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OSDL Meetings Oct 10-12

Sprint and Technology Ecosystems

Brian Coughlin
Sr Technology Strategist
Sprint Technology Development

August 10-12, 2006
Cautionary Statement
This presentation includes “forward-looking statements” within the meaning of the securities laws. The statements in this presentation regarding the business outlook, expected performance,
as well as other statements that are not historical facts, are forward-looking statements. The words quot;estimate,quot; quot;project,quot; ”forecast,” quot;intend,quot; quot;expect,quot; quot;believe,quot; quot;target,quot; “providing guidance”
and similar expressions are intended to identify forward-looking statements. Forward-looking statements are estimates and projections reflecting management's judgment based on currently
available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect
to these forward-looking statements, management has made assumptions regarding, among other things, customer and network usage, customer growth and retention, pricing, operating
costs, the timing of various events and the economic environment.

Future performance cannot be ensured. Actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include:
the uncertainties related to the benefits of the merger with Nextel including anticipated synergies and cost savings and the timing thereof;
the potential impact of difficulties Sprint Nextel may encounter in connection with the integration of the pre-merger Sprint and Nextel businesses, and the integration of the businesses and
assets of certain of the PCS Affiliates that we have acquired to intend to acquire and Nextel Partners, Inc.;
The impact of the spin-off of Sprint Nextel’s local communications business;
the effects of vigorous competition, the overall demand for Sprint Nextel’s service offerings including the impact of decisions of new subscribers between Sprint Nextel’s post paid and pre paid
service offerings and between its two network platforms and the impact of new, emerging and competing technologies, on its business;
the costs and business risks associated with providing new services and entering new geographic markets;
the impact of any adverse change in the ratings assigned to Sprint Nextel’s debt securities by ratings agencies;
the ability of Wireless to continue to grow and improve profitability;
the ability of its Long distance segment to retain customers and achieve expected revenues;
the effects of mergers and consolidations in the telecommunications industry and unexpected announcements or developments from others in the telecommunications industry;
the uncertainties related to Sprint Nextel’s investments in networks, systems and other businesses;
the uncertainties related to the implementation of Sprint Nextel’s business strategies,
unexpected results of litigation filed against Sprint Nextel;
a significant adverse change in Motorola Inc’s ability or willingness to provide handsets and related equipment and software applications or to develop new technologies or features for the
iDEN network;
adverse network performance, including any performance issues resulting from the reconfiguration of the 800 megahertz band contemplated by the Federal Communications Commission’s
(FCC) report and Order;
the costs of compliance with regulatory mandates, particularly requirements related to the FCC’s Report and Order and deployment of enhanced 911 services on the iDEN network;
equipment failure, natural disasters, terrorist acts, or other breaches of network or information technology security;
the inability of supplies or other third parties to perform to requirements under agreements related to Sprint Nextel’s business operations;
one or more of the markets in which Sprint Nextel competes being impacted by changes in political or other factors such as monetary policy, legal and regulatory changes or other external
factors or natural disasters over which Sprint Nextel has no control; and
other risks referenced from time to time in Sprint Nextel’s filings with the Securities and Exchange Commission (SEC), including Sprint Nextel’s Form 10-K for the year ended December 31,
2005 , as amended, and Sprint Nextel’s Form 10-Q for the quarter ended March 31, 2006.
Sprint Nextel believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current
expectations and speak only as of the date of this release. Sprint Nextel is not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this
release.

1                                                     © 2006 Sprint Nextel. All rights reserved.
About the Speaker
    Brian Coughlin
    brian.coughlin@sprint.com
    Senior Technology Strategist
    Sprint Technology Development

    Reverse Chronology of Personal History
    • Joined Sprint January 2006
    • 7 years at Sun Microsystems
       > “Pre-bubble”: Telecommunications Systems Engineer
         Worked with Telecomm and SP partners: AOL, Nextel, PSInet,
       Teleglobe, Cable and Wireless, et. al.
       > “Post-bubble”: OEM Software Systems Engineer
         Worked with Sun partners who license embedded Java, Solaris,
       other Sun software technologies for use in their products
    • 2+ years at Bell Atlantic (Verizon) ISP division
       > Internet Systems Architect
    • 2+ years at Public Broadcasting Service
       > Telecommunications Analyst
       > Launched pre-web online services for PBS




