Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Michael Rollins – Citi Investment
Michael Rollins – Citi Investment
I was wondering if you could talk a little bit more about you’d expect seasonality to move into the second quarter and into the third quarter given that historically there is some significant moves from 1Q-2Q, and 2Q-3Q and maybe how they might be similar or different to years past given the restructuring initiatives that you have underway.
If you can give us a little bit more details on the success of the Boost Unlimited on iDEN in the quarter and give us a sense, just some of the economics you’re expecting to get out of those customers.
Dan Hesse
With respect to seasonality, yes this is a seasonal business and we would expect to see a lot of the similar seasonal trends in the Q2 and Q3 of this year that the industry has seen in past year. One thing that is changing that could be different is we have seen a fairly sizeable shift, as I mentioned earlier in the remarks in the first quarter between post-paid and prepaid.
In terms of subscriber acquisition and also of course we have some economic issues this year that are non-traditional. That could have some impact on what we see in Q2 and Q3 but I’m not going to provide any additional forecast or guidance beyond what we’ve already provided. Generally I think we’ll continue to see similar, we don’t see any reason that the industry trends of seasonality will not continue.
With respect to Boost Unlimited, as you see, we had very strong subscriber numbers in the first quarter. We continue to see that momentum is still there so we are hopeful that we could have similar numbers in terms of additions in the second quarter that we do in the first quarter. I think what’s positive is that we are seeing very little cannibalization of our post-paid base, our CDMA and iDEN customers post-paid that are showing up with Boost Unlimited which is another positive for the economics.
We’re very bullish and very pleased with what we’ve seen on Boost Unlimited and as you know, we have significant amount of capacity available on the iDEN network so there’s no incremental capital cost, manufacturer that capacity or the minutes that are required to disserve those customers and the prepaid ARPU of about $50 is pretty significant for prepaid and I think you’re also seeing an improvement in churn characteristics in