Sprint - Nextel 2007 Annual Report Download - page 40

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Below is a table showing (a) net additions (losses) for the past twelve quarters of direct subscribers for our iDEN and CDMA networks, excluding
subscribers obtained through business combinations, existing subscribers who have migrated between networks and indirect subscribers of MVNOs and
PCS Affiliates, (b) our total iDEN and CDMA post-paid subscribers as of each of the quarters in 2005, 2006 and 2007, and (c) our average rates of
monthly post-paid and prepaid customer churn for the past twelve quarters.
Quarter Ended
March 31,
2005
June 30,
2005
September 30,
2005
December 31,
2005
March 31,
2006
June 30,
2006
September 30,
2006
December 31,
2006
March 31,
2007
June 30,
2007
September 30,
2007
December 31,
2007
Net additions (losses)
(in thousands)
Post-paid:
iDEN ................. — — 136 188 72 (68) (379) (643) (744) (662) (700) (686)
CDMA(2) .............. 518 400 394 558 491 278 191 337 524 678 363 3
Total ............. 518 400 530 746 563 210 (188) (306) (220) 16 (337) (683)
Boost Mobile-branded service:
iDEN-based prepaid ..... — — 230 638 502 498 216 171 272 70 (57) (202)
CDMA-based unlimited
local calling plan ...... — — — — — — — — 3 99 124 257
Total ............. — — 230 638 502 498 216 171 275 169 67 55
End of period subscribers
(in thousands)
iDEN post-paid ............. — — 16,367 16,555 16,616 18,624 18,204 17,601(1) 16,535 15,472 14,355 13,246
CDMA post-paid(2) .......... 18,283 18,683 19,600 20,422 22,487 22,781 23,471 24,204(1) 25,050 26,129 27,079 27,505
Total post-paid ............. 18,283 18,683 35,967 36,977 39,103 41,405 41,675 41,805 41,585 41,601 41,434 40,751
Boost Mobile prepaid ........ — — 1,987 2,625 3,127 3,625 3,841 4,012 4,284 4,354 4,297 4,095
Boost Mobile unlimited local
calling plan .............. — — — — — — — — 3 102 226 483
Total prepaid ............... — — 1,987 2,625 3,127 3,625 3,841 4,012 4,287 4,456 4,523 4,578
Monthly customer churn rate
Direct post-paid(3) ........... 2.5% 2.2% 2.2% 2.1% 2.1% 2.1% 2.4% 2.3% 2.3% 2.0% 2.3% 2.3%
Direct prepaid .............. — — 3.5% 4.6% 5.4% 6.0% 6.8% 6.5% 7.0% 6.8% 6.2% 7.5%
(1) In the fourth quarter 2006, we changed our subscriber deactivation policy for post-paid subscribers to provide us additional time to retain subscribers who were subject to
deactivation due to late payment. To effect this change, the subscriber base as of October 1, 2006 was increased by 436,000 subscribers. We adjusted our subscriber beginning
balance so as to not increase our direct net subscriber additions or decrease the customer churn rates for the fourth quarter 2006 due to this policy change.
(2) Includes subscribers with PowerSource devices, introduced in the fourth quarter 2006.
(3) During the third quarter 2007, we implemented an additional churn rule to remove the impact of activations and deactivations occurring within 30 days in the same account. The
new rule, which we believe presents a more precise churn calculation, reduced churn by 10 basis points to 2.3% in the third quarter 2007. The additional churn rule did not
impact reported net additions or results of operations. Prior period churn figures have not been adjusted for this additional churn rule.
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