2                       © 2006 Sprint Nextel. All rights reserved.
Sprint
    • Today

      > Merged with Nextel
         • Business customer base: 95% of Fortune 1000
         • combined total of over 50M subscribers
         • plus over 5M wholesale (MVNO) subscribers, e.g. Virgin Mobile
         • iDEN and CDMA wireless networks

      > Only ‘pure-play’ Tier-1 wireless carrier in USA

    • In progress for Tomorrow

      > National WiMax Mobile Broadband network

      > Joint Venture with major USA Cable MSOs




3                     © 2006 Sprint Nextel. All rights reserved.
Wireless Data Services Increasing Significance


1Q06 wireless data ARPU of $7.00, 11% of ARPU

Largest broadband network with aggressive expansion plans
                                 TM
Nearly 750,000 Power Vision           subscribers

1Q06 wireless data revenue over $800M


                                  Wireless Data ARPU


                   $8                                                       14%

                                                                            12%
                   $6
                                                                            10%

                                                                            8%
                   $4
                                                                            6%

                   $2                                                       4%
                          1Q05        2Q05    3Q05      4Q05         1Q06
                                 Data ARPU           % of Reported ARPU



4                       © 2006 Sprint Nextel. All rights reserved.
Sprint Wireless Mobility Leadership

    Offering best in class multimedia and messaging
      ― Live TV, Music, Picture Mail
    Unparalleled new products and services
      ― Themes, On Demand, Family Locator
    Maximizing workforce productivity
      — 53% of location based services market share
      — Lead the market in Mobile Office solutions




5                     © 2006 Sprint Nextel. All rights reserved.
Mobile WiMAX




    quot;The Internet is going airborne.“ - Ed Zander, Motorola CEO




6                © 2006 Sprint Nextel. All rights reserved.
Sprint, Moto, Intel and Samsung




       Mobile WiMax announcement for Sprint 4G Network




7                © 2006 Sprint Nextel. All rights reserved.
Mobile WiMAX in context
Broadband




              2.0
                                                                                   ‘M
                                                                                 W obi
                      Fiber      ‘Fixed’ WiMAX                                 80 iMA le’
                                                                                 2. X
                                     802.16d                                       16
         1.5                                                                          e
                     Cable                      Community
                                                                                             4G
                     DSL                        WiFi Mesh
         1.0                                                                             O
Mbps. Speed




                                                                                    -D
                                                                               , EV
                    Pre-WiMAX         WiFi
                                                                       MT S
                                                                     U
                    Broadband       Hot Spots                  3G
                     Wireless
              .5

                                                                             2G GPRS, 1XRTT


                    Fixed     Portable             Roaming                   Nomadic         Mobile
       8                        © 2006 Sprint Nextel. All rights reserved.
Mobile Broadband Tech Convergence




9             © 2006 Sprint Nextel. All rights reserved.
Sprint and “Mobile WiMax” (802.16e-2005)
     Sprint Advantages
 •
      > Sprint Spectrum Market Position
      > 2.5 GHz coverage 85 of the top 100 US Markets
      > Licensed 2.5 GHz WiMax advantages over unlicensed bands
      > WiMAX Channel size 10MHz vs CDMA 1.25 MHz

                    Carrier                Potential Subscribers @ 2.5GHz

                   ClearWire                            4,693,347
                   BellSouth                            9,070,577
                    Sprint                            157,519,832

                                                              Sources: WiMAX forum,
     Other Benefits of WiMAX
 •
                                                              DailyWireless.org
      > designed for scalable IP transport from its outset
      > Much greater spectral efficiency and bandwidth optimization




10                             © 2006 Sprint Nextel. All rights reserved.
Factors for Sprint Selection of WiMAX
     • Cost

     • Time to Market

     • Performance

     • Technology Supplier Ecosystem




                        Barry West, Sprint/Nextel CTO:
                        WiMax “offers four times the throughput
                        with around one tenth the cost”




