Sprint Reports First Quarter 2013 Results

  Sprint Reports First Quarter 2013 Results

  *Operating Income of $29 million, includes accelerated depreciation of
    approximately $360 million; Adjusted OIBDA* of $1.5 billion up over 25
    percent year-over-year, highest year-over-year increase in more than 6
    years
  *Sprint platform wireless service revenue of $7.1 billion is the
    highest-ever and increased nearly 9 percent year-over-year
  *Best-ever Sprint platform postpaid ARPU of $63.67 grew nearly 2 percent
    year-over-year
  *Sprint platform subscriber base reaches highest-ever level of 53.9 million

       *Sprint platform postpaid net additions for the 12th consecutive
         quarter
       *Postpaid Nextel recapture rate of 46 percent
       *Highest-ever total prepaid subscribers at 16 million

  *Strong smartphone sales of 5 million

       *iPhone^® sales exceed 1.5 million with 43 percent to new customers
       *86 percent of quarterly Sprint platform postpaid handset sales were
         smartphones

  *Network Vision continues to gain momentum

       *Exceeded target of 12,000 sites on air by the end of the quarter, and
         currently have more than 13,500 sites on air
       *Nextel network on track to be shut down at the end of the second
         quarter

The company’s first quarter 2013 earnings conference call will be held at 8
a.m. ET today. Participants may dial 800-938-1120 in the U.S. or Canada
(706-634-7849 internationally) and provide the following ID: 29196505 or may
listen via the Internet at www.sprint.com/investors.

Additional information about results can be found in the “Quarterly Investor
Update” posted on our Investor Relations website at www.sprint.com/investors.

Business Wire

OVERLAND PARK, Kan. -- April 24, 2013

Sprint Nextel Corp. (NYSE: S) today reported operating income of $29 million,
and Adjusted OIBDA* of $1.5 billion was the highest in nearly four years even
as Sprint made significant investments in the business during the quarter.
Sprint reported continued strong growth in the Sprint platform business,
reaching highest-ever subscriber base and service revenue levels in the first
quarter of 2013.

“This is a transformative year for Sprint and we’ve gotten off to a good
start,” said Dan Hesse, Sprint CEO. “Record Sprint platform service revenue
and subscriber levels fueled our performance. We achieved significant Adjusted
OIBDA* growth while investing heavily to improve our network, expanding our 4G
LTE footprint and offering customers the best smartphones with truly unlimited
data plans.”

EPS and Operating Income Improve

Operating income for the quarter was $29 million as compared to a loss of $255
million in the year-ago period. Consolidated net service revenues of nearly $8
billion were flat year-over-year as Sprint platform growth offset declines in
Nextel platform and Wireline revenues. The company reported a net loss of $643
million and a diluted net loss of $.21 per share for the first quarter of 2013
as compared to a net loss of $863 million and a diluted net loss of $.29 per
share in the first quarter of 2012.

Adjusted OIBDA* Improves By Over 25 Percent Year-Over-Year

Quarterly Adjusted OIBDA* of $1.5 billion was the highest in nearly four years
and improved by $311 million as compared to the first quarter of 2012.
Adjusted OIBDA* improved year-over-year primarily due to growth in Sprint
platform service revenue, lower cost of service and lower SG&A expense,
partially offset by lower Nextel revenue.

Sprint Platform Achieves Record Revenue, ARPU and Subscribers

Sprint platform service revenue reached best-ever levels in the first quarter
driven by all-time high postpaid ARPU and subscribers for the Sprint platform.
Sprint platform postpaid ARPU grew by more than $1 year-over-year. Postpaid
subscriber growth on the platform continued to benefit from better than
expected recapture rates of Nextel customers as well as improved postpaid
churn. Additionally, all three of the Sprint platform prepaid brands achieved
net additions in the quarter and each reached highest-ever subscriber levels.

Unlimited Data and Iconic Smartphones Continue to Drive Growth

Eighty-six percent of quarterly Sprint platform postpaid handset sales were
smartphones, including more than 1.5 million iPhones sold during the quarter.
Forty-three percent of iPhone sales were to new customers, a rate that
continues to outperform larger competitors.

