Sprint - Nextel 2013 Annual Report Download - page 43

Table of Contents
_______________________
The following table shows (a) our average rates of monthly postpaid and prepaid subscriber churn and (b) our recapture of Nextel platform subscribers that
deactivated but remained as subscribers on the Sprint platform as of the end of each quarterly period beginning with the first quarter 2011.
_______________________
41
Supplemental data - connected devices
End of period subscribers (in thousands)(3)
Retail postpaid
715
727
762
783
791
809
817
813
824
798
834
922
Wholesale and affiliates
1,883
1,920
1,956
2,077
2,217
2,361
2,542
2,670
2,803
3,057
3,298
3,578
Total
2,598
2,647
2,718
2,860
3,008
3,170
3,359
3,483
3,627
3,855
4,132
4,500
(1)
A subscriber is defined as an individual line of service associated with each device activated by a customer. Subscribers that transfer from their original service category
classification to another platform, or another service line within the same platform, are reflected as a net loss to the original service category and a net addition to their new
service category. There is no net effect for such subscriber changes to the total wireless net additions (losses) or end of period subscribers.
(2)
We acquired approximately 352,000 postpaid subscribers and 59,000 prepaid subscribers through the acquisition of assets from U.S. Cellular when the transaction closed on May
17, 2013. We acquired approximately 788,000 postpaid subscribers (excluding 29,000 Sprint wholesale subscribers transferred to Transactions postpaid subscribers that were
originally recognized as part of our Clearwire MVNO arrangement), 721,000 prepaid subscribers, and 93,000 wholesale subscribers as a result of the Clearwire Acquisition which
closed on July 9, 2013.
(3)
Subscribers through some of our MVNO relationships have inactivity either in voice usage or primarily as a result of the nature of the device, where activity only occurs when data
retrieval is initiated by the end-user and may occur infrequently. Although we continue to provide these subscribers access to our network through our MVNO relationships,
approximately 1,218,000 subscribers at December 31, 2013 through these MVNO relationships have been inactive for at least six months, with no associated revenue during the
six-month period ended December 31, 2013.
(4)
End of period connected devices are included in total retail postpaid or wholesale and affiliates end of period subscriber totals for all periods presented.
March 31,
2011
June 30,
2011
Sept 30,
2011
Dec 31,
2011
March 31,
2012
June 30,
2012
Sept 30,
2012
Dec 31,
2012
March 31,
2013
June 30,
2013
Sept 30,
2013
Dec 31,
2013
Monthly subscriber churn
rate(1)
Sprint platform:
Postpaid
1.78
%
1.72
%
1.91
%
1.99
%
2.00
%
1.69
%
1.88
%
1.98
%
1.84
%
1.83
%
1.99
%
2.07
%
Prepaid
3.41
%
3.25
%
3.43
%
3.07
%
2.92
%
3.16
%
2.93
%
3.02
%
3.05
%
5.22
%
3.57
%
3.01
%
Nextel platform:
Postpaid
1.95
%
1.92
%
1.91
%
1.89
%
2.09
%
2.56
%
4.38
%
5.27
%
7.57
%
33.90
%
—
—
Prepaid
6.94
%
7.29
%
7.02
%
7.18
%
8.73
%
7.18
%
9.39
%
9.79
%
12.46
%
32.13
%
—
—
Transactions(2):
Postpaid
—
—
—
—
—
—
—
—
—
26.64
%
6.38
%
5.48
%
Prepaid
—
—
—
—
—
—
—
—
—
16.72
%
8.84
%
8.18
%
Total retail postpaid
1.81
%
1.75
%
1.91
%
1.98
%
2.01
%
1.79
%
2.09
%
2.18
%
2.09
%
2.63
%
2.09
%
2.15
%
Total retail prepaid
4.36
%
4.14
%
4.07
%
3.68
%
3.61
%
3.53
%
3.37
%
3.30
%
3.26
%
5.51
%
3.78
%
3.22
%
Nextel platform subscriber recaptures
Rate(3):
Postpaid
27
%
27
%
27
%
39
%
46
%
60
%
59
%
51
%
46
%
34
%
—
—
Prepaid
27
%
21
%
21
%
25
%
23
%
32
%
34
%
50
%
34
%
39
%
—
—
Subscribers
(4):
Postpaid
124
113
103
168
228
431
516
333
264
364
—
—
Prepaid
260
171
141
152
137
143
152
188
67
101
—
—
(1)
Churn is calculated by dividing net subscriber deactivations for the quarter by the sum of the average number of subscribers for each month in the quarter. For postpaid accounts
comprising multiple subscribers, such as family plans and enterprise accounts, net deactivations are defined as deactivations in excess of subscriber activations in a particular
account within 30 days. Postpaid and Prepaid churn consist of both voluntary churn, where the subscriber makes his or her own determination to cease being a subscriber, and
involuntary churn, where the subscriber's service is terminated due to a lack of payment or other reasons.
(2)
Subscriber churn related to the acquisition of assets from U.S. Cellular and the Clearwire Acquisition.
(3)
Represents the recapture rate defined as the Nextel platform postpaid or prepaid subscribers, as applicable, that switched from the Nextel platform but activated service on the
Sprint platform during each period over the total Nextel platform subscriber deactivations in the period for postpaid and prepaid, respectively.
(4)
Represents the Nextel platform postpaid and prepaid subscribers, as applicable, that switched from the Nextel platform during each period but remained with the Company as
subscribers on the Sprint platform. Subscribers that deactivated service on the Nextel platform and activated service on the Sprint platform are included in the Sprint platform net
additions for the applicable period.