11                       © 2006 Sprint Nextel. All rights reserved.
WiMax and Intel: Moore’s Law taking effect
          Wi-Fi & WiMAX commonality makes incremental cost
          to integrate WiMAX in laptops highly cost effective.
                                        Notebook Computer Shipments
                                                                                                              100%
                                                              Million Units




                                                                                                       93
                                                                                         84
                                                                            73
                                                              64
                                                 55                                                             Wi-Fi
                                                                    150 Million
                                   46                                                                        Penetration
                                                                  Smart Wireless
                      38                                          Devices by 2006
     27 30

                                                                                                                0%
     2001 2002       2003          2004 2005E 2006E 2007E 2008E 2009E
                 Source: Gartner March 2005 for Notebook PC shipments and Intel Estimates for Wi-Fi attach


12                               © 2006 Sprint Nextel. All rights reserved.
WiMax carrier Trials Worldwide




     Source: WiMAX Forum



13                   © 2006 Sprint Nextel. All rights reserved.
The WiMAX Forum Membership
             356 WiMAX Forum Members
         86 Ecosystem/Applications/Content

         121 Service Providers
                                                            356
         71 System Vendors
         78 Silicon/Component
         Suppliers




                     46

                Spring 2004                                  Today

14                   © 2006 Sprint Nextel. All rights reserved.
Cable Joint Venture
     • Joint Venture comprised of Sprint, Comcast, Time Warner, Cox and
     Advance/Newhouse

     • $200 funding - half from Sprint, half from Cable partners

     • Compelling new products and services coming – stay tuned.




15                        © 2006 Sprint Nextel. All rights reserved.
Linux Potential Role in This Ecosystem
     • Applying same Sprint decision criteria to Linux:
        > Cost
           • Economic Advantages over proprietary Operating Systems
              – sustainability
              – market diversity
              – software costs growing as percentage of total systems price

       > Time to Market
           • Linux is mature on ARM and x86 platforms already
           • CGL, MLI, CELF, etc. These are helping.

       > Performance
          • Linux highly scalable and tunable to specific hardware platforms
          • Linux/Open Source software is typically not ‘bloatware’

       > Technology Supplier Ecosystem
          • No single-sources (unlike Microsoft, Nokia Symbian, etc)
          • RedHat, Novell, Wind River, MontaVista, etc.
          • options for new vendors or companies to make their own
            implementations, add unique value



16                        © 2006 Sprint Nextel. All rights reserved.
Challenges for Linux into future
     • Security
        > Allow third-party binary applications on open devices but minimize
        security risks to viruses, malware, SPAM/SPIT on carrier network, etc.
        > Yet offer richer, easier user experience than existing sandboxed
        environments, e.g. JavaME

     • Licensing and Intellectual Property
        > Properly balance open-source ideals and practices with respect for
        Innovator’s need to make money and protect their IP

     • Market divide between Internet and Telecommunications infrastructure
     suppliers & technologies
        > more perception than reality
        > fortunately this divide is narrowing daily
        > Linux and Open Source code are already a key enabler that spans
        each of these

     • Commercial Maturity (what OSDL is about, right?)
        > great for techies, but sometimes works against mainstream adoption
        > no Gates or Jobs to lead market by example, creating de-facto
        commercial standards

17                        © 2006 Sprint Nextel. All rights reserved.
Software and Services as differentiator
     • Hardware eventually becomes a commodity
     • Software, combined with (Network) Services offer a much more
     sustainable market advantage
        > Microsoft
        > Tivo
        > Apple




18                     © 2006 Sprint Nextel. All rights reserved.
Selected Sprint Devices Running Linux Today




19              © 2006 Sprint Nextel. All rights reserved.
Linksys EV-DO/WiFi Router

     • Linksys WRT54G3G
     • 802.11b+g
     • 4 10/100 Wired Ethernet Ports
     • PC card slot supporting Sprint EV-DO Data
     cards for WAN access


     • Runs Linksys Linux kernel




20                           © 2006 Sprint Nextel. All rights reserved.
Kangaroo TV – ‘personal jumbotron’

 • Kangaroo TV IVT-200


 • Offered for rent to fans at NASCAR
 events


 • Linux kernel with Trolltech Qtopia

 • Features
      • Up to 10 live video feeds
      • Live audio feeds accessed on
      user-set frequencies
      • Video mpeg4 and Audio
      AAC3/mpeg1 layer 2
      • SD memory card
      • USB port




21                         © 2006 Sprint Nextel. All rights reserved.
Thank You!




