OVERLAND PARK, Kan.-Sprint Corp. said it expects its wireless division to post full-year losses at the low end of previous guidance of 43 cents to 48 cents per share, and its full-year adjusted earnings before interest, taxes, depreciation and amortization will be in the upper end of its previous guidance of $3.3 billion to $3.4 billion.
The company also noted that it expects the recently implemented local number portability mandate to have an immaterial impact on fourth-quarter customer additions.
Most industry analysts have forecast Sprint PCS as a net neutral in early LNP activity.
Sprint also said it has decided to terminate in-house development of a new billing platform for its wireless division and instead expand and extend an existing billing outsourcing agreement with Convergys, which has provided Sprint PCS with billing support since 1996 and which late last week announced the acquisition of certain billing and customer care assets from Alltel Corp. for $37 million.
Sprint PCS explained the seven-year contract extension with Convergys would result in the carrier recognizing a fourth-quarter asset impairment charge of approximately $300 million, but produce cash operating expense savings of more than $100 million next year and approximately $300 million through 2006.
