The U.S. telecom market is poised for growth in 2005, said Gary Forsee, Sprint's CEO, at the company's annual investment community meeting in New York, "particularly as consumers desire more and more data applications like gaming, special ringers and video streaming and as businesses increasingly insist upon an integrated communications experience in the office and on the go."
Sprint outlined the following financial expectations for 2005:
- Sprint continues to anticipate full-year low single-digit consolidated net operating revenue growth in 2005. Wireless revenues are expected to grow at a low double-digit rate driven by an increased customer base and continued strong average customer revenue.
- Local revenues are expected to decline at a low single-digit rate as strong growth in data services are expected to be offset by lower access lines.
- Long Distance revenues are expected to decline at a low double-digit rate on continuing lower yields.
- CAPEX for full-year 2005 is expected to be $4.0 billion to $4.2 billion. Approximately $2.7 billion to $2.9 billion is expected to be invested in Wireless as Sprint upgrades its network to EV-DO (Evolution Data Optimized) technology and focuses on expanding and strengthening its network coverage, deploying new services and supporting continued customer growth. Local has targeted capital of approximately $900 million to expand DSL coverage, add new retail outlets and continue its circuit-to-packet conversion. Long distance capital expenditures are expected to be approximately $300 million and include investments to maintain current facilities and enhance the voice network.