          Brian Coughlin
          brian.coughlin@sprint.com
          Senior Technology Strategist
          Sprint Technology Development




22                 © 2006 Sprint Nextel. All rights reserved.

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Sprint Osdl Carrier/NEP Meeting Oct 2006

  • 1. OSDL Meetings Oct 10-12 Sprint and Technology Ecosystems Brian Coughlin Sr Technology Strategist Sprint Technology Development August 10-12, 2006
  • 2. Cautionary Statement This presentation includes “forward-looking statements” within the meaning of the securities laws. The statements in this presentation regarding the business outlook, expected performance, as well as other statements that are not historical facts, are forward-looking statements. The words quot;estimate,quot; quot;project,quot; ”forecast,” quot;intend,quot; quot;expect,quot; quot;believe,quot; quot;target,quot; “providing guidance” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are estimates and projections reflecting management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, customer and network usage, customer growth and retention, pricing, operating costs, the timing of various events and the economic environment. Future performance cannot be ensured. Actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include: the uncertainties related to the benefits of the merger with Nextel including anticipated synergies and cost savings and the timing thereof; the potential impact of difficulties Sprint Nextel may encounter in connection with the integration of the pre-merger Sprint and Nextel businesses, and the integration of the businesses and assets of certain of the PCS Affiliates that we have acquired to intend to acquire and Nextel Partners, Inc.; The impact of the spin-off of Sprint Nextel’s local communications business; the effects of vigorous competition, the overall demand for Sprint Nextel’s service offerings including the impact of decisions of new subscribers between Sprint Nextel’s post paid and pre paid service offerings and between its two network platforms and the impact of new, emerging and competing technologies, on its business; the costs and business risks associated with providing new services and entering new geographic markets; the impact of any adverse change in the ratings assigned to Sprint Nextel’s debt securities by ratings agencies; the ability of Wireless to continue to grow and improve profitability; the ability of its Long distance segment to retain customers and achieve expected revenues; the effects of mergers and consolidations in the telecommunications industry and unexpected announcements or developments from others in the telecommunications industry; the uncertainties related to Sprint Nextel’s investments in networks, systems and other businesses; the uncertainties related to the implementation of Sprint Nextel’s business strategies, unexpected results of litigation filed against Sprint Nextel; a significant adverse change in Motorola Inc’s ability or willingness to provide handsets and related equipment and software applications or to develop new technologies or features for the iDEN network; adverse network performance, including any performance issues resulting from the reconfiguration of the 800 megahertz band contemplated by the Federal Communications Commission’s (FCC) report and Order; the costs of compliance with regulatory mandates, particularly requirements related to the FCC’s Report and Order and deployment of enhanced 911 services on the iDEN network; equipment failure, natural disasters, terrorist acts, or other breaches of network or information technology security; the inability of supplies or other third parties to perform to requirements under agreements related to Sprint Nextel’s business operations; one or more of the markets in which Sprint Nextel competes being impacted by changes in political or other factors such as monetary policy, legal and regulatory changes or other external factors or natural disasters over which Sprint Nextel has no control; and other risks referenced from time to time in Sprint Nextel’s filings with the Securities and Exchange Commission (SEC), including Sprint Nextel’s Form 10-K for the year ended December 31, 2005 , as amended, and Sprint Nextel’s Form 10-Q for the quarter ended March 31, 2006. Sprint Nextel believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date of this release. Sprint Nextel is not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this release. 1 © 2006 Sprint Nextel. All rights reserved.
