PALM Palm (MM)

Sprint Nextel Corp. (S) is through with the worst of the revenue declines, according to the company's financial chief.

The company is entering a period of more stable operations, Chief Financial Officer Robert Brust told analysts during an investor conference on Monday.

The Overland Park, Kan., carrier, despite continued subscriber losses, has managed to narrow those declines and has showed steady improvement over the past few years, including an improved handset selection, less expensive plans and more effective customer service. Brust previously said he expects the company to return to revenue growth by the end of the year.

While gross customer additions have improved, Sprint still wrestles with the rate of customer turnover, Brust said.

Offsetting declines in its postpaid business is the strength in its prepaid presence, which includes multiple brands. Brust said he sees "big upside" in prepaid for the company.

Also speaking was the president of Sprint's prepaid business, Dan Schulman. He said the value for a prepaid customer is "improving dramatically."

Addressing the concern about cannibalization, Schulman said that there are already a lot of people looking at prepaid as an option. The market is growing fast enough that while Sprint could lose one customer from cannibalization, it could add five new prepaid customers.

Sprint recently launched a new brand and service offering in the prepaid area, but Schulman said it was too early to say how the adoption has fared.

Sprint is also looking to its fourth-generation, or 4G, network, run by Clearwire Corp. (CLWR), as a growth engine. Brust said that Boston could see 4G by fall, although he added that the city would get it as late as the end of the year.

The carrier is looking to its Evo smartphone, the first 4G phone in the U.S., as another catalyst. The phone is slated to launch in early June, days before the believed launch date for the next Apple Inc. (AAPL) iPhone.

Brust said that the company has learned a lot from a year ago, when it launched the Palm Inc. (PALM) Pre as its flagship smartphone. He acknowledged that the phone struggled in the market.

"The Pre didn't work out as well as we hoped," he said.

Part of the issue was the lack of supply. Brust said that he doesn't see an inventory issue with the Evo.

When asked about the iPhone, Brust said "we'd love to have it." But he said he wasn't aware of the possibility of Sprint getting the iconic smartphone.

Sprint shares were up 1.8% to $4.44 in recent trading.

-By Roger Cheng, Dow Jones Newswires; 212-416-2153; roger.cheng@dowjones.com

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