Contract losses expected in Sprint 1Q report

NEW YORK (AP) — Analysts will be looking at whether the iPhone is helping Sprint when it reports its first-quarter results Wednesday.

The report from Sprint Nextel Corp., the third-largest wireless carrier in the U.S., will come before the stock market opens.

Sprint has been losing contract-based subscribers for years, but showed a small gain in the fourth quarter, when it started selling the iPhone. The phone is expensive, but Sprint’s management considers it essential to competing with ATT Inc. and Verizon Wireless for high-paying subscribers.

Now, analysts expect it to post another loss of contract-signing subscribers. Estimates of how many vary widely, from 22,000 to 127,000.

Sprint faces multiple long-term challenges. Not only is the iPhone very expensive, it has also embarked on a network upgrade plan that costs billions.

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