(ii) After the merger with Nextel, Sprint’s customer service deteriorated, which led to net losses in subscribers, particularly amongst dissatisfied iDEN subscribers. (i) Sprint experienced technical issues with Nextel’s iDEN network that resulted poor service and customer dissatisfaction. Sprint’s iDEN subscribers have declined from about 16.6 million in 2005 to about 7.3 million in 2009 primarily due to two factors: IDEN Subscribers Declined 50% in Four Years We estimate that about 47% of the $4.31 Trefis price for Sprint’s stock can be attributed to its Mobile Plans and Phones business, which includes the contribution from Sprint’s voice service to CDMA and iDEN subscribers. Push-to-talk service has been popular amongst safety workers (paramedics, firefighters, security personnel) and outdoor professions (construction, repair). Integrated Digital Enhanced Network (or iDEN) refers to push-to-talk technology, which Sprint acquired after merging with Nextel in 2005. Sprint’s postpaid subscribers mainly consist of CDMA and iDEN subscribers. IDEN is Push-to-Talk Mobile Phone Service However, Sprint’s iDEN subscriber numbers have declined in recent years and we expect such declines to continue. Sprint’s iDEN push-to-talk subscribers have historically been an important part of the company’s postpaid busines. Sprint ( S) competes with mobile operators like AT&T ( T) and Verizon ( VZ) in the postpaid business where mobile phone subscribers pay a recurring monthly fee for mobile service.
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