Sprint 3Q15 Earnings Call Notes

Sprint’s (S) CEO Marcelo Claure on Q3 2015 Results

500k postpaid additions

“Sprint continues to build momentum in subscriber growth as you can see reflected in our third quarter results, we have 491,000 total net additions in the quarter, which bring us to over 2 million total net additions year-to-date, as continued progress in postpaid has offset the pressures of the prepaid business. Postpaid net additions of 501,000 were the highest in four years comparing net additions of only 30,000 in the prior year quarter, which makes five consecutive quarters of postpaid growth.”

Focused on network densification and optimization

“A couple of things to our network, first and foremost, we are focused on a densification and optimization strategy. We’ve been very clear that we’re going to do that without jeopardizing the customer experience. And the way we’re expanding network is we’re utilizing something that we call the lowest cost structure.”

Fundamental value prop is to keep things simple

“So our fundamental value proposition is we like to keep things simple. It’s a great product at a great price. And we are achieving that. As you have seen, our network is performing better than ever. And therefore, I think the best way to validate that is our churn.”

We made it clear that we’re going to be a price leader

“As it relates to prices, we made it very clear that we’re going to be a price leader. We are pretty bold in terms of offering 50% of our competitor rate plans and after they have been with us for 24 months, they are going to go back to a standard rate plan. We can do that, because we see our network getting better every time.”

We have the best churn in our history

“Our existing customers are finding out that they already have the best price and customers had been with us for a while, they are very satisfied with the quality of the network and all the improvements that they are experiencing. I think the best way to measure that is churn. If you look at what we have done in churn, it had been three consecutive quarters in which we have had the best churn in the Sprint’s 20-year wireless history.”

ARPU is an outdated figure

“I think ARPU is an outdated figure. It’s really hard to measure, because as we’re transitioning customers from a traditional subsidy model to a model where they are paying or they are leasing their device, it’s really hard to measure ARPU”