OVERLAND PARK, Kan.—Citing refinement in its credit policies for sub-prime customer segments, increased pricing competition and business customers waiting for the launch of next-generation networks, Sprint PCS said it expects to add around 300,000 net customers during the second quarter of this year, well below previous estimates of around 700,000 net subscriber additions.
The carrier also said year-end subscriber additions might fall as much as 15 percent short of previous guidance of 3 million net customer additions. Sprint PCS also cut $100 million from its capital expenditures budget for the year to $3.3 billion.
The news was not taken well on Wall Street where no less than eight investment firms cut their recommendations on Sprint PCS’ tracking stock. Investors took the advice plunging the carriers stock down more than 35 percent in early Friday trading to a new all-time low of $2.15 per share.
A number of Sprint PCS’ affiliates were similarly hit as were other wireless operators including AT&T Wireless and Nextel Communications Inc.
