Sprint Nextel counts fewer than 50M subs, posts $1.6B loss : Data ARPU up $1, tops in U.S.

The song seems to be skipping, or at least stuck on repeat for Sprint Nextel Corp. The carrier released its 2008 fourth-quarter earnings today, only to reveal yet another huge loss in both customers and money. Sprint Nextel churned more than 1 million customers during the quarter – 1.1 million postpaid users and 314,000 prepaid users. This hemorrhage pushed Sprint Nextel to a new low point, counting fewer than 50 million customers. At the end of 2008, the carrier served 49.3 million subscribers.
The nation’s third-largest wireless provider also posted a $1.62 billion loss. This setback accounted for a loss of 57 cents per share. In these troubled economic times, Sprint Nextel also managed to spend more during the fourth quarter. Its capital expenditures reached $548 million, up substantially from the $485 million capex it posted during the third quarter. Churn rose slightly to 2.16% in the fourth quarter from third-quarter churn of 2.15%.
Bright spots
However, there were a few notes the carrier hit on key. Sprint Nextel paid $550 million toward its $21.6 billion debt during the fourth quarter. Further, the carrier reported a $56 postpaid average revenue per user (ARPU) and said data revenues contributed to more than $14.50 to overall postpaid ARPU. While the total ARPU was flat quarter to quarter, data ARPU was up $1 from Q3 to Q4. At $14.50, Sprint Nextel beat Verizon Wireless’s and AT&T Mobility in data ARPUs by about 50 cents and $1, respectively.
Sprint Nextel said it is taking measures to better its fortune in 2009. The carrier has made various announcements, promises, changes, etc. in hopes to alter its image and attract customers. And to save some dough, Sprint Nextel is in the process of cutting 8,000 employees. Sprint Nextel just launched Simply Everything + Mobile Broadband, a combination of its two popular plans for $10 cheaper. The carrier also has exclusive partnership to launch Palm’s new Pre device and its prepaid business, Boost Mobile, has launched a $50 a month all-you-can-eat plan to try to revitalize the its iDEN business.
To take some of the edge off, the carrier has also been pushing its efforts to improve customer service during this year. Rumors have also spread that Sprint Nextel may offload its network operations.