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iPCS Q3 2007 Earnings Call Transcript

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2007-11-07 18:39:26.0

Tags: iPCS Inc.

Question-and-Answer Session

Operator

(Operator Instructions). Thank you. Our first question is coming from Ana Goshko of Banc of America.

Ana Goshko - Banc of America

Hi. Thank you very much. Couple of different questions. First, on the gross addition guidance, which is now at the low end of the range, but I think it's really [take] for the year. Does that really mean sequentially flat gross adds, which you're going into the strong fourth quarter? So, I'm assuming part of that is because of the issues you are having with the billing system, and the growth that's there. The other part is, that you're tightening credit standards.

So, on those two topics, this is the first time that I've really heard about these billing issues with RadioShack. Is it something that's just come up recently or that's been exacerbated recently?

And then on second part, on the credit standards, can you give us just a more insight on the increased involuntary churn in the quarter? You have said that you haven't changed your credit standards at all. Is it a case that there is something going on at Sprint that's impacting you?

Tim Yager

Sure Ana. This is Tim. I'll take the first one, as it relates to billing issue. We obviously knew that Sprint was going to be migrating our customers over the ENSEMBLE billing platform. I think as Dave moved more and more customers over to that platform, it has created an issue more. And I think as (inaudible) said on its own earnings call, the majority of the Sprint's new customers are going on the ENSEMBLE billing platform. But yet none of our new customers are going on the ENSEMBLE billing platform. So, I think as they move further in that process, and we haven't been migrated, the issue has been exacerbated over the last couple of months, and we expect it to continue into the fourth quarter.

Steb Chandor

As it relates to the involuntary churn, I mean clearly the churn is higher than we like. The economy obviously is negatively impacting our subs. But as we did mention earlier, part of the increase is due to the increased subprime activations. In late '06, Sprint requested that we migrate to a new credit platform, which they implement, manage and monitor for us and what we desire to do is map across to the new platform, they need to maintain the same general credit profile of our activations.

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