Sprint PCS Chief Executive Officer Andrew Sukawaty declared his company now has the largest
digital wireless footprint in the United States as the company ended 1998 having recorded $2.9 billion in capital
expenditures.
The nationwide personal communications services carrier added a record number 836,000 customers
during the fourth quarter, attributing the success to its extensive distribution channels-about 8,000 retail outlets-an
increasing assortment of Code Division Multiple Access handsets, strong seasonal selling and rapid buildout of the
carrier’s markets. Total subscribers for 1998 was 2.59 million.
“We are up to the challenges of 1999. We have
completed major market buildouts in the first quarter,” said Sukawaty. “We will expand coverage in our
own markets and through affiliates and roaming agreements as needed … We are well positioned to make solid
operating profits (in 1999).”
The company said it expects to double the size of its customer base by the end of
this year to 5 million customers and break even in the second half of 2000. Sprint PCS expects capex spending of $2.5
billion next year.
Revenues totaled $437 million in the fourth quarter and $1.23 billion for the year.
Recurring
losses per share for the fourth quarter were $1.51 per share and $4.50 per share for the year. The losses include an 8-
cents per share extraordinary charge related to early debt retirement. Operating losses were $849 million for the quarter
and $2.39 billion for the year, excluding a nonrecurring charge of $179 million for acquired in-process research and
development related to Sprint Corp.’s acquisition of the remaining interest in Sprint PCS.
Sprint purchased the
remaining ownership interests in Sprint PCS from Tele-Communications Inc., Cox Communications Inc. and Comcast
Corp. in November, in exchange for special low-vote PCS shares and warrants for additional PCS shares.
Sprint
PCS’s average revenue per user was $55 for the quarter, slightly below the year’s average of $56, said the carrier. For
the quarter, acquisition cost per subscriber was in the low $500 range, while churn was 3 percent. The company
attributed its churn rate to network coverage issues>
