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sprint nextel Quarterly Presentations 2006 2nd
sprint nextel Quarterly Presentations 2006 2nd
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sprint nextel Quarterly Presentations 2006 2nd

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  18. 18. 7; 9 ,= 47 .! Sprint Power VisionSM Wireless Data ARPU Wireless Data Revenue Subscribers $900 1,200 $8 14% 12% $750 900 $6 (thousands) (millions) 10% $600 600 8% $4 300 $450 6% $2 4% 0 $300 2Q05 2Q06 4Q05 1Q06 2Q06 2Q05 2Q06 Data ARPU % of Reported ARPU 4 - - * * +' 4 * -' - 7 $ < 4= = #;? ) -O $= 4L = #;? ) -O $= ! quot;#
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  36. 36. 300 (millions) Long Corporate & For the Quarter Ended June 30, 2006 Consolidated Wireless Distance Eliminations $ 712 $ 660 $ 155 $ (103) Operating Income (loss) Special items (a) Restructuring and asset impairments 40 33 7 - Merger and integration expense 113 - - 113 865 693 162 10 Adjusted Operating Income* Depreciation and amortization 2,354 2,242 113 (1) 3,219 2,935 275 9 Adjusted OIBDA* Capital expenditures 1,359 1,064 200 95 $ 1,860 $ 1,871 $ 75 $ (86) Adjusted OIBDA* less Capex Pro forma For the Quarter Ended June 30, 2005 Wireless $ 690 Operating Income (loss) Special items Restructuring and asset impairments 19 Merger and integration expense - 709 Adjusted Operating Income* Depreciation and amortization 1,932 2,641 Adjusted OIBDA* Capital expenditures 1,586 $ 1,055 Adjusted OIBDA* less Capex ! quot;# >
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  38. 38. 300 (millions) Quarter Ended Year-to-date June 30, June 30, June 30, June 30, 2006 2005 2006 2005 Wireless Pro Forma Adjusted OIBDA* $ 2,935 $ 2,641 $ 5,622 $ 4,973 Service, wholesale, affiliate and other net operating revenues 7,800 7,153 15,485 13,994 Adjusted OIBDA margin* 37.6% 36.9% 36.3% 35.5% Operating income $ 660 $ 690 $ 1,096 $ 1,119 Operating income margin 8.5% 9.6% 7.1% 8.0% Long Distance Adjusted OIBDA* $ 275 $ 262 $ 511 $ 518 Total net operating revenues 1,641 1,722 3,310 3,437 Adjusted OIBDA margin* 16.8% 15.2% 15.4% 15.1% Operating income $ 155 $ 132 $ 259 $ 271 Operating income margin 9.4% 7.7% 7.8% 7.9% ! quot;# @
  39. 39. 300 Year-to-Date June 30, June 30, 2006 2005 $ 6,163 $ 2,943 Adjusted OIBDA* Adjust for special items (267) (58) Proceeds from communications towers lease transactions - 1,195 Other operating activities, net (a) (1,259) (128) Capital expenditures (2,913) (1,314) Dividends paid (150) (373) Proceeds from sales of assets 157 211 Other investing activities, net (141) 525 Free Cash Flow* 1,590 3,001 Decrease in debt, net (3,963) (1,015) Retirement of redeemable preferred stock (247) - 6,268 - Proceeds from spin-off of Embarq, net Discontinued operations activity, net (b) 346 15 (9,755) - Purchase of PCS Affiliates, Nextel Partners and Velocita, net of cash acquired Change in restricted cash (892) Investments in debt securities, net 1,037 (85) Proceeds from common stock issued 326 106 Other financing activities, net - 27 $ (5,290) $ 2,049 Change in cash and equivalents - GAAP June 30, 2006 Total Debt $ 23,301 Less: Cash on hand (3,613) Less: Restricted Cash (1,124) Less: Current marketable securities (712) $ 17,852 Net Debt* (a) Other operating activities, net includes the change in working capital, change in deferred income taxes, miscellaneous operating activities and non-operating items in net income (loss). (b) Discontinued operations activity, net includes $6.6 billion from the issuance of long-term debt. ! quot;# @B

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