  • 3. About the Speaker Brian Coughlin brian.coughlin@sprint.com Senior Technology Strategist Sprint Technology Development Reverse Chronology of Personal History • Joined Sprint January 2006 • 7 years at Sun Microsystems > “Pre-bubble”: Telecommunications Systems Engineer Worked with Telecomm and SP partners: AOL, Nextel, PSInet, Teleglobe, Cable and Wireless, et. al. > “Post-bubble”: OEM Software Systems Engineer Worked with Sun partners who license embedded Java, Solaris, other Sun software technologies for use in their products • 2+ years at Bell Atlantic (Verizon) ISP division > Internet Systems Architect • 2+ years at Public Broadcasting Service > Telecommunications Analyst > Launched pre-web online services for PBS 2 © 2006 Sprint Nextel. All rights reserved.
  • 4. Sprint • Today > Merged with Nextel • Business customer base: 95% of Fortune 1000 • combined total of over 50M subscribers • plus over 5M wholesale (MVNO) subscribers, e.g. Virgin Mobile • iDEN and CDMA wireless networks > Only ‘pure-play’ Tier-1 wireless carrier in USA • In progress for Tomorrow > National WiMax Mobile Broadband network > Joint Venture with major USA Cable MSOs 3 © 2006 Sprint Nextel. All rights reserved.
  • 5. Wireless Data Services Increasing Significance 1Q06 wireless data ARPU of $7.00, 11% of ARPU Largest broadband network with aggressive expansion plans TM Nearly 750,000 Power Vision subscribers 1Q06 wireless data revenue over $800M Wireless Data ARPU $8 14% 12% $6 10% 8% $4 6% $2 4% 1Q05 2Q05 3Q05 4Q05 1Q06 Data ARPU % of Reported ARPU 4 © 2006 Sprint Nextel. All rights reserved.
  • 6. Sprint Wireless Mobility Leadership Offering best in class multimedia and messaging ― Live TV, Music, Picture Mail Unparalleled new products and services ― Themes, On Demand, Family Locator Maximizing workforce productivity — 53% of location based services market share — Lead the market in Mobile Office solutions 5 © 2006 Sprint Nextel. All rights reserved.
  • 7. Mobile WiMAX quot;The Internet is going airborne.“ - Ed Zander, Motorola CEO 6 © 2006 Sprint Nextel. All rights reserved.
  • 8. Sprint, Moto, Intel and Samsung Mobile WiMax announcement for Sprint 4G Network 7 © 2006 Sprint Nextel. All rights reserved.
  • 9. Mobile WiMAX in context Broadband 2.0 ‘M W obi Fiber ‘Fixed’ WiMAX 80 iMA le’ 2. X 802.16d 16 1.5 e Cable Community 4G DSL WiFi Mesh 1.0 O Mbps. Speed -D , EV Pre-WiMAX WiFi MT S U Broadband Hot Spots 3G Wireless .5 2G GPRS, 1XRTT Fixed Portable Roaming Nomadic Mobile 8 © 2006 Sprint Nextel. All rights reserved.
  • 10. Mobile Broadband Tech Convergence 9 © 2006 Sprint Nextel. All rights reserved.
  • 11. Sprint and “Mobile WiMax” (802.16e-2005) Sprint Advantages • > Sprint Spectrum Market Position > 2.5 GHz coverage 85 of the top 100 US Markets > Licensed 2.5 GHz WiMax advantages over unlicensed bands > WiMAX Channel size 10MHz vs CDMA 1.25 MHz Carrier Potential Subscribers @ 2.5GHz ClearWire 4,693,347 BellSouth 9,070,577 Sprint 157,519,832 Sources: WiMAX forum, Other Benefits of WiMAX • DailyWireless.org > designed for scalable IP transport from its outset > Much greater spectral efficiency and bandwidth optimization 10 © 2006 Sprint Nextel. All rights reserved.
  • 12. Factors for Sprint Selection of WiMAX • Cost • Time to Market • Performance • Technology Supplier Ecosystem Barry West, Sprint/Nextel CTO: WiMax “offers four times the throughput with around one tenth the cost” 11 © 2006 Sprint Nextel. All rights reserved.