Sprint continued to enhance its smartphone portfolio – launching HTC One^®
earlier this month and announcing plans to offer Samsung Galaxy S^® 4 in the
next few weeks as well as BlackBerry^® Q10 and two Windows 8 phones later this
year.

Network Vision Deployment Gains Momentum

Sprint made significant progress on the Network Vision deployment in the
quarter, exceeding 12,000 sites on air during the first quarter. To date there
are more than 13,500 sites on air compared to more than 8,000 reported on Feb.
7. The number of sites that are either ready for construction, already
underway or completed has grown to more than 25,000.

As part of Network Vision, Sprint has launched 4G LTE in 88 cities, including
Los Angeles, Boston and Charlotte, N.C. since the beginning of the year and
expects that 4G LTE will be available in more than 170 additional cities in
the coming months.

The company remains on track to shut down the Nextel platform at the end of
the second quarter.

Third Parties Recognize Sprint Leadership

For the fourth time in a row, J.D. Power & Associates ranked Sprint highest in
satisfaction with the purchase experience among Full Service Wireless
Providers. Additionally, Sprint’s Boost Mobile prepaid brand was ranked
highest in satisfaction with the purchase experience among Non-Contract
Wireless Providers. Sprint also received U.S. Long-Haul Wholesale Carrier
Excellence from ATLANTIC-ACM in the Brand, Network Performance, Customer
Service and Voice Quality categories. Finally, Sprint collected the North
American Mobile & Wireless Green Excellence Award from Frost & Sullivan.

Forecast

The company expects 2013 Adjusted OIBDA* to be at the high-end of the previous
forecast of between $5.2 billion and $5.5 billion excluding the effects of the
closing of strategic transactions.

                                                              
Wireless Operating
Statistics
(Unaudited)
                                             
                           Quarter To Date
                           3/31/13           12/31/12         3/31/12
Net Additions
(Losses) (in
thousands)
Sprint platform:
Postpaid ^ (2)                  12               401              263
Prepaid ^ (3)                   568              525              870
Wholesale and                 (224     )      (243     )      785      
affiliate
Total Sprint                    356              683              1,918
platform
Nextel platform:
Postpaid ^ (2)                  (572     )       (644     )       (455     )
Prepaid ^ (3)                 (199     )      (376     )      (381     )
Total Nextel                    (771     )       (1,020   )       (836     )
platform
                                                              
Total retail                    (560     )       (243     )       (192     )
postpaid net losses
Total retail prepaid            369              149              489
net additions
Total wholesale and
affiliate net (losses)         (224     )      (243     )      785      
additions
Total Wireless Net            (415     )      (337     )      1,082    
(Losses) Additions
                                                              
End of Period
Subscribers (in
thousands)
Sprint platform:
Postpaid ^ (2)                  30,257           30,245           28,992
Prepaid ^ (3)                   15,701           15,133           13,698
Wholesale and                 7,938          8,162          8,003    
affiliate
Total Sprint                    53,896           53,540           50,693
platform
Nextel platform:
Postpaid ^ (2)                  1,060            1,632            3,830
Prepaid ^ (3)                 255            454            1,580    
Total Nextel                    1,315            2,086            5,410
platform
                                                              
Total retail
postpaid end of                 31,317           31,877           32,822
period subscribers
Total retail prepaid
end of period                   15,956           15,587           15,278
subscribers
Total wholesale and
affiliate end of period        7,938          8,162          8,003    
subscribers
Total End of Period           55,211         55,626         56,103   
Subscribers
                                                              
Supplemental Data -
Connected Devices
End of Period
Subscribers (in
thousands)
Retail postpaid                 824              813              791
Wholesale and                 2,803          2,670          2,217    
affiliate
Total                         3,627          3,483          3,008    
                                                              
Churn
Sprint platform:
Postpaid                        1.84     %       1.98     %       2.00     %
Prepaid                         3.05     %       3.02     %       2.92     %
Nextel platform:
Postpaid                        7.57     %       5.27     %       2.09     %
Prepaid                         12.46    %       9.79     %       8.73     %
                                                              
Total retail                    2.09     %       2.18     %       2.01     %
postpaid churn
Total retail prepaid            3.26     %       3.30     %       3.61     %
churn
                                                              
