Sprint's (NYSE: S) wireline business continues to be impacted by the ongoing falling prices for VoIP services and lower traditional voice business volume.
During the quarter, Sprint's wireline revenue declined 14 percent year-over-year and almost 9 percent sequentially to $1.1 billion, a factor it attributes to annual intercompany rate reduction based on market prices for voice and IP as well as the scheduled inevitable migration of wholesale cable VoIP customers off of Sprint's IP platform.
On a slightly positive note, Sprint's IP-based network migration continues to drive down operating expenses. In Q1, Sprint's total wireline operating expenses were $1 billion, down almost 13 percent year-over-year and almost 9 percent sequentially due to improvement in SG&A expenses and lower depreciation expenses.
At the same time, wireline Adjusted OIBDA was $228 million for the quarter, compared to $279 million in the first quarter of 2010 and $267 million reported for the fourth quarter of 2010.
From an overall company perspective, Sprint reported Q1 2011 consolidated net operating revenues of approximately $8.3 billion, a 3 percent increase from Q1 2010, and posted operating income of $259 million.
For more:
- see the earnings release
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