Thursday, October 27, 2011
Sprint Outlines High Cost of iPhone
Sprint, the third largest telco in the U.S., said its operating revenues rose 2% year-on-year to 8.3 billion US dollars in the third quarter, due to higher postpaid ARPU and growth in the number of net prepaid subscribers, partially offset by lower wireline revenues and lower wireless equipment revenues.
Sprint said that it expects to spend 11.5 billion dollars distributing the iPhone (in upgrades and handset sales) between 2011 and the end of 2015. It expects to earn 8.5 billion dollars back in profits from the iPhone over the same period. By 2014, it expects the iPhone to be a source of profits, adding 500 million dollars a year to OIBDA. source: Sprint presentation
Labels: More U.S. telecoms
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