Question-and-Answer Session
Operator
Thank you. (Operator Instructions) Thank you. Our first question is coming from David Coleman of RBC Capital Markets.
David Coleman - RBC Capital Markets
Great. Thanks a lot. You mentioned that smart phones and air cards were about 90% of I guess gross subscriber additions in the fourth quarter. Can you provide the total percent of the total handsets and devices in service that are smart phones and air cards I have a follow-up for that?
Mike Moneymaker
As far as the mix we ended the quarter with about 8% of the mix as smart phone and air cards.
David Coleman - RBC Capital Markets
Okay and then I guess from, as we look at your cost to deliver magnitude of data over your EV-DO network. And given the step down in the travel data rate through the Sprint wholesale contract. How that cost to deliver and megabyte data compares to the revenue that you would be receiving from Sprint under that contract when the rates do step down?
Mike Moneymaker
Sure I mean we are obviously familiar with the cost restoration of both the data megabyte in a voice minute. I think what's important here is that we take travel data for example. We will draw on our 90% of Sprint's data revenue yield and it's important going forward now that we have, December when we have 100% EV-DO capability it's important from a wholesale relationship that our customer has ability to generate a margin. And that’s similar to what we have done previously with our travel voice which is also set at 90% of the revenue, voice revenue data yield. So we are very comfortable with the cost structure there and the associated margin and more importantly with that variable structure that we have had in the past it really provides an incentive to our wholesale customers that continue to grow that market.
David Coleman - RBC Capital Markets
Okay thank you and then just as far as the credit facility you mentioned in the past the RP basket and the possibility of amending that to a value to increase the dividend any work down there that you can talk about?
Mike Moneymaker
No changes as far as anything in place today really is kind of a project for 2009 is just to continue to evaluate the market and to the extent there are opportunities to address I think the restricted payment basket I think the big picture the credit facility itself I think we would look into those and pursue those. I think right now I think the market is such that it's, could you go out and do something I think the answer is yes I think it just would be very expensive today and given the restricted payment basket gives a sufficient flexibility to increase the dividend as we have done so.
- To read the full transcript on Seeking Alpha, click here »
