Telecom Lead America: Is Sprint Nextel joining the league of telecom operators who are planning to cut down on telecom infrastructure Capex?
On Wednesday, AT&T said it may lower telecom Capex in 2012 from the earlier expected $20 billion to the low end of the $19 to $20 billion range.
Announcing the financial results for the third quarter on Thursday, Sprint Nextel said: “Sprint now expects full year capital expenditures of less than $6 billion in 2012, excluding capitalized interest.”
In 2011, when the mobile operator shared its guidance, Sprint said the company expects full year capital expenditures of approximately $6 billion in 2012, excluding capitalized interest.
In first nine months of 2012, Sprint spent $3.447 billion as Capex, up 76 percent from the same period last year’s $1.955 billion.
If Sprint is spending significantly less than $6 billion this year, it will affect several telecom suppliers.
In 2011, Sprint’s Capex was $2.416 billion against $1.444 billion in 2010, up 67 percent.
Sprint on Thursday said Capital expenditures, excluding capitalized interest of $52 million, were $1.5 billion in the quarter, compared to $760 million in the third quarter of 2011 and $1.2 billion in the second quarter of 2012.
Wireless capital expenditures were $1.4 billion in the third quarter of 2012, compared to $647 million in the third quarter of 2011 and $1 billion in the second quarter of 2012.
During the third quarter, the company invested $1.1 billion for Network Vision and approximately $195 million in capacity related to both legacy network and Network Vision equipment.
Wireline capital expenditures were $60 million in the third quarter of 2012, compared to $36 million in the third quarter of 2011 and $79 million in the second quarter of 2012.
Corporate capital expenditures were $53 million in the third quarter of 2012, compared to $77 million in the third quarter of 2011 and $67 million in the second quarter of 2012, primarily related to IT infrastructure to support our Wireless and Wireline businesses.
Meanwhile, Sprint posted 5 percent increase in third quarter revenue at $8.7 billion.
Net loss of Sprint has widened to $767 million from $301 million.