ARPU ^(a)
Sprint platform:
Postpaid                   $    63.67        $   63.04        $   62.55
Prepaid                    $    25.95        $   26.30        $   25.64
Nextel platform:
Postpaid                   $    35.43        $   37.27        $   40.94
Prepaid                    $    31.75        $   35.59        $   35.68
                                                              
Total retail               $    62.47        $   61.47        $   59.88
postpaid ARPU
Total retail prepaid       $    26.08        $   26.69        $   26.82
ARPU
                                                              
Nextel Platform
Subscriber
Recaptures
Subscribers (in
thousands) ^(4):
Postpaid                        264              333              228
Prepaid                         67               188              137
Rate ^(5):
Postpaid                        46       %       51       %       46       %
Prepaid                         34       %       50       %       23       %
                                                              
^(a) ARPU is calculated by dividing service revenue by the sum of the average
number of subscribers in the applicable service category. Changes in average
monthly service revenue reflect subscribers for either the postpaid or prepaid
service category who change rate plans, the level of voice and data usage, the
amount of service credits which are offered to subscribers, plus the net
effect of average monthly revenue generated by new subscribers and
deactivating subscribers.


                                                             
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (Unaudited)
(Millions, except per Share
Data)
                                    
                                    Quarter To Date
                                    3/31/13      12/31/12      3/31/12
                                                                     
Net Operating Revenues            $ 8,793     $ 9,005      $ 8,734 
Net Operating Expenses
Cost of services                      2,640           2,659            2,787
Cost of products                      2,293           2,993            2,298
Selling, general and                  2,336           2,557            2,436
administrative
Depreciation and amortization         1,492           1,493            1,666
Other, net                         3          8           (198  )
Total net operating expenses       8,764      9,710       8,989 
Operating Income (Loss)            29         (705   )     (255  )
Interest expense                      (432  )         (432   )         (298  )
Equity in losses of
unconsolidated investments and      (202  )     (140   )     (273  )
other, net
Loss before Income Taxes              (605  )         (1,277 )         (826  )
Income tax expense                 (38   )     (44    )     (37   )
Net Loss                          $ (643  )    $ (1,321 )    $ (863  )
                                                                     
Basic and Diluted Net Loss        $ (0.21 )    $ (0.44  )    $ (0.29 )
Per Common Share
Weighted Average Common               3,013           3,007            2,999
Shares outstanding
Effective Tax Rate                 -6.3  %     -3.4   %     -4.5  %
                                                                             

                                                           
NON-GAAP RECONCILIATION -
NET LOSS TO ADJUSTED OIBDA*
(Unaudited)
(Millions)
                                                
                                            Quarter To Date
                               3/31/13      12/31/12      3/31/12 
                                                                   
Net Loss                    $ (643    )    $ (1,321   )    $ (863    )
Income tax expense           38           44            37      
Loss before Income              (605    )         (1,277   )         (826    )
Taxes
Equity in losses of
unconsolidated investments      202               140                273
and other, net
Interest expense             432          432           298     
Operating Income (Loss)      29           (705     )     (255    )
Depreciation and             1,492        1,493         1,666   
amortization
OIBDA*                       1,521        788           1,411   
Severance and lease             25                (10      )         -
exit costs ^(6)
Gains from asset
dispositions and                -                 -                  (29     )
exchanges ^ (7)
Asset impairments and           -                 18                 18
abandonments ^(8)
Spectrum hosting
contract termination,           -                 -                  (170    )
net ^(9)
Access costs ^ (10)             -                 -                  (17     )
Litigation ^(11)                (22     )         -                  -
Business combinations           -                 19                 -
^(12)
Hurricane Sandy ^(13)        -            45            -       
Adjusted OIBDA*              1,524        860           1,213   
Capital expenditures         1,812        1,923         800     
^(1)
Adjusted OIBDA* less        $ (288    )    $ (1,063   )    $ 413     
Capex
                                                                   
Adjusted OIBDA Margin*          19.1    %         10.7     %         15.2    %
                                                                   
                                                                   
Selected item:
Deferred tax asset            $ 265             $ 546              $ 348
valuation allowance
                                                                   

                                                            
WIRELESS STATEMENTS OF
OPERATIONS (Unaudited)
(Millions)
                                                    
