Telephone & Data Systems, Inc. Q2 2008 Earnings Call Transcript

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2008-08-07 21:07:12.0

Tags: Telephone and Data Systems Inc.

Question-and-Answer Session

[Operator Instructions]. Our first question comes from the side of SimonFlannery. Your line is open please go ahead.

Simon Flannery - Morgan Stanley

Okay. Thanks very much. Good morning everybody, wanted to come back to the wireless gross adds if I could for a second, you referred in the release to consumer anxiety I think in the past you've talked about people trying to get their monthly recurring charge down as well but not seen it so much in the number of actual gross adds. So can you give us a sense of how much of this is the economy versus increased completion, bigger handset subsidies versus just over a market maturity as wireless penetration starts to climb, what's your sense of that and have you've seen any change during the quarter are things are going progressively worse or fairly stable through the quarter? Thanks.

Jay M. Ellison - Executive Vice President and Chief Operating Officer

Yes, this is Jay Ellison. A lot of questions in there I think I'll try to summarize what I think I heard. First of all... in the first part I think you were talking I think we had in previous calls we've talked about customers, consumers trying to adjust their wireless spending without disconnecting I think I our churn numbers continue reflect very strong results that we are keeping our customers.

But as customers do call into our call centers or going to our stores we have seen them trying to work with their plans to get either better value overall and in some cases it actually may increase their level of spend a little bit but it is delivering more value over time or make some adjustments relative to the actual products or services cost consolidation of those rate plans into more family plans versus single lines plans and things along those lines.

Some of our market that like in the Northeast, Northwest obviously, may see a little more significant impact in rural areas relative to some of the economic environment but that's also where we've seen some this activity of giving value out of the rate plans themselves [ph] and I would argue that we've pretty much have seen kind of... that environment that Ken and Steve both described this competitiveness, on handset subsidies really a crop all of the footprint and obviously we are going to compete to provide our customers with the greatest value that we can, it's pretty much been across the enterprise throughout... really the first half of the year.

 

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