In 3Q 09 Sprint depicted a moderate improvement in prepaid and postpaid gross additions reflecting new competitive innovative plans launched during the quarter and a widening mobile device portfolio. However, despite continues improvement in customer service standards, churn rate has not shown any significant improvement and the increasing Cost of Acquisition (CoA) and subsidy expenses are proving fatal for already deteriorating margins in a highly competitive and maturing market. Nonetheless, we believe that improving customer services, first mover advantage in 4G, an increasing portfolio of new mobile devices and Pan US broadband presence will help improve churn & gross additions and will drive revenues, going forward. At the same time, in line with Management expectations we believe that increasing subsidies in the wake of increasing competition will keep margins and costs under pressure, going forward. As a result we have revised our operating and net losses estimates upwards.

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