                                    Quarter To Date
                                    3/31/13       12/31/12       3/31/12
Net Operating Revenues
Service revenue
Sprint platform:
Postpaid ^(2)                       $ 5,773         $ 5,674          $ 5,408
Prepaid ^(3)                          1,194           1,170            1,016
Wholesale, affiliate and         133        135         103   
other
Total Sprint platform            7,100      6,979       6,527 
Nextel platform:
Postpaid ^(2)                         143             218              500
Prepaid ^(3)                     33         68          188   
Total Nextel platform            176        286         688   
                                                                     
Equipment revenue                813        1,010       735   
Total net operating              8,089      8,275       7,950 
revenues
                                                                     
Net Operating Expenses
Cost of services                      2,171           2,210            2,289
Cost of products                      2,293           2,993            2,298
Selling, general and                  2,230           2,436            2,311
administrative
Depreciation and                      1,393           1,391            1,564
amortization
Other, net                       -          3           (181  )
Total net operating              8,087      9,033       8,281 
expenses
Operating Income (Loss)         $ 2         $ (758   )    $ (331  )
                                                                     
Supplemental Revenue Data
Total retail service                $ 7,143         $ 7,130          $ 7,112
revenue
Total service revenue               $ 7,276         $ 7,265          $ 7,215
                                                                     
                                                                     
                                                                     
WIRELESS NON-GAAP
RECONCILIATION (Unaudited)
(Millions)
                                    
                                    Quarter To Date
                                    3/31/13       12/31/12       3/31/12
                                                                     
Operating Income (Loss)             $ 2             $ (758   )       $ (331  )
Severance and lease exit              22              (10    )         -
costs ^(6)
Gains from asset
dispositions and exchanges            -               -                (29   )
^ (7)
Asset impairments and                 -               13               18
abandonments ^(8)
Spectrum hosting contract             -               -                (170  )
termination, net ^(9)
Litigation ^(11)                      (22   )         -                -
Hurricane Sandy ^(13)                 -               42               -
Depreciation and                 1,393      1,391       1,564 
amortization
Adjusted OIBDA*                  1,395      678         1,052 
Capital expenditures ^(1)        1,706      1,786       710   
Adjusted OIBDA* less Capex      $ (311  )    $ (1,108 )    $ 342   
                                                                     
Adjusted OIBDA Margin*                19.2  %         9.3    %         14.6  %
                                                                             

                                                               
WIRELINE STATEMENTS OF OPERATIONS
(Unaudited)
(Millions)
                                                       
                                        Quarter To Date
                                        3/31/13      12/31/12     3/31/12
Net Operating Revenues
Voice                                   $ 352          $ 385          $ 417
Data                                      94             96             108
Internet                                  434            451            453
Other                                 13        17        20   
Total net operating revenues          893       949       998  
                                                                      
Net Operating Expenses
Costs of services and products            661            671            716
Selling, general and                      104            100            121
administrative
Depreciation                              98             102            100
Other, net                            3         5         (17  )
Total net operating expenses          866       878       920  
Operating Income                     $ 27       $ 71       $ 78   
                                                                      
                                                                      
WIRELINE NON-GAAP RECONCILIATION
(Unaudited)
(Millions)
                                        
                                        Quarter To Date
                                        3/31/13      12/31/12     3/31/12
                                                                      
Operating Income                        $ 27           $ 71           $ 78
Severance and lease exit costs            3              -              -
^(6)
Asset impairments and                     -              5              -
abandonments ^(8)
Access costs ^ (10)                       -              -              (17  )
Hurricane Sandy ^(13)                     -              3              -
Depreciation                          98        102       100  
Adjusted OIBDA*                       128       181       161  
Capital expenditures ^(1)             61        58        45   
Adjusted OIBDA* less Capex           $ 67       $ 123      $ 116  
                                                                      
Adjusted OIBDA Margin*                    14.3 %         19.1 %         16.1 %
                                                                             

                                                              
CONDENSED CONSOLIDATED CASH
FLOW INFORMATION (Unaudited)
(Millions)
                                  
