The ratings on Overland Park, Kan.-based wireless carrier Sprint Nextel Corp. reflect declining revenue and margins due to the continued erosion of its subscriber base, lower average revenue per user (ARPU), and high churn relative to its peers, as well as Standard&Poor's Ratings Services' expectations for increased leverage over the next few years. Mitigating factors include Sprint Nextel's position as the third-largest wireless carrier in the U.S., a strong portfolio of spectrum licenses, and industry-leading data penetration. Sprint Nextel's weaker operating and financial performance is the result of several factors, most notably the erosion of its subscriber base on the legacy iDEN network. These customers represent about one-third of Sprint Nextel's post-paid customers. We believe the company will