  • 13. WiMax and Intel: Moore’s Law taking effect Wi-Fi & WiMAX commonality makes incremental cost to integrate WiMAX in laptops highly cost effective. Notebook Computer Shipments 100% Million Units 93 84 73 64 55 Wi-Fi 150 Million 46 Penetration Smart Wireless 38 Devices by 2006 27 30 0% 2001 2002 2003 2004 2005E 2006E 2007E 2008E 2009E Source: Gartner March 2005 for Notebook PC shipments and Intel Estimates for Wi-Fi attach 12 © 2006 Sprint Nextel. All rights reserved.
  • 14. WiMax carrier Trials Worldwide Source: WiMAX Forum 13 © 2006 Sprint Nextel. All rights reserved.
  • 15. The WiMAX Forum Membership 356 WiMAX Forum Members 86 Ecosystem/Applications/Content 121 Service Providers 356 71 System Vendors 78 Silicon/Component Suppliers 46 Spring 2004 Today 14 © 2006 Sprint Nextel. All rights reserved.
  • 16. Cable Joint Venture • Joint Venture comprised of Sprint, Comcast, Time Warner, Cox and Advance/Newhouse • $200 funding - half from Sprint, half from Cable partners • Compelling new products and services coming – stay tuned. 15 © 2006 Sprint Nextel. All rights reserved.
  • 17. Linux Potential Role in This Ecosystem • Applying same Sprint decision criteria to Linux: > Cost • Economic Advantages over proprietary Operating Systems – sustainability – market diversity – software costs growing as percentage of total systems price > Time to Market • Linux is mature on ARM and x86 platforms already • CGL, MLI, CELF, etc. These are helping. > Performance • Linux highly scalable and tunable to specific hardware platforms • Linux/Open Source software is typically not ‘bloatware’ > Technology Supplier Ecosystem • No single-sources (unlike Microsoft, Nokia Symbian, etc) • RedHat, Novell, Wind River, MontaVista, etc. • options for new vendors or companies to make their own implementations, add unique value 16 © 2006 Sprint Nextel. All rights reserved.
  • 18. Challenges for Linux into future • Security > Allow third-party binary applications on open devices but minimize security risks to viruses, malware, SPAM/SPIT on carrier network, etc. > Yet offer richer, easier user experience than existing sandboxed environments, e.g. JavaME • Licensing and Intellectual Property > Properly balance open-source ideals and practices with respect for Innovator’s need to make money and protect their IP • Market divide between Internet and Telecommunications infrastructure suppliers & technologies > more perception than reality > fortunately this divide is narrowing daily > Linux and Open Source code are already a key enabler that spans each of these • Commercial Maturity (what OSDL is about, right?) > great for techies, but sometimes works against mainstream adoption > no Gates or Jobs to lead market by example, creating de-facto commercial standards 17 © 2006 Sprint Nextel. All rights reserved.
  • 19. Software and Services as differentiator • Hardware eventually becomes a commodity • Software, combined with (Network) Services offer a much more sustainable market advantage > Microsoft > Tivo > Apple 18 © 2006 Sprint Nextel. All rights reserved.
  • 20. Selected Sprint Devices Running Linux Today 19 © 2006 Sprint Nextel. All rights reserved.
  • 21. Linksys EV-DO/WiFi Router • Linksys WRT54G3G • 802.11b+g • 4 10/100 Wired Ethernet Ports • PC card slot supporting Sprint EV-DO Data cards for WAN access • Runs Linksys Linux kernel 20 © 2006 Sprint Nextel. All rights reserved.
  • 22. Kangaroo TV – ‘personal jumbotron’ • Kangaroo TV IVT-200 • Offered for rent to fans at NASCAR events • Linux kernel with Trolltech Qtopia • Features • Up to 10 live video feeds • Live audio feeds accessed on user-set frequencies • Video mpeg4 and Audio AAC3/mpeg1 layer 2 • SD memory card • USB port 21 © 2006 Sprint Nextel. All rights reserved.
  • 23. Thank You! Brian Coughlin brian.coughlin@sprint.com Senior Technology Strategist Sprint Technology Development 22 © 2006 Sprint Nextel. All rights reserved.