US operator Sprint Nextel said this week it would cut 5,000 jobs, with many to be slashed within the next few months.

The operator has show signs of struggling since its merger with iDEN operator Nextel. The operator anticipates consolidated operating revenues of $41bn for full year 2006, which means revenue outlook for 2007 is flat at between $41bn and $42bn.

Following Tuesday’s news that Cingular Wireless has an exclusive deal to launch the Apple iPhone, rival US operators are probably worrying in no small way how they can counter this. Sprint more than most, because as a CDMA-iDEN operator there is little chance it will ever be able to offer the iPhone.

Sprint expects to achieve $1bn in adjusted OIBDA benefit in 2007 from anticipated synergy attainment and incremental cost management initiatives but at the same time is putting a number of its eggs in the WiMAX basket.

The company anticipates a capital expenditure of around $800m for this year on WiMAX kit.