The ratings on Reston, Va.-based Sprint Nextel Corp. reflect a satisfactory business profile from its position as the third-largest wireless carrier in the U.S.; Nextel's high ARPU and low subscriber churn from its entrenched enterprise customer base, which relies on the differentiated push-to-talk service; the Sprint wireless unit's high ARPU and industry-leading data penetration; healthy EBITDA margins; a strong spectrum position; solid liquidity and good discretionary cash flow generation; and wholesale wireless operations, which help broaden market reach. Tempering factors include competitive wireless industry conditions; merger integration and network technology implementation challenges; and a large proportion of subprime customers, which is inhibiting progress in reducing churn. Based on recent operating performance, we expect Sprint Nextel's consolidated revenue to grow in
