is delivering SprintSpeed today across its three premier networks



Sprint is delivering SprintSpeed today across its three premier networks

Global IP NetworkIP

CDMA/EV-DO

iDEN

Convergence of products and services

VoIP/CableVoIP/Cable

Nextel Direct ConnectNextel Direct Connect

Mobile BroadbandMobile BroadbandWireless Voice

Wireless Voice

WiMAXWiMAX

MPLSMPLS



++ ++

++ ++ ++

==

Antennas & Repeaters

BTSCell PhoneTowers Backhaul

Transport IMSService

EnablersIP CoreNetwork

WiMAX

++

New Network Elements

Existing Network Elements

Augment

MSCs++ ++

Next GenServices++

Sprint’s assets add up to a faster WiMAX deployment



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 assetsGlobal IP network National platform for convergence Robust backhaul design Partnerships

The Technology SummitPaul 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



Foundation• Broader portfolio of products• Retain high value customers• Target non-traditional PTT

segments• Generate higher ARPU from base • Provide new services • Realize more synergies & close

the margin gap

Enhancing Value with

• Strong base of subscribers

• Vertical markets expertise

• Legacy knowledge • Technology leadership

Expected Benefits



Growing Cable Telephony Business

• Agreements with 12 cable MSO’s passing ~30M homes

• 60+% subscriber & revenue growth y-o-y

• Over 2M subscribers

• Annualized cable telephony revenues > $400M

• Meeting long-term expectationsYankee Group, July 2007

2005 2006 2007E 2008E 2009E 2010E 2011E



US Consumer VoIP Subscriber Forecast(millions)

15

38

Benefits to Sprint• Leadership in bundled services • Integration of services leads to

differentiated & unique customer experience

• Opportunity to sell new services

Today YE2007EMarkets Launched 20 40Homes Passed ~15M >30M

Converged Services Leadership through Pivot



Pivot service availability

WiMAX Business Offers Significant Growth Potential

Consumer Home

Business Office

Mobile Consumer

Business Portable

Ad Hoc Subscription



~ 48M Households

~4.5M Small/Home Offices

~125M Covered POPs

~130MConsumer Electronics

Devices

Market Potential by 2010Market Potential by 2010

National retail

Local retail

Indirect dealers

Wholesalers

VARs

OEM’s

Strategic Partners

BroadbandFixedPortableMobile

Value Added Services

AdvertisingCommerceEntertainmentApplications

Embedded CE Devices (OEM)

Distribution Partners

Distribution PartnersServicesServices

Scalable WiMAX BusinessExpected WiMAX Business Model vs. 3G

Cost of Service

Cost of Products

General & Administrative

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

• Sales: Significantly lower due to self-activation• 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• Bad Debt: Lower due to advance payment model

Sales & Marketing

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



Planning to spend $2.5B to cover 70M POPs by YE2008

Note 1) Represents Sprint Nextel’s expectations for its WiMAX network and does not include Clearwire build-out

Note 2) Utility of WiMAX will extend to all coverage areas built by Sprint and Clearwire

Target Customers

Cap ex / Target Customer

Peak Internet Speeds

Service Capabilities

Utility outside home

Expectations: WiMAX1

70M POPs

~$35 - 40/POP

up to 10 Mbps

Mobile videoMobile internet

Mobile voiceLocation-based

services

Full utility2

Fios U-Verse

20M homes

~$1,000/home

up to 30 Mbps up to 6 Mbps

Fixed videoFixed internetFixed voice

Fixed video Fixed internetFixed voice

none none

18M homes

~$300/home



Backhaul & Other~20%

Radio Access Network (RAN)~60%

IP Switching & IMS~20%

Capital Efficiency of 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



Financial Targets for WiMAX