                                  Quarter Ended
                                  3/31/13        12/31/12       3/31/12
Operating Activities
Net loss                          $ (643   )       $ (1,322 )       $ (863   )
Depreciation and                    1,492            1,493            1,666
amortization
Provision for losses on             83               148              136
accounts receivable
Share-based compensation            17               25               17
expense
Deferred income taxes               24               67               32
Equity in losses of
unconsolidated investments          202              140              273
and other, net
Contribution to pension plan        -                -                (92    )
Spectrum hosting contract           -                -                (170   )
termination, net ^ (9)
Other working capital               (276   )         (322   )         26
changes, net
Other, net                       41          (13    )     (47    )
Net cash provided by             940         216         978    
operating activities
                                                                    
Investing Activities
Capital expenditures ^(1)           (1,381 )         (1,477 )         (783   )
Expenditures relating to FCC        (55    )         (46    )         (56    )
licenses
Change in short-term                355              (1,165 )         (327   )
investments, net
Investment in Clearwire             (80    )         (100   )         (128   )
(including debt securities)
Other, net                       3           (2     )     (1     )
Net cash used in investing       (1,158 )     (2,790 )     (1,295 )
activities
                                                                    
Financing Activities
Proceeds from debt and              204              5,599            2,000
financings
Debt financing costs                (10    )         (44    )         (36    )
Repayments of debt and              (59    )         (2,283 )         (2     )
capital lease obligations
Other, net                       7           8           3      
Net cash provided by             142         3,280       1,965  
financing activities
                                                                    
Net (Decrease) Increase in          (76    )         706              1,648
Cash and Cash Equivalents
                                                                    
Cash and Cash Equivalents,       6,351       5,645       5,447  
beginning of period
                                                                    
Cash and Cash Equivalents,        $ 6,275          $ 6,351          $ 7,095
end of period
                                                                    
                                                                    
RECONCILIATION TO CONSOLIDATED
FREE CASH FLOW* (NON-GAAP)
(Unaudited)
(Millions)
                                  
                                  Quarter Ended
                                  3/31/13        12/31/12       3/31/12
                                                                    
Net Cash Provided by              $ 940            $ 216            $ 978
Operating Activities
                                                                    
Capital expenditures ^(1)           (1,381 )         (1,477 )         (783   )
Expenditures relating to FCC        (55    )         (46    )         (56    )
licenses, net
Other investing activities,      3           (2     )     (1     )
net
Free Cash Flow*                  (493   )     (1,309 )     138    
                                                                    
Debt financing costs                (10    )         (44    )         (36    )
Increase in debt and other,         145              3,316            1,998
net
Investment in Clearwire             (80    )         (100   )         (128   )
(including debt securities)
Other financing activities,      7           8           3      
net
Net (Decrease) Increase in
Cash, Cash Equivalents and       $ (431   )    $ 1,871      $ 1,975  

Short-Term Investments
                                                                             

                                                             
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Millions)
                                                                   
                                                 3/31/13         12/31/12
Assets
Current assets
Cash and cash equivalents                        $ 6,275           $ 6,351
Short-term investments                             1,494             1,849
Accounts and notes receivable,                     3,352             3,658
net
Device and accessory inventory                     843               1,200
Deferred tax assets                                1                 1
Prepaid expenses and other                   804          700     
current assets
Total current assets                               12,769            13,759
                                                                   
Investments and other assets                       1,611             1,833
Property, plant and equipment,                     14,025            13,607
net
Goodwill                                           359               359
FCC licenses and other                             20,722            20,677
Definite-lived intangible                    1,271        1,335   
assets, net
Total                                       $ 50,757      $ 51,570  
                                                                   
Liabilities and Shareholders'
Equity
Current liabilities
Accounts payable                                 $ 2,963           $ 3,487
Accrued expenses and other                         5,176             5,008
current liabilities
Current portion of long-term debt,             428          379     
financing and capital lease obligations
Total current liabilities                          8,567             8,874
                                                                   
Long-term debt, financing and                      24,072            23,962
capital lease obligations
Deferred tax liabilities                           7,131             7,047
Other liabilities                            4,513        4,600   
Total liabilities                            44,283       44,483  
                                                                   
