Sprint - Nextel 2014 Annual Report Download - page 28

Table of Contents
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Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
OVERVIEW
Business Overview
Sprint is a communications company offering a comprehensive range of wireless and wireline communications
products and services that are designed to meet the needs of individual consumers, businesses, government subscribers, and
resellers. Unless the context otherwise requires, references to "Sprint," "we," "us," "our" and the "Company" mean Sprint
Corporation and its consolidated subsidiaries for all periods presented, inclusive of Successor and Predecessor periods, and
references to "Sprint Communications" are to Sprint Communications, Inc. and its consolidated subsidiaries.
Wireless segment earnings represented almost all of our total consolidated segment earnings for the year ended
March 31, 2015. Within the Wireless segment, postpaid wireless service revenue represents the most significant contributors
to earnings and are driven not only by the number of postpaid subscribers to our services, but also the average revenue per
user (ARPU).
Strategies and Key Priorities
Our business strategy is to be responsive to changing consumer mobility demands of existing and potential
customers, and to expand our business into new areas of customer value and economic opportunity through innovation and
differentiation. To help lay the foundation for these future growth opportunities, our strategy revolves around targeted
investment, both today and for the future, in the following key priority areas:
• Provide a network that delivers the consistent reliability, capacity and speed that customers demand;
• Achieve a more competitive cost position in the industry through simplification;
• Increase subscriber acquisition;
• Reduce churn and increase subscriber retention;
• Attract and retain the best talent in the industry; and
• Deliver a simplified and improved customer experience.
To achieve these key priorities we are focusing on the following initiatives. To provide a network that delivers the
consistent reliability, capacity and speed that customers demand, we expect to continue to optimize our 3G data network and
invest in LTE deployment across all spectrum bands. We also expect to define and deploy new technologies that will help
strengthen our competitive position, including the expected use of Voice over LTE and more extensive use of Wi-Fi. To
achieve a more competitive cost position, we have established an Office of Cost Management with responsibility for
identifying, operationalizing, and monitoring sustained improvements in operating costs and efficiencies. Also, we have
deployed new cost management and planning tools across the entire organization to more effectively monitor expenditures.
We are focused on attracting and retaining subscribers by improving our sales and marketing initiatives. We have expanded
our direct retail store presence through our relationship with RadioShack, as well as our new Direct to You service that brings
the Sprint store experience to our customers. We have demonstrated our value proposition through our new price plans,
promotions, and payment programs and have deployed new local marketing and civic engagement initiatives in key markets.
We seek to build a stronger management team through striking a balance of bringing in new outside talent with world class
experience and credentials and more fully leveraging the experience within our existing leadership team. To deliver a
simplified and improved customer experience, we are focusing on key subscriber touch points, pursuing process
improvements and deploying platforms to simplify and enhance the interactions between us and our customers. In addition,
we have established a Customer Experience Office to support our focus on Net Promoter Score as our key measure in
customer satisfaction.
Significant Transactions
On July 9, 2013, Sprint Nextel Corporation (Sprint Nextel) completed the acquisition of the remaining equity
interests in Clearwire Corporation and its consolidated subsidiary Clearwire Communications LLC (together "Clearwire")
that it did not previously own (Clearwire Acquisition) in an all cash transaction for approximately $3.5 billion, net of cash
acquired of $198 million, which provides us with control of 2.5 gigahertz (GHz) spectrum and tower resources for use in
improving the quality of our network. The allocation of consideration paid to assets acquired and liabilities assumed was
based on management's judgment of estimated fair values after evaluating several factors, including a valuation assessment.
On July 10, 2013, SoftBank Corp. and certain of its wholly-owned subsidiaries (together, "SoftBank") completed
the merger (SoftBank Merger) with Sprint Nextel contemplated by the Agreement and Plan of Merger, dated as of October
15, 2012 (as amended, the Merger Agreement), and the Bond Purchase Agreement, dated as of October 15, 2012 (as