Kurt Fawkes
Vice President – Investor Relations, Sprint
Cautionary Statement
 This presentation includes “forward-looking statements” within the meaning of the securities laws. T...
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  The Technology Summit
The Technology Summit
Gary Forsee – Chairman and CEO, Sprint
Sprint Nextel Corporation


The Technology Summit
© 2007 Sprint Nextel. All rights reserved.
“Computers in the future
                                             may weigh no more
                                  ...
“But what is it good for?”
                                             Engineer at the Advanced Computing
               ...
“We don’t like their sound,
                                             and guitar music is on the
                      ...
“More than wireless”
          • Pivot expands reach of mobility services
          • VoIP supports 2 million + cable cust...
EV-DO Rev. A                                    Bridging wireless
surpasses 200                                   networks...
The Technology Summit
© 2007 Sprint Nextel. All rights reserved.
WiMAX: The Anywhere Internet
The Technology Summit
© 2007 Sprint Nextel. All rights reserved.
The Technology Summit
                                             14
© 2007 Sprint Nextel. All rights reserved.
The Technology Summit
© 2007 Sprint Nextel. All rights reserved.
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  The Technology Summit
Barry West
President – 4G Business Unit, Sprint
Two Mega Trends are Driving Growth
                                                                          Growth
      ...
Next Evolution of Internet Access
                                                                                        ...
More Capacity at Less Cost
          • 2.5 GHz provides a balance between coverage and capacity
          • Sprint’s spect...
Speed AND Capacity Define Performance
    Traditional Wireless Broadband Networks

    Optimized for
    Voice and
    Nar...
700 MHz vs. 2.5 GHz
                       Interference occurs                   Interference increases as
               ...
Embedded Model: Changing the Subsidy Paradigm
  Traditional Wireless                                                  Mobi...
Top U.S. Markets by end of 2008
    Early 2008
    Baltimore                                                              ...
Product and Services Roadmap
                                                                                 Gaming /
   ...
The WiMAX Ecosystem


                                                                  Network / Infrastructure
         ...
3 Imperatives For Mobile Internet

                                                              Innovation Multimedia Sol...
WiMAX has Global Momentum
                                                                           Pipex
               ...
The Mobile Internet Advantage
           Embedded                          The customer gets more choice
                 ...
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  The Technology Summit
Place presentation title here




  The Technology Summit
  Kathy Walker – Chief Network Officer, Sprint
Sprint is delivering SprintSpeed today across its three premier networks




                                             ...
Sprint is delivering SprintSpeed today across its three premier networks




                                             ...
Convergence of products and services

           Wireless
           Wireless              Mobile Broadband
              ...
Sprint’s assets add up to a faster WiMAX deployment

                                                          +
         ...
Leverage scale and diversity for WiMAX backhaul




                Microwave
                AAV
                Fiber
  ...
Why Sprint will deliver WiMAX

            History of innovation
            Knowledge and experience building nationwide ...
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  The Technology Summit
The Technology Summit
Paul Saleh – Chief Financial Officer
Capital Allocation

     • Enhancing returns from operations
     • Highlighting value of our core assets
     • Capturing...
Enhancing Value with

             Foundation                                     Expected Benefits
• Strong base of      ...
Growing Cable Telephony Business
                                                                               • Agreemen...
Converged Services Leadership through Pivot

 Pivot service availability
                                             Toda...
WiMAX Business Offers Significant Growth Potential
                                                                       ...
Scalable WiMAX Business
                                                        Expected WiMAX Business Model vs. 3G


   ...
Capital Efficiency of WiMAX
                                                                                              ...
Financial Targets for WiMAX
             • $2B to $2.5B in revenues for 2010
                    – Over 80% expected to be...
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  The Technology Summit
Sprint Tech Summit Slides 08-16-07
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Sprint Tech Summit Slides 08-16-07

  1. 1. Kurt Fawkes Vice President – Investor Relations, Sprint
  2. 2. 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
  3. 3. Place presentation title here The Technology Summit
  4. 4. The Technology Summit Gary Forsee – Chairman and CEO, Sprint
  5. 5. Sprint Nextel Corporation The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  6. 6. “Computers in the future may weigh no more than 1.5 tons.” Popular Mechanics, forecasting the relentless march of science, 1949 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  7. 7. “But what is it good for?” Engineer at the Advanced Computing Systems Division of IBM, 1968, commenting on the microchip The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  8. 8. “We don’t like their sound, and guitar music is on the way out.” Decca Recording Co., rejecting the Beatles, 1962 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  9. 9. “More than wireless” • Pivot expands reach of mobility services • VoIP supports 2 million + cable customers • IP investments expand mobile convergence The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  10. 10. EV-DO Rev. A Bridging wireless surpasses 200 networks through million POPs PowerSource CDMA iDEN The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  11. 11. The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  12. 12. WiMAX: The Anywhere Internet The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  13. 13. The Technology Summit 14 © 2007 Sprint Nextel. All rights reserved.
  14. 14. The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  15. 15. Place presentation title here The Technology Summit
  16. 16. Barry West President – 4G Business Unit, Sprint
  17. 17. 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 Broadband Driving Growth opportunity 3x Growth Wireless Driving 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
  18. 18. Next Evolution of Internet Access Voice + The mobile phone The mobile phone Wireless Driving Growth Wireless Driving Growth • 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 Broadband Driving Growth Broadband Driving Growth 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  19. 19. 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  20. 20. 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
  21. 21. 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
  22. 22. 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  23. 23. 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  24. 24. 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 Technology Summit © 2007 Sprint Nextel. All rights reserved.
  25. 25. 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 © 2007 Sprint Nextel. All rights reserved.
  26. 26. 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  27. 27. 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 Technology Summit © 2007 Sprint Nextel. All rights reserved.
  28. 28. 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  29. 29. Place presentation title here The Technology Summit
  30. 30. Place presentation title here The Technology Summit Kathy Walker – Chief Network Officer, Sprint
  31. 31. Sprint is delivering SprintSpeed today across its three premier networks Global IP Network The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  32. 32. Sprint is delivering SprintSpeed today across its three premier networks Global IP Network IP CDMA/EV-DO iDEN The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  33. 33. 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
  34. 34. 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  35. 35. Leverage scale and diversity for WiMAX backhaul Microwave AAV Fiber LEC The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  36. 36. 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  37. 37. Place presentation title here The Technology Summit
  38. 38. The Technology Summit Paul Saleh – Chief Financial Officer
  39. 39. 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 The Technology Summit 40 © 2007 Sprint Nextel. All rights reserved.
  40. 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  41. 41. 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  42. 42. 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  43. 43. 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  44. 44. 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  45. 45. 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  46. 46. 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 The Technology Summit © 2007 Sprint Nextel. All rights reserved.
  47. 47. Place presentation title here The Technology Summit

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