Shareholders' equity
Common shares                                      6,026             6,019
Paid-in capital                                    47,026            47,016
Accumulated deficit                                (45,459 )         (44,815 )
Accumulated other comprehensive              (1,119  )     (1,133  )
loss
Total shareholders' equity                   6,474        7,087   
Total                                       $ 50,757      $ 51,570  
                                                                   
                                                                   
NET DEBT* (NON-GAAP) (Unaudited)
(Millions)
                                                                             
                                                 3/31/13         12/31/12
                                                                   
Total Debt                                       $ 24,500          $ 24,341
Less: Cash and cash equivalents                    (6,275  )         (6,351  )
Less: Short-term investments                 (1,494  )     (1,849  )
Net Debt*                                   $ 16,731      $ 16,141  
                                                                             

SCHEDULE OF DEBT                    
(Unaudited)
(Millions)
                                                                   3/31/13
ISSUER                                    COUPON     MATURITY      PRINCIPAL
Sprint Nextel
Corporation
Export Development
Canada Facility (Tranche                  4.196%     12/15/2015    $ 500
2)
6% Senior Notes due 2016                  6.000%     12/01/2016    2,000
9.125% Senior Notes due                   9.125%     03/01/2017    1,000
2017
8.375% Senior Notes due                   8.375%     08/15/2017    1,300
2017
9% Guaranteed Notes due                   9.000%     11/15/2018    3,000
2018
1% Convertible Bond due                   1.000%     10/15/2019    3,100
2019
7% Guaranteed Notes due                   7.000%     03/01/2020    1,000
2020
7% Senior Notes due 2020                  7.000%     08/15/2020    1,500
11.5% Senior Notes due                    11.500%    11/15/2021    1,000
2021
9.25% Debentures due                      9.250%     04/15/2022    200
2022
6% Senior Notes due 2022               6.000%     11/15/2022    2,280
Sprint Nextel                                                 16,880
Corporation
                                                                   
Sprint Capital
Corporation
6.9% Senior Notes due                     6.900%     05/01/2019    1,729
2019
6.875% Senior Notes due                   6.875%     11/15/2028    2,475
2028
8.75% Senior Notes due                 8.750%     03/15/2032    2,000
2032
Sprint Capital                                                6,204
Corporation
                                                                   
iPCS Inc.
First Lien Senior Secured                 2.424%     05/01/2013    300
Floating Rate Notes due 2013
Second Lien Senior
Secured Floating Rate                  3.549%     05/01/2014    181
Notes due 2014
iPCS Inc.                                                     481
                                                                   
EKN Secured Equipment                     2.030%     03/30/2017    445
Facility
                                                                   
Tower financing                           9.500%     01/15/2030    697
obligation
Capital lease                                    2014 - 2022   70
obligations and other
TOTAL PRINCIPAL                                               24,777
                                                                   
Net discount from
beneficial conversion                                              (238)
feature on convertible
bond
Net discounts                                                 (39)
TOTAL DEBT                                                    $ 24,500
                                                                   
Supplemental
information:
The Company had $1.5 billion of borrowing capacity available under our
unsecured revolving bank credit facility as of March 31, 2013. Our unsecured
revolving bank credit facility expires in February 2018. The company is
currently limited by a restriction of debt incurrence in one of our debt
issuances which has limited our available borrowing capacity to the $1.5
billion mentioned above under our revolving credit facility.

In May 2012, certain of our subsidiaries entered into a $1.0 billion secured
equipment credit facility to finance equipment-related purchases for Network
Vision. The facility is equally divided into two consecutive tranches of $500
million, with the drawdown availability contingent upon Sprint's acquisition
of equipment-related purchases from Ericsson, up to the maximum of each
tranche, ending on May 31, 2013 and May 31, 2014, for the first and second
tranche, respectively. Interest and principal are payable semi-annually with a
final maturity of March 2017 for both tranches.
                                                                   


NOTES TO THE FINANCIAL INFORMATION (Unaudited)
      
      Capital expenditures is an accrual based amount that includes the
      changes in unpaid capital expenditures and excludes capitalized
      interest. Cash paid for capital expenditures includes total capitalized
^(1)  interest of $15 million for the first quarter of 2013, and $9 million
      and $115 million for the fourth and first quarters of 2012,
      respectively, and can be found in the Condensed Consolidated Cash Flow
      Information and the Reconciliation to Free Cash Flow*.
      
