The telecommunications service provider Sprint Nextel Corporation is presently seeing a decrease in the value of its stock of about 10.4% when they closed the fourth quarter of their fiscal year with a loss of almost $30 billion from the write down on Nextel Communications Inc on their value. Nextel Communications Inc is an acquisition by Sprint Corporation last 2005.

Now, they are also experiencing a decrease in their number of subscribers for their postpaid plans. They have already lost almost 700,000 mobile phone subscribers in the fourth quarter alone and it is predicted that about more than a million more will be lost in the present quarter. On the other hand, they are gaining more subscribers for the prepaid plans and the wholesale plans. Overall, they had a net increase of 700,000 customers for the whole year of 2007 for a total of 53.8 million people with Sprint Nextel. This increase can be attributed to the steady growth in wholesale and prepaid clients.

They had more growth with the wholesale channels as compared to the prepaid channels, which comprised about three fourths of the total number of new subscribers, having 500,000 subscribers just for the quarter. In fact, even if they were able to acquire 257,000 new clients during their launch of their plan for unlimited calls by an affiliate of Boost Mobile, they also lost about 202,000 traditional prepaid subscribers.

The lesser number of postpaid customers also affected the Average Revenue Per User or ARPU of Sprint Nextel. It was at $58 for the quarter, down a dollar from the last quarter of $59, and with a big difference as compared to last year’s figure of greater than $60 for the same quarter. Prepaid customers also experienced a decrease with a value that is almost $28 for the quarter, from $30 in the previous quarter, and $32 during the previous year.

There was no change in the postpaid churn from the past quarter at 2.3%. An increase was seen for the prepaid churn from 6.2% to 7.5%.

For the quarter, Sprint Nextel had a charge of $29.7 billion for impairment on Nextel, bringing a loss of $29.5 billion. For the same period during the previous year, they had an income of $261 million net.

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