Robert W. Baird & Co.
2006 Growth Stock Conference
Mark Angelino
President, Business Solutions
2
Cautionary Statement
This presentation includes “forward
-
looking statements” within the meaning of the securities laws. The statements in this presen
tation regarding
the business outlook, expected performance, as well as other statements that are not historical facts, are forward
-
looking state
ments. The words
"estimate," "project," ”forecast,” "intend," "expect," "believe," "target," “providing guidance” and similar expressions are
int
ended 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 fr
om
those suggested by
the forward
-
looking statements. With respect to these forward
-
looking statements, management has made assumptions regarding, am
ong other
things, customer and network usage, customer growth and retention, pricing, operating costs, the timing of various events and
th
e economic
environment.
Future performance cannot be ensured. Actual results may differ materially from those in the forward
-
looking statements. Some
factors that
could cause actual results to differ include:
•
the uncertainties related to the benefits of the merger with Nextel including anticipated synergies and cost savings and the
tim
ing thereof;
•
the potential impact of difficulties Sprint Nextel may encounter in connection with the integration of the pre
-
merger Sprint and
Nextel businesses,
and the integration of the businesses and assets of certain of the PCS Affiliates that we have acquired to intend to acquire
and
Nextel Partners,
Inc.;
•
The impact of the spin
-
off of Sprint Nextel’s local communications business;
•
the effects of vigorous competition, the overall demand for Sprint Nextel’s service offerings including the impact of decisio
ns
of new subscribers
between Sprint Nextel’s post paid and pre paid service offerings and between its two network platforms and the impact of new,
em
erging and
competing technologies, on its business;
•
the costs and business risks associated with providing new services and entering new geographic markets;
•
the impact of any adverse change in the ratings assigned to Sprint Nextel’s debt securities by ratings agencies;
•
the ability of Wireless to continue to grow and improve profitability;
•
the ability of its Long distance segment to retain customers and achieve expected revenues;
•
the effects of mergers and consolidations in the telecommunications industry and unexpected announcements or developments fro
m o
thers in the
telecommunications industry;
•
the uncertainties related to Sprint Nextel’s investments in networks, systems and other businesses;
•
the uncertainties related to the implementation of Sprint Nextel’s business strategies,
•
unexpected results of litigation filed against Sprint Nextel;
•
a significant adverse change in Motorola Inc’s ability or willingness to provide handsets and related equipment and software
app
lications or to
develop new technologies or features for the iDEN network;
•
adverse network performance, including any performance issues resulting from the reconfiguration of the 800 megahertz band co
nte
mplated by
the Federal Communications Commission’s (FCC) report and Order;
•
the costs of compliance with regulatory mandates, particularly requirements related to the FCC’s Report and Order and deploym
ent
of enhanced
911 services on the iDEN network;
•
equipment failure, natural disasters, terrorist acts, or other breaches of network or information technology security;
•
the inability of supplies or other third parties to perform to requirements under agreements related to Sprint Nextel’s busin
ess
operations;
•
one or more of the markets in which Sprint Nextel competes being impacted by changes in political or other factors such as mo
net
ary policy, legal
and regulatory changes or other external factors or natural disasters over which Sprint Nextel has no control; and
•
other risks referenced from time to time in Sprint Nextel’s filings with the Securities and Exchange Commission (SEC), includ
ing
Sprint Nextel’s
Form 10
-
K for the year ended December 31, 2005 , as amended, and Sprint Nextel’s Form 10
-
Q for the quarter ended March 31, 2006.
Sprint Nextel believes these forward
-
looking statements are reasonable; however, you should not place undue reliance on forward
-
looking
statements, which are based on current expectations and speak only as of the date of this release. Sprint Nextel is not oblig
ate
d to publicly release
any revisions to forward
-
looking statements to reflect events after the date of this release.
