February 17, 2005

Nextel Fourth Quarter Earnings

Nextel reported fourth quarter earnings of $471 million. Revenue came in at $3.58 billion as it gained 955 thousand new subscribers. For the year the company acquired 2.9 million new customers to end at 16.2 million.

Nextel is having success on the low-end youth market by adding 755 thousand pre-paid wireless customers. The average ASP is in the high $30s, while the overall ASP was $68. Churn came in at 1.5% a month, about flat from the year before. Nextel is in the process of being acquired by Sprint.