Sprint - Nextel 2014 Annual Report Download - page 4

Table of Contents
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Our Business Segments
We operate two reportable segments: Wireless and Wireline. For additional information regarding our segments,
see "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and also refer to
the Notes to the Consolidated Financial Statements.
Wireless
We offer wireless services on a postpaid and prepaid payment basis to retail subscribers and also on a wholesale
basis, which includes the sale of wireless services that utilize the Sprint network but are sold under the wholesaler's brand. We
continue to support the open development of applications, content, and devices on the Sprint platform. In addition, we enable
a variety of business and consumer third-party relationships through our portfolio of machine-to-machine solutions, which we
offer on a retail postpaid and wholesale basis. Our machine-to-machine solutions portfolio provides a secure, real-time and
reliable wireless two-way data connection across a broad range of connected devices.
Postpaid
In our postpaid portfolio, we offer several price plans for both consumer and business subscribers. Many of our
price plans include unlimited talk, text and data or allow subscribers to purchase monthly data allowances. We also offer
family plans that include multiple lines of service under one account. We offer these plans with traditional subsidy, installment
billing or leasing programs. The traditional subsidy program requires a signed service contract and allows for a subscriber to
either bring their handset or purchase one at a discount for a new line of service. Our installment billing program does not
require a signed fixed-term service contract and offers service plans at lower monthly rates compared to traditional subsidy
plans, but requires the subscriber to pay full or near full price for the handset over monthly installments. Our leasing program
also does not require a signed fixed-term service contract, provides for service plans at lower monthly rates compared to
traditional subsidy plans and allows qualified subscribers to lease a handset and make payments for the handset over the life of
the lease. At the end of the lease term, the subscriber can either turn in the handset, continue leasing the handset or purchase
the handset. See "Item 1A. Risk Factors—Subscribers who purchase a device on an installment billing basis are no longer
required to sign a fixed-term service contract, which could result in higher churn and higher bad debt expense" and "—
Because we are one of the first wireless service providers to lease devices to subscribers, our device leasing program exposes
us to new risks, including those related to the actual residual value realized on returned devices, higher churn and higher bad
debt expense."
Prepaid
Our prepaid portfolio currently includes multiple brands, each designed to appeal to specific subscriber uses and
demographics. Sprint prepaid primarily serves subscribers who want plans that are affordable, simple and flexible without a
long-term commitment. Boost Mobile primarily serves subscribers with plans that offer unlimited text and talk with step
pricing based on their preferred data usage. Virgin Mobile primarily serves subscribers through plans that offer control,
flexibility and connectivity through various plan options. Virgin Mobile is also designated as a Lifeline-only Eligible
Telecommunications Carrier in certain states and provides service for the Lifeline program under our Assurance Wireless
brand. Assurance Wireless provides eligible subscribers, in certain states, who meet income requirements or are receiving
government assistance, with a free wireless phone, 250 free local and long-distance voice minutes each month and unlimited
free texts under the Lifeline Program.
Wholesale
We have focused our wholesale business on enabling our diverse network of customers to successfully grow their
business by providing them with an array of network, product and device solutions. This allows our customers to customize
this full suite of value-added solutions to meet the growing demands of their businesses. As part of these growing demands,
some of our wholesale mobile virtual network operators (MVNO) are also selling prepaid services under the Lifeline program.
Services and Products
Data & Voice Services
Wireless data communications services include mobile productivity applications, such as Internet access, messaging
and email services; wireless photo and video offerings; location-based capabilities, including asset and fleet management,
dispatch services and navigation tools; and mobile entertainment applications, including the ability to view live television,
listen to satellite radio, download and listen to music, and play games. Wireless voice communications services include basic
local and long-distance wireless voice services throughout the U.S., as well as voicemail, call waiting, three-way calling, caller
identification, directory assistance and call forwarding. We also provide voice and data services in numerous countries outside