Sprint at Goldman Sachs Conference Notes

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Marcelo Claure – President and CEO

It must have been a fun industry for my competitors before I got here because everyone took customers away

“when I came this must have been a really fun industry for my three competitors because everybody took customers away from Sprint and it’s good that a year later we’re back at taking customers away from them’

We’re catching up to AT&T and VZ in network performance

“we were last in absolutely everything. It’s good a year later we’re third catching up to Verizon and AT&T in the overall network performance. ”

This was not the original plan

“what happen is as you know when I took over that wasn’t the original plan. The original plan was final talks with T-Mobile he was quite open. We were very sure that the government was going to approve our deal, but I guess the government sent us some pretty interesting messages that made us say hey we cannot do that deal. And I think as Masa has publicly said, you know he was very disappointed. He felt one of the biggest mistakes was to not truly understand the U.S. regulatory system.”

Post paid customers are all that matter

“so one of the things that it took me a little while to learn was that really nothing matters except post-paid as the net adds established on matter and much of AT&T were lost to M2M or cars none of those things matter the only thing that can move profitability in this business is basically your handset customers because that’s where 85% to 90% of the revenue comes.”

We’re the price leader, but there isn’t perception that we are

“when you ask customers why do you select a carrier, why do you choose AT&T, Verizon, Sprint or T-Mobile, they look at three basic factors, network, pricing and handsets. And I think from a network perspective we’re getting better dramatically. From a pricing perspective is we are the price leader we still don’t have the perception that we’re a price leader. And thirdly from a handset perspective, I think you’ve seen us innovate new way for a customer too on this so we feel very good about churn going forward.”

Calling Legere Pink Bat Man

“we take a lot of pride in being the first wireless carrier to offer leasing. I remember my friend the one that thinks he is pink bat man, pink bat man say that was a bad idea. And pink bat man copied the idea later. So that’s quite interesting. [Multiple Speakers] You can let him know that I thought and I think he was pink bat man. And he will probably say something or Tweet something, but anyway.”

AT&T and Verizon want to stretch out the amount of time the customer keeps their handsets

“T-Mobile and ourselves are very happy to do one year upgrades but I think as Lowe has said and as AT&T has said it, they want to go the opposite way they want to stretch the amount of time the customer keeps their handsets, they’re very happy with that.”

Going to cut costs with zero based budgeting

“in order for us to win is we got to take a lot of cost out of Sprint, there is no way around it right. Like I said year two it’s easier for me because I understand the business I understand areas where we can go after. What zero-based budgeting means, it means that you don’t take anything for granted you grab every single dollar that’s going to be spent and every single dollar that’s going to leave Sprint and you basically review it ahead of time. ”

We’re changing the way that we’re building our network

“First is network OpEx, the way we’re building our network is not a traditional way it’s a disruptive way. We are not buying equipment from your traditional OEM and we’re not going to a traditional tower companies so which both are quite expensive. We have found a combination of newer vendors and we are going to many different utility companies, we’re going directly ourselves so we’re doing a lot of that work and we believe that you can basically take out OpEx if you do it that way. It’s a disruptive way. It’s a very different way, but the quarter for spectrum let us do and then I’ll talk a little more about that.”

We have a lot of spectrum and we’re going to deploy it through small cells

“we’re going to embark in what is going to be, I would say the largest deployment in U.S. history. We’re going to put 10s of thousands of small cells. And the reasons why we can do it is that we have a lot of flexibility in our backhaul due to the fact to the large spectrum that we have.”

The size of our pipe is going to be bigger than any other carriers

“our job is going to be to build an amazing network, an amazing rich data rich, video rich network. And you can afford to do that because when you have 200 megahertz of spectrum the size of the pipe is going to be bigger than any of the other carriers. So we’re going to have a capacity reach video enabled network.”