Sprint Nextel’s troubles continued in the third quarter, as the third-largest US operator reported a 9 percent decline in revenue, a widening loss and further churn. Revenue for the period July to September came in at US$8.04 billion, down from US$8.81 billion a year ago, whilst net losses were US$478 million (US$0.17 a share), compared to losses of US$326 million (US$0.11 a share) a year earlier.

Its total subscriber count now stands at 48.3 million, compared to 48.8 million at the end of 2Q09. At the heart of Sprint’s struggles is the loss of postpaid monthly-bill-paying subscribers, the most highly valued customers in the mobile market. The operator lost 801,000 postpaid customers in the quarter, even as it offered Palm’s high-profile Pre smartphone. This does not stack up well against the more than 3 million subscribers added in total by rivals AT&T and Verizon in the quarter. Sprint chief executive Dan Hesse talked up the fact that the rate of postpaid losses has slowed, after it lost 991,000 in the second quarter and 1.25 million in the first quarter. Sprint fared much better in the prepaid sector, adding some 666,000 prepaid users in the third-quarter. For the fourth quarter, Hesse said the company expects to see sequential quarterly improvements in both postpaid and total net subscriber losses.