3
2006 Priorities and Key Business Initiatives
Customer Experience
Product Leadership
Synergies
Profitable Growth
Differentiated Sales & Care
Process Automation
Mobile Broadband & MPLS
Advanced Mobile Applications
Revenues Expense
Management
Expanding Market
Opportunities
Sprint Priorities
Key Initiatives
4
Current Addressable Market
Substantial Market Opportunity
Business
Mobile, $41
Business
Internet, $24
Consumer
Mobile, $98
Consumer
Internet, $25
Business
LD, $46
Consumer
LD, $17
Consumer
$140B
Business
$112B
Total
$252B
Estimated 2006 Consumer & Business
Spending on LD, Internet & Mobile
Profitable
Growth
Customer
Experience
Product
Leadership
Synergies
5
20%
50%
Enterprise
Mid-Market
SMB
Expanding Market Opportunities
Rising Telecom Service Spending*
Wireless As % of Telecom Service
Spending (2006E)*
(in Billions)
$134
$156
$180
* Source: In
-
Stat, 2005
2004
2006E
2008E
SMB
Mid-Market
Enterprise
Converged networks and mobile applications
are expanding the wireless frontier
Profitable
Growth
Customer
Experience
Product
Leadership
Synergies
6
General
Business
System
Integrators /
Alliances
Public Sector
Enterprise
Sprint Business Solutions
Top accounts
Wholesale
International
Federal,
State & Local
Gov’t
Utilities
Education
Health care
Small/SOHO
Mid
-
market
Sell to/
through/with
Strategic
Partners
Customer
Service
Solutions
Engineering
Post
-
sales
support and
customer
care
Complex
network &
solutions
deployment
Customer
-
Focused Organization
Industry
-
Leading Wireless & Wireline Solutions
Profitable
Growth
Customer
Experience
Product
Leadership
Synergies
7
Differentiated Go
-
to
-
Market Distribution
Strategy
SBS Channel Mix
Direct
•
Differentiated sales approach
o
Customer segment focus
o
Industry, Telecom & IT expertise
o
Local Branch & HQ model for greatest
customer reach
•
Sales productivity
o
Salesforce.com
o
Compensation & organizational design
•
CDMA/iDEN
Indirect
•
Channel development & expansion
o
Compensation
o
Exclusivity
o
Quality subscriber growth
•
CDMA/iDEN
System Integrators/Alliances
•
Sell to/sell through/sell with world
-
class
partners
SBS Direct Sales Rep Mix
Direct
Indirect
Enterprise
General
Business
Public
Sector
Profitable
Growth
Customer
Experience
Product
Leadership
Synergies
8
Superior Customer Experience
Customer Segment
focus
Differentiated
Strategic Care model
Churn Reduction
o
Investing to create seamless experience
o
Process automation
o
Proactive retention programs
Profitable
Growth
Customer
Experience
Product
Leadership
Synergies
9
4Q05
1Q06
Strategic Growth Platforms
4X
2005
2006E
Mobile Broadband Gross Adds
+80%
MPLS Ports
2005
2006E
>3x
4Q05
1Q06
+50%
Profitable
Growth
Customer
Experience
Product
Leadership
Synergies
10
PEERLESS IP & GLOBAL MPLS
HIGH
-
PERFORMANCE
PUSH
-
TO
-
TALK
INDUSTRY
-
LEADING
MOBILE BROADBAND
Fleet & Supply Chain
Management
Field/Sales Force
Automation
Public Sector
Find & Navigate
Sprint Mobile Locator™
Sprint Precision Locator™
Advanced Mobile Applications Enabled by Converged
Networks
Profitable
Growth
Customer
Experience
Product
Leadership
Synergies
11
2006 EVDO Roadmap
EVDO PDAs with Modem
-
Capability
1H
-
2006
2H
-
2006
Wireless Routers
EVDO Rev A Mobile Broadband card with GPS
USB Mobile Broadband Card (Rev A)
Expanded embedded laptop
PCI Express cards (Rev A)
EVDO Rev A services
Profitable
Growth
Customer
Experience
Product
Leadership
Synergies
12
Realize Synergies
Realizing incremental revenue opportunities
Capturing scale efficiencies
Streamlining policies
Optimizing distribution
2006E SBS Synergy Targets
2008E SBS Synergy Targets
Revenue
Sales Expense
Marketing & Care
$270M
(~27% of Total)
Profitable
Growth
Customer
Experience
Product
Leadership
Synergies
$460M
(~23% of Total)
Enter the password to open this PDF file:
File name:
-
File size:
-
Title:
-
Author:
-
Subject:
-
Keywords:
-
Creation Date:
-
Modification Date:
-
Creator:
-
PDF Producer:
-
PDF Version:
-
Page Count:
-
Preparing document for printing…
0%
Σχόλια 0
Συνδεθείτε για να κοινοποιήσετε σχόλιο