Sprint CFO Says Last Year's Initiatives Taking Hold

NEW YORK -(Dow Jones)- The actions that Sprint Nextel took last year to improve the quality of its customer base are taking hold, said Chief Financial Officer Paul Saleh.

Backing his comments from Wednesday's quarterly earnings conference call, Saleh said during a Monday analyst meeting hosted by Raymond James that he believes net customer growth will return in the second quarter and quicken through the year. He added he wanted to see the rate of turnover fall below 2% by the end of the year.

While 60% of last quarter's gross customer additions were prime customers, Sprint also saw a decline in sub-prime customers.

Sprint has taken steps to tighten its credit policy and is pushing out lower income or credit-risk customers. The move coincides with a decline in subscriber growth in the last quarter.

Saleh said he expects Sprint to be the first to market with WiMax technology, or wireless fidelity spread over a wider range.

The executive also said the company is comfortable with its spectrum position, and he doesn't believe Sprint will need to acquire anymore in the next government auction. "Our spectrum position overall is significant," he said. "We don't need it."

-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 5th March 2007