Sprint at Goldman Sachs Conference Notes

posted in: Notes | 0

Marcelo Claure – President and CEO

Tremendous difference between prime and subprime customers

“You not only want to attract high quantity of customers, but you want to bring high quality of customers. There is a tremendous difference between prime and subprime customers. Now just putting perspective, a prime customer will stay with you about two and half times more than a subprime customer. A subprime customer goes shopping right after the contract expires. A subprime tends to stay with you averaging five to six years.”

We’re in a pretty competitive environment

“I think we’re living in a pretty competitive environment. If you look at Verizon’s advertising, it’s turned a bit aggressive. They hire people to talk about the Sprint network and for also you would be following Verizon, they have not done that I think. If I remember being a kid and watching Verizon’s commercials, I don’t remember them trying to hit somebody else as hard as they’re trying to hit us. So it’s quite competitive from that angle”

We’re all in the iPhone war

“There is once a year where there is a big launch of iPhones and we all try to basically put up the best offer. I think this year, we are very little creative. I think we all went with a free iPhone. So therefore there is no competitive advantage. So it’s interesting to see Verizon and AT&T react fast. Usually it take them — they’re used to taking a bit longer, perhaps in both T-mobile and ourselves announced a free iPhones obviously with a trading of a device…So that gives you an idea of the competitive environment, but I think it just shows — shows we’re all in the iPhone war who can get more pre-orders and then after that, we all go and we continue with our strategy.”

There’s no longer a big difference between mobile networks

“The important message to take away from this is, Verizon’s marketing hugely gone right. The T-Mobile network is good. Our network is good. AT&T network is good. So we’re all within fighting distance. Now in some places they’re better, we’re better, but that’s gone. Now what comes now is the most exciting part and that is when you have so much capacity, when you have — look at highway lane where you can put 60 cars and it’s half empty, well that’s going to give you two basic things that customers like, capacity and speed.”

You don’t need to spend a crazy amount of money to build an amazing network

“This is an interesting industry. People criticize you when you spend too much and then people criticize you when you spend too little. We’ve proven, you can — you don’t need to spend the crazy amount of building some dollar to build an amazing network.”

No one has stopped investing based on net neutrality

“There was a lot of talk about our competitors saying, hey if net neutrality passes, we’re going to stop investing, nobody has stopped anything. We’re all investing. Everybody is doing best thing investing over the network. So this one is touch issue that as Chairman of CTIA, we have to find a common ground among all carriers in terms of how do we represent the industry going forward.”

We don’t need Dish’s spectrum

“So I don’t have a lot to say about the 600 megahertz spectrum. We decided we don’t need it. We have enough spectrum. We don’t have to participate. So we watch what is going on. It’s quite interesting. Charlie — you can never read them, you have no idea what’s next. So I have no idea what Charlie will do with his spectrum. If we didn’t have a spectrum, we would be looking at this to a lot closer. We have sufficient high quality spectrum network going to work.”