Sprint - Nextel 2015 Annual Report Download - page 38

Table of Contents
factors, such as credit bureau information, subscriber credit risk scores and service plan characteristics. Payment history is subsequently monitored to further
evaluate subscriber credit profiles. Wholesale and affiliates are those subscribers who are served through MVNO and affiliate relationships and other arrangements.
Under the MVNO relationships, wireless services are sold by Sprint to other companies that resell those services to subscribers.
SuccessorYearEndedMarch31,2016andSuccessorYearEndedMarch31,2015
Retail service revenue decreased $1.9 billion , or 7% , for the Successor year ended March 31, 2016 compared to the year ended March 31, 2015
primarily due to a lower average revenue per subscriber driven by growth in both postpaid subscribers on our new plans and tablet sales. The decrease was partially
offset by an increase in average postpaid subscribers mostly due to improved churn.
Wholesale, affiliate and other revenues decreased $49 million , or 6% , for the Successor year ended March 31, 2016 compared to the year ended
March 31, 2015 primarily due to a decline in prepaid resellers and the impact of the shutdown of the Clearwire WiMAX network, partially offset by growth in
postpaid resellers and connected devices. Approximately 64% of our total wholesale and affiliate subscribers represent connected devices. These devices generate
revenue from usage which varies depending on the solution being utilized.
SuccessorYearEndedMarch31,2015andSuccessorYearEndedDecember31,2013
Retail service revenue increased $13.0 billion , or 95% , for the Successor year ended March 31, 2015 compared to the year ended December 31, 2013
primarily due to comparing a full twelve-month period to a shortened Post-merger period as well as growth in our prepaid Boost brand that carries a higher average
revenue per subscriber. These increases were offset by growth in tablet sales and postpaid subscribers on our new plans that tend to carry a lower average revenue
per subscriber as well as a decline in average postpaid and prepaid subscribers, which resulted in an overall decrease in retail service revenue when comparing the
Successor year ended March 31, 2015 to the Combined year ended December 31, 2013.
Wholesale, affiliate and other revenues increased $527 million , or 198% , for the Successor year ended March 31, 2015 compared to the year ended
December 31, 2013 primarily due to comparing a full twelve-month period to a shortened Post-merger period. In addition, wholesale, affiliate and other revenues
increased as a result of interest revenue associated with installment billing on handsets and an increase in revenues resulting from acquisitions in 2013.
Approximately 53% of our total wholesale and affiliate subscribers represent connected devices.
SuccessorThree-MonthTransitionPeriodEndedMarch31,2014andPredecessorThree-MonthPeriodEndedMarch31,2013
Retail service revenue slightly decreased $47 million , or 1% , for the Successor three-month transition period ended March 31, 2014 compared to the
same Predecessor period in 2013 . The decrease was driven by the loss of postpaid and prepaid subscribers due to the shut-down of the Nextel platform on June 30,
2013, partially offset by the postpaid and prepaid revenues resulting from the acquisitions in 2013.
Wholesale, affiliate and other revenues increased $26 million , or 20% , for the Successor three-month transition period ended March 31, 2014
compared to the same Predecessor period in 2013 primarily due to an increase in revenues resulting from acquisitions in 2013. Approximately 45% of our
wholesale and affiliate subscribers represent connected devices.
Average Monthly Service Revenue per Subscriber and Subscriber Trends
The table below summarizes average number of retail subscribers. Additional information about the number of subscribers, net additions (losses) to
subscribers, and average rates of monthly postpaid and prepaid subscriber churn for each quarter since the quarter ended March 31, 2013 may be found in the
tables on the following pages.
Successor
Combined
Successor
Predecessor
Year Ended
March 31,
Year Ended
March 31,
Three Months Ended
March 31,
Year Ended
December 31,
Year Ended
December 31,
191 Days Ended
July 10,
Three Months
Ended
March 31,
2016
2015
2014
2013
2013
2013
2013
(subscribers in thousands)
Average postpaid subscribers 30,561
30,068
30,639
31,124
30,957
31,296
31,566
Average prepaid subscribers 15,200
15,401
16,097
15,901
16,040
15,793
15,686
Average retail subscribers 45,761
45,469
46,736
47,025
46,997
47,089
47,252
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