Sprint FY 4Q14 Earnings Call Notes

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Churn is the most important customer satisfaction metric

“Moving to slide eight, the only way to truly measure customer satisfaction is by churn because churn represents the voice of (10:11) the customer. In order for us to improve our customer trends, we must reduce our churn by fundamentally transforming the customer experience.’

Our network is better than T-Mobile

“In the second half 2014, Sprint overall network score improved to third-place ahead of T-Mobile with notable progress in reliability as well as call and text performance. Further evidence of the continuous improvements can be seen in our testing so far in the first half of 2015 with additional market results coming out every week.”

Everybody says that their network is great

“I find it amusing that T-Mobile claims the fastest network, that AT&T claims the strongest LTE signal or that Verizon claims the most reliable network making you think they have twice the coverage, this just further clouds the consumer’s perception of network experiences.”

Embracing WiFi

“In addition, at Sprint, we’re embracing Wi-Fi as a complementary layer to the network by leveraging the in-building coverage and capacity that it provides where customer spends most of their time, including at work or in their homes.’

Promoting a customer first mentality

Turning to slide 10, we’re continuing to develop a customer-first culture across all touch points. As a result of these efforts, we’re seeing positive feedback from customers based on the sequential improvement in our Net Promoter Scores month after month’

Big jump in people proud to work at Sprint survey

“According to our latest employee survey, the percentage of employees responding favorably to a statement, I’m proud to work at Sprint, improved from 63% in fiscal third quarter to a record high, 81%, in the fourth quarter.”

Copying T-Mobile down to the “pain point” language

“In Sprint’s customer-centric culture, we’re passionate about listening and understanding customers’ pain points and making changes to enhance their experience. One of the main complaints from customers who travel to top destinations in Latin America and Europe and Japan, is how shocked they are when they return home”

Focusing on the Hispanic market

“Sprint is committed to engaging, connecting and providing wireless services to the Hispanic consumer. The Hispanic market is a very important part of our business”

We lost way fewer postpaid subs

“what I want to make sure you understand is, we only lost 201,000, which – that’s a big gain when we compare that to previous quarters. I go back and I was looking at some of the data before and we lost 201,000, but when you compare that to the previous year, at the same time, we were losing 700,000 customers. So this is a gain of 500,000 customers that we feel it’s a great gain and we’re building the right momentum.”

Masa is behind densifying the network

“As it relates to what are SoftBank’s involvement, SoftBank has been very involved, Masa personally himself has been working very hard with their engineers and our engineers basically to define what is that next generation network. And to us, it’s going to be, well we do know is there’s going to be a massive densification of our network and when you massively densify any network the results that you get when you have so much spectrum are spectacular and you can see it already in places where we’ve done some of that, where our network is better than AT&T in many different places.’