Sprint Nextel said Wednesday that it lost 901,000 subscribers in the second-quarter, but reported that other improvements are starting to take hold with its business.

“We are seeing signs of progress from our efforts to improve the customer experience, rebuild the Sprint brand and increase our profitability,” Dan Hesse, Sprint’s CEO, said in a statement.

Sprint Nextel shares opened down more than 9 percent this morning, a drop some observers are attributing to the company's planned convertible preferred stock transaction.

Sprint reported a net loss of $344 million or 12 cents a share. After certain adjustments, however, the company earned 6 cents a share.

On average, analysts were expecting Sprint to report net income of 3 cents per share for the quarter, according to Thomson One.
This performance was better than the first quarter when Sprint lost 1 million
subscribers, seeing its customer base slip to 52.8 million. The company also lost $505 million in the first quarter as sales dropped by 8 percent from about $10 billion to $9.3 billion.

So we'll hear more from Hesse in a few hours when Sprint holds its conference call with Wall Street analysts.

In the meantime, here are a few of the data points Sprint is using to make the case for improvement:

Churn, a widely tracked figure within the industry that indicates the extent of customer loyalty, still isn't fantastic, but it's better than before.

For Sprint's customers on monthly calling contracts, the rate of churn dropped to just under 2 percent. The improvement, which Sprint said was the best that the wireless industry has seen since 2004, came from "improving the customer experience, retention initiatives, strong customer response to Simply Everythingand better performance in customer care."

Another important figure is how much revenue on average Sprint is bringing in from each customer. In the industry, this is known as ARPU. Sprint said its ARPU for the quarter was $56, stable with the figure from the first quarter.

Customers on the Sprint portion of the company's network, however, continue to snap up data services. Data contributed $15 to the average revenue per user among these subscribers, a gain of nearly $1 from the first three months of the year.

Sprint cut back sharply on capital spending, but continued improving the quality of its wireless network. Seems to be working. Dropped and blocked calls declined at double-digit rates on both the Sprint and Nextel portions of the company's network.

With the latest subscriber losses, Sprint now has a total of 51.9 million subscribers.

Verizon Wireless led the industry in the second quarter, adding 1.5 million subscribers to reach a total of 68.7 million. AT&T continued holding the No. 1 spot in the industry, however, as it added 1.3 million subscribers and grew its base of customers to a total of 72.9 million.