Sprint - Nextel 2015 Annual Report Download - page 39

Table of Contents
The table below summarizes ARPU. Additional information about ARPU 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
ARPU (1) :
Postpaid $ 53.30
$ 59.32
$ 62.98
$ 63.29
$ 63.46
$ 63.10
$ 62.47
Prepaid $ 27.85
$ 27.81
$ 27.07
$ 26.62
$ 26.64
$ 26.57
$ 26.08
Average retail $ 44.85
$ 48.65
$ 50.61
$ 50.89
$ 50.89
$ 50.85
$ 50.39
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(1) ARPUiscalculatedbydividingservicerevenuebythesumofthemonthlyaveragenumberofsubscribersintheapplicableservicecategory.Changesinaveragemonthlyservicerevenue
reflectsubscribersforeitherthepostpaidorprepaidservicecategorywhochangerateplans,thelevelofvoiceanddatausage,theamountofservicecreditswhichareofferedto
subscribers,plustheneteffectofaveragemonthlyrevenuegeneratedbynewsubscribersanddeactivatingsubscribers. CombinedARPUfor2013aggregatesservicerevenuefromthe
Predecessor191-dayperiodendedJuly10,2013andtheSuccessoryearendedDecember31,2013dividedbythesumofthemonthlyaveragesubscribersduringtheyearendedDecember
31,2013.
SuccessorYearEndedMarch31,2016andSuccessorYearEndedMarch31,2015
Postpaid ARPU for the Successor year ended March 31, 2016 decreased compared to the year ended March 31, 2015 primarily due to the impact of
subscriber migration to many of our new service plans, resulting in lower service fees, combined with ongoing growth in sales of tablets, which carry a lower
revenue per subscriber. Prepaid ARPU for the Successor year ended March 31, 2016 increased compared to the year ended March 31, 2015 primarily due to an
increase in average prepaid Boost subscribers that carry a higher ARPU compared to other prepaid brands, partially offset by the revenue impact of subscribers
choosing lower priced plans in both the Boost and Virgin Mobile brands due to increased competition combined with a decrease in average Virgin Mobile
subscribers.
SuccessorYearEndedMarch31,2015andSuccessorYearEndedDecember31,2013
Postpaid ARPU for the Successor year ended March 31, 2015 decreased compared to the year ended December 31, 2013 primarily due to growth in
sales of tablets, which carry a lower revenue per subscriber combined with the impact of subscriber migration to many of our new service plans, resulting in lower
service fees. Prepaid ARPU for the Successor year ended March 31, 2015 increased compared to the year ended December 31, 2013 primarily due to an increase of
higher average Boost subscribers which carry a higher ARPU as compared to other prepaid brands partially offset by decreases in total average subscribers,
primarily in the Virgin Mobile and Assurance brands.
SuccessorThree-MonthTransitionPeriodEndedMarch31,2014andPredecessorThree-MonthPeriodEndedMarch31,2013
Postpaid ARPU for the Successor three-month transition period ended March 31, 2014 increased compared to the same Predecessor period in 2013
primarily due to the shut-down of the Nextel platform on June 30, 2013 and the impact of losing subscribers who carried a lower average revenue per subscriber.
This increase was partially offset by a lower revenue per subscriber carried by subscribers acquired in the Clearwire and U.S. Cellular acquisitions and growth in
sales of tablets, which also carry a lower revenue per subscriber. Prepaid ARPU for the Successor three-month transition period ended March 31, 2014 increased
compared to the same Predecessor period in 2013 primarily due to the impact of a higher revenue per subscriber carried by subscribers acquired in the Clearwire
acquisition combined with an increase in ARPU primarily for the Virgin Mobile prepaid brands as subscribers chose higher priced plans.
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