      Postpaid subscribers on the Sprint platform are defined as retail
      postpaid subscribers on the CDMA network, including subscribers with
^(2)  PowerSource devices, and those utilizing WiMax and LTE technology.
      Postpaid subscribers on the Nextel platform are defined as retail
      postpaid subscribers on the iDEN network.
      
      Prepaid subscribers on the Sprint platform are defined as retail prepaid
      subscribers and session-based tablet users who utilize CDMA and WiMax
^(3)  technology via our multi-brand offerings. Prepaid subscribers on the
      Nextel platform are defined as retail prepaid subscribers who utilize
      iDEN technology.
      
      Nextel Subscriber Recaptures are defined as the number of subscribers
      that deactivated service from the postpaid or prepaid Nextel platform,
      as applicable, during each period but remained with the Company as
^(4)  subscribers on the postpaid or prepaid Sprint platform, respectively.
      Subscribers that deactivate service from the Nextel platform and
      activate service on the Sprint platform are included in the Sprint
      platform net additions for the applicable period.
      
      The Postpaid and Prepaid Nextel Recapture Rates are defined as the
^(5)  portion of total subscribers that left the postpaid or prepaid Nextel
      platform, as applicable, during the period and were retained on the
      postpaid or prepaid Sprint platform, respectively.
      
^(6)  Severance and lease exit costs are primarily associated with workforce
      reductions and with exit costs associated with the Nextel platform.
      
^(7)  For the first quarter of 2012, gains from asset dispositions and
      exchanges are primarily due to spectrum exchange transactions.
      
      For the fourth quarter of 2012, asset impairment and abandonment
      activity of $18 million is primarily related to network asset equipment
^(8)  in our Wireless segment, no longer necessary for management's strategic
      plans. The first quarter of 2012 includes $18 million related to a
      change in our backhaul architecture in connection to our Network Vision
      design from microwave to a more cost effective fiber backhaul.
      
      On March 16, 2012, we elected to terminate the arrangement with
      LightSquared LP and LightSquared, Inc. (LightSquared). As we have no
      future service obligations with respect to the arrangement with
^(9)  LightSquared, we recognized $236 million of the advanced payments as
      other operating income in the first quarter of 2012. As a result of the
      termination of the hosting agreement, we impaired capitalized costs
      specific to LightSquared's 1.6 GHz spectrum that the company no longer
      intends to deploy which totaled $66 million.
      
      Favorable developments during the first quarter of 2012 relating to
^(10) disagreements with local exchange carriers resulted in a reduction in
      expected access costs of $17 million.
      
      For the first quarter of 2013, litigation activity is primarily a result
^(11) of favorable developments in connection with a tax (non-income) related
      contingency.
      
      For the fourth quarter of 2012, included in selling, general and
^(12) administrative expenses are fees paid to unrelated parties necessary for
      the proposed transactions with SoftBank and our acquisition of
      Clearwire.
      
      Hurricane Sandy charges for the fourth quarter of 2012, represent
^(13) estimated hurricane-related charges of $45 million, consisting of
      customer credits, incremental roaming costs, network repairs and
      replacements.
      

*FINANCIAL MEASURES

Sprint Nextel provides financial measures determined in accordance with
accounting principles generally accepted in the United States (GAAP) and
adjusted GAAP (non-GAAP). The non-GAAP financial measures reflect industry
conventions, or standard measures of liquidity, profitability or performance
commonly used by the investment community for comparability purposes. These
measurements should be considered in addition to, but not as a substitute for,
financial information prepared in accordance with GAAP. We have defined below
each of the non-GAAP measures we use, but these measures may not be synonymous
to similar measurement terms used by other companies.

Sprint Nextel provides reconciliations of these non-GAAP measures in its
financial reporting. Because Sprint Nextel does not predict special items that
might occur in the future, and our forecasts are developed at a level of
detail different than that used to prepare GAAP-based financial measures,
Sprint Nextel does not provide reconciliations to GAAP of its forward-looking
financial measures.

The measures used in this release include the following:

OIBDA is operating income/(loss) before depreciation and amortization.
Adjusted OIBDA is OIBDA excluding severance, exit costs, and other special
items. Adjusted OIBDA Margin represents Adjusted OIBDA divided by
non-equipment net operating revenues for Wireless and Adjusted OIBDA divided
by net operating revenues for Wireline. We believe that Adjusted OIBDA and
Adjusted OIBDA Margin provide useful information to investors because they are
an indicator of the strength and performance of our ongoing business
operations, including our ability to fund discretionary spending such as
capital expenditures, spectrum acquisitions and other investments and our
ability to incur and service debt. While depreciation and amortization are
considered operating costs under GAAP, these expenses primarily represent
non-cash current period costs associated with the use of long-lived tangible
and definite-lived intangible assets. Adjusted OIBDA and Adjusted OIBDA Margin
are calculations commonly used as a basis for investors, analysts and credit
rating agencies to evaluate and compare the periodic and future operating
performance and value of companies within the telecommunications industry.

Free Cash Flow is the cash provided by operating activities less the cash used
in investing activities other than short-term investments and amounts included
as investments in Clearwire during the period. We believe that Free Cash Flow
provides useful information to investors, analysts and our management about
the cash generated by our core operations after interest and dividends, if
any, and our ability to fund scheduled debt maturities and other financing
activities, including discretionary refinancing and retirement of debt and
purchase or sale of investments.

Net Debt is consolidated debt, including current maturities, less cash and
cash equivalents, short-term investments and if any, restricted cash. We
believe that Net Debt provides useful information to investors, analysts and
credit rating agencies about the capacity of the company to reduce the debt
load and improve its capital structure.

SAFE HARBOR

This release includes “forward-looking statements” within the meaning of the
securities laws. The words “may,” “could,” “should,” “estimate,” “project,”
“forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan,”
“providing guidance,” and similar expressions are intended to identify
information that is not historical in nature. All statements that address
operating performance, events or developments that we expect or anticipate
will occur in the future — including statements relating to network
performance, subscriber growth, and liquidity, and statements expressing
general views about future operating results — are 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, development and deployment of new technologies;
efficiencies and cost savings of multimode technologies; customer and network
usage; customer growth and retention; service, coverage and quality;
availability of devices; the timing of various events and the economic
environment. 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 when made. Sprint Nextel undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. In addition,
forward-looking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from our company's historical
experience and our present expectations or projections. Factors that might
cause such differences include, but are not limited to, those discussed in the
company’s Annual Report on Form 10-K for the year ended December 31, 2012. You
should understand that it is not possible to predict or identify all such
factors. Consequently, you should not consider any such list to be a complete
set of all potential risks or uncertainties.

Clearwire’s first quarter 2013 results from operations have not yet been
finalized. As a result, the amount reflected for Sprint’s share of Clearwire’s
results of operations for the quarter ended March 31, 2013, is an estimate
and, based upon the finalization of Clearwire’s results, may need to be
revised if our estimate materially differs from Clearwire’s actual results.
Changes in our estimate, if any, would affect the carrying value of our
investment in Clearwire, net loss, basic and diluted net loss per common
share, and comprehensive loss but would have no effect on Sprint’s operating
income, OIBDA*, Adjusted OIBDA* or consolidated statement of cash flows.

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline
communications services bringing the freedom of mobility to consumers,
businesses and government users. Sprint Nextel served more than 55 million
customers at the end of the first quarter 2013 and is widely recognized for
developing, engineering and deploying innovative technologies, including the
first wireless 4G service from a national carrier in the United States;
offering industry-leading mobile data services, leading prepaid brands
including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant
national and international push-to-talk capabilities; and a global Tier 1
Internet backbone. The American Customer Satisfaction Index rated Sprint No. 1
among all national carriers in customer satisfaction and most improved, across
all 47 industries, during the last four years. Newsweek ranked Sprint No. 3 in
both its 2011 and 2012 Green Rankings, listing it as one of the nation’s
greenest companies, the highest of any telecommunications company. You can
learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and
www.twitter.com/sprint.

LTE is a trademark of ETSI. Other marks are the property of their respective
owners.

Contact:

Sprint Nextel Corp.
Media Relations
Scott Sloat, 240-855-0164
scott.sloat@sprint.com
or
Investor Relations
Brad Hampton, 800-259-3755
investor.relations@sprint.com
 
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