Sprint - Nextel 2010 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2010 Sprint - Nextel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

Average Monthly Service Revenue per Subscriber and Subscriber Trends
The table below summarizes average number of retail subscribers and average revenue per subscriber for the years
ended December 31, 2010, 2009 and 2008. Additional information about the number of subscribers, net additions to
subscribers, average monthly service revenue per subscriber and average rates of monthly postpaid and prepaid customer churn
for each quarter since the first quarter 2008 may be found in the table on the following page.
Average postpaid subscribers(1)
Average prepaid subscribers(1)
Average monthly service revenue per subscriber(2):
Postpaid
Prepaid
Average retail
Year Ended December 31,
2010
(subscribers in thousands)
33,249
11,272
$ 55
28
48
2009
34,640
5,313
$ 56
33
53
2008
38,752
4,135
$ 56
30
53
________
(1) Average subscribers include subscribers acquired through business combinations prospectively from the date of
acquisition. Average subscribers for the years ended December 31, 2010 and 2009 are inclusive of prepaid and
postpaid subscribers acquired through our 2009 business combinations of Virgin Mobile and iPCS, which were
previously included within wholesale and affiliate subscribers. In addition, average prepaid subscribers for the same
periods are exclusive of 49,000 subscribers transferred to wholesale and affiliates as a result of a sale and transfer of
customers to an affiliate in 2010.
(2) Average monthly service revenue per subscriber is calculated by dividing service revenue by the sum of the average
number of subscribers. Changes in average monthly service revenue reflect subscribers who change rate plans, the level
of voice and data usage, the amount of service credits which are offered to subscribers, plus the net effect of average
monthly revenue generated by new subscribers and deactivating subscribers.
Average monthly postpaid service revenue per subscriber for 2010 declined slightly as compared to 2009 due to declines
in overage revenues resulting from the increased popularity of fixed-rate bundled plans including the Any Mobile AnytimeSM
feature. Average monthly retail postpaid service revenue per subscriber was stable for 2009 compared to 2008 as a result of
improved retention of higher revenue subscribers on bundled rate plans offset by lower overage and roaming revenues.
Average monthly prepaid service revenue per subscriber for 2010 decreased compared to 2009 due to prepaid
subscribers acquired in our fourth quarter 2009 business combination of Virgin Mobile as well as net subscriber additions under
our Assurance Wireless brand launched in early 2010, which carry a lower average revenue per subscriber compared to Sprint's
other prepaid subscribers. Average monthly prepaid service revenue per subscriber increased during 2009 as compared to 2008
due to higher revenue from our National Boost Monthly Unlimited users combined with more stable average revenue per
subscriber from our traditional prepaid users. The lower prepaid average revenue per subscriber and the increased weighting of
average prepaid subscribers to total subscribers resulted in a decline in our average retail service revenue per subscriber for
2010 compared to 2009.
Table of Contents
30