Sprint - Nextel 2015 Annual Report Download - page 4

Table of Contents
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.
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 subsidy, installment billing or leasing programs. The subsidy program requires a 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 service contract and offers service plans at lower
monthly rates compared to 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 service contract, provides for service plans at lower monthly rates compared to subsidy plans and allows qualified subscribers to lease a
device and make payments for use of the device over the term of the lease. At the end of the lease term, the subscriber can either turn in the device, continue
leasing the device or purchase the device. 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 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 increased losses on
devices ."
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, 350 free local and long-distance voice minutes each month and
unlimited free texts under the Lifeline Program. The Lifeline Program requires applicants to meet certain eligibility requirements and existing subscribers must
recertify as to those requirements annually.
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.
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.
Services and Products
Data&VoiceServices
Wireless data communications services are provided throughout the U.S. and 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 listen to satellite radio, download and listen to music, and play games. Wireless
voice communications services provided throughout the U.S. include basic local and long-distance wireless voice services, as well as voicemail, call waiting, three-
way calling, caller identification, directory assistance and call forwarding. We also provide voice
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