Sprint - Nextel 2014 Annual Report Download - page 44

Table of Contents
42
Supplemental data - connected devices
End of period subscribers (in thousands)(3)
Retail postpaid 791 809 817 813 824 798 834 922 968 988 1,039 1,180 1,320
Wholesale and affiliates 2,217 2,361 2,542 2,670 2,803 3,057 3,298 3,578 3,882 4,192 4,635 5,175 5,832
Total 3,008 3,170 3,359 3,483 3,627 3,855 4,132 4,500 4,850 5,180 5,674 6,355 7,152
_______________________
(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 when the transaction 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 1,788,000 subscribers at March 31, 2015
through these MVNO relationships have been inactive for at least six months, with no associated revenue during the six-month period ended March 31, 2015.
(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.
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 quarter ended March 31, 2012.
March 31,
2012 June 30, 2012 Sept 30, 2012 Dec 31, 2012 March 31, 2013 June 30, 2013 Sept 30, 2013 Dec 31, 2013 March 31, 2014 June 30, 2014 Sept 30, 2014 Dec 31, 2014 March 31, 2015
Monthly subscriber churn rate(1)
Sprint platform:
Postpaid 2.00% 1.69% 1.88% 1.98% 1.84% 1.83% 1.99% 2.07% 2.11% 2.05% 2.18% 2.30% 1.84%
Prepaid 2.92% 3.16% 2.93% 3.02% 3.05% 5.22% 3.57% 3.01% 4.33% 4.44% 3.76% 3.94% 3.84%
Nextel platform:
Postpaid 2.09% 2.56% 4.38% 5.27% 7.57% 33.90% — — — — — — —
Prepaid 8.73% 7.18% 9.39% 9.79% 12.46% 32.13% — — — — — — —
Transactions(2):
Postpaid — — — — — 26.64% 6.38% 5.48% 5.48% 4.15% 4.66% 4.09% 3.87%
Prepaid — — — — — 16.72% 8.84% 8.18% 5.11% 6.28% 5.70% 4.95% 3.77%
Total retail postpaid 2.01% 1.79% 2.09% 2.18% 2.09% 2.63% 2.09% 2.15% 2.18% 2.09% 2.22% 2.33% 1.87%
Total retail prepaid 3.61% 3.53% 3.37% 3.30% 3.26% 5.51% 3.78% 3.22% 4.35% 4.50% 3.81% 3.97% 3.84%
Nextel platform subscriber recaptures
Rate(3):
Postpaid 46% 60% 59% 51% 46% 34% — — — — — — —
Prepaid 23% 32% 34% 50% 34% 39% — — — — — — —
Subscribers(4):
Postpaid 228 431 516 333 264 364 — — — — — — —
Prepaid 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.