Sprint - Nextel 2015 Annual Report Download - page 41

Table of Contents
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
June 30,
2015
Sept 30,
2015
Dec 31,
2015
March 31,
2016
Supplemental data - connected
devices
End of period subscribers (in
thousands) (5)
Retail postpaid 824
798
834
922
968
988
1,039
1,180
1,320
1,439
1,576
1,676
1,771
Wholesale and affiliates 2,803
3,057
3,298
3,578
3,882
4,192
4,635
5,175
5,832
6,620
7,338
7,930
8,575
Total 3,627
3,855
4,132
4,500
4,850
5,180
5,674
6,355
7,152
8,059
8,914
9,606
10,346
_______________________
(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) SprintplatformreferstotheSprintnetworkthatsupportsthewirelessserviceweprovidethroughourmultiplebrands.
(3) 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.Throughouttheperiodspresented,subscriberseithermigratedtootherSprintofferingsorservicewascanceled.AsofMarch31,2016,wehavenoremaining
transactionsubscribersprimarilyduetotheshutdownoftheWiMAXnetwork.
(4) 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
1,110,000subscribersatMarch31,2016throughtheseMVNOrelationshipshavebeeninactiveforatleastsixmonths,withnoassociatedrevenueduringthesix-monthperiodended
March31,2016.
(5) 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, 2013.
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
June 30,
2015
Sept 30,
2015
Dec 31,
2015
March 31,
2016
Monthly subscriber churn
rate (1)
Sprint platform:
Postpaid 1.84%
1.83%
1.99%
2.07%
2.11%
2.05%
2.18%
2.30%
1.84%
1.56%
1.54%
1.62%
1.72%
Prepaid (2) 3.05%
5.22%
3.57%
3.01%
4.33%
4.44%
3.76%
3.94%
3.84%
5.08%
5.06%
5.82%
5.65%
Nextel platform:
Postpaid 7.57%
33.90%
—
—
—
—
—
—
—
—
—
—
—
Prepaid 12.46%
32.13%
—
—
—
—
—
—
—
—
—
—
—
Transactions (3) :
Postpaid —
26.64%
6.38%
5.48%
5.48%
4.15%
4.66%
4.09%
3.87%
6.07%
8.55%
NM
NM
Prepaid —
16.72%
8.84%
8.18%
5.11%
6.28%
5.70%
4.95%
3.77%
7.23%
8.51%
NM
NM
Total retail postpaid 2.09%
2.63%
2.09%
2.15%
2.18%
2.09%
2.22%
2.33%
1.87%
1.61%
1.61%
1.87%
1.72%
Total retail prepaid 3.26%
5.51%
3.78%
3.22%
4.35%
4.50%
3.81%
3.97%
3.84%
5.13%
5.12%
6.29%
5.65%
Nextel platform subscriber
recaptures
Rate (4) :
Postpaid 46%
34%
—
—
—
—
—
—
—
—
—
—
—
Prepaid 34%
39%
—
—
—
—
—
—
—
—
—
—
—
Subscribers (5) :
Postpaid 264
364
—
—
—
—
—
—
—
—
—
—
—
Prepaid 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) InthequarterendedJune30,2015,theCompanyreviseditsprepaidsubscriberreportingtoremoveoneofitsrulesthatmatchescustomerswhodisconnectandthenre-engagewithina
specifiedperiodoftime.Thisenhancement,whichwebelieverepresentsamoreprecisechurncalculation,hadnoimpactonnetadditions,butdidresultinreportinghigherdeactivations
andhighergrossadditionsinthe
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