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Thread: PCS Q2 conference call notes

  1. #1
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    PCS Q2 conference call notes

    Sprint PCS Q2 2003 CC notes:

    Len Lauer was firing through information so fast I couldn't write it all down, so here's the highlights.

    - The basic metrics were net adds of 360K, ARPU of $62, churn down to 2.4%.

    - Gross adds were lower than Q1. They specifically blamed inventory issues with the Sanyo 8100. They later said they are receiving shipments as fast as they can get them, since they still do not have the 8100 in all the channel locations, in addition to running out where they have it. They expect to correct the inventory problem, plus they have additional handsets coming online with similar features and price.

    - Vision subs have increased to 2.1M from 1.3M at the end of last quarter. The uptake continues to go higher, it was listed at 40% in their chart for Q2 vs. 26% for Q1. Data ARPU is now $2 and they expect it to get to $3 by EOY03. Vision Data ARPU went from $7 to $9 QOQ. They have a total of 4.6M data customers(Vision + Wireless Web). Greater than 2/3 of Vision trial users stay on after the trial period.

    - Expect ARPU to remain over $60 for remainder of the year. CPGA should come down to $38* range from $415, primarily due to higher gross adds. Churn should stay down, somewhere in the mid-2%'s.

    - 60% of the base now has a 1x handset, and 7% of the base upgraded their handset in Q2.

    - They just completed their new agreement with RSH.

    - 70% of gross adds were Prime credit in Q2, and they exited the quarter at 75%.

    - Beginning in Week2 of August, they will offer Virgin prepaid in Sprint stores.

    - They have 17,600 dist. points at EOQ, up 1,000. They plan to expand their Sprint store presence, from in the low 500's now, to mid-600's at EOY and 800 at EOY04. They feel expanding data services and customers that switch carriers are more in need of a Sprint-specific store.

    - The components of ARPU are now 70% MRC, 15% overage, and 15% other. The average MRC on new additions in Q2 was up $3 Q2 vs. Q1.

    - Added 330 new cell sites and 530 new carriers. Totals are now 20K sites and 34.5K carriers.

    - They believe pent-up demand for number port. is greater on the business side than the consumer side.

    - Usage is up to 13.5 Hrs/month, from 12 Hrs/month in Q1. They think continuing displacement of wireline minutes could continue to move this figure higher.

    - Saw a 60% increase in aircard sales, I didn't catch if this was YOY or QOQ and they did not give an absolute figure.

    - Len talked in detail about their position on WiFi service and the potential in specific high traffic locations. He also said Sprint is still focused on the EV-DV path and expects it in the 2005 timeframe.

    - Sprint(as a whole) reduced net debt by $3.6B in the past 2 quarters, over half of their $7B target by EOY04.


    Cooters

  2. #2
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    Thank you, as always.
    As the audio experience is integral to this game,
    for maximum enjoyment, headphones or an ideal listening
    environment are highly recommended.

  3. #3
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    thanks for the info

  4. #4
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    Is ARPU refer to revenue per phone line, or per account? LIke is a 2-line plan count as 1 or 2 users?

    -martin

  5. #5
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    Per subscriber. Each line in a multi-line account is an individual sub. Kinda amazing they maintain that ARPU with how cheap add-a-phones are, isn't it.

    BTW, I need to go for the evening, so I'll take up this discussion tomorrow.

    later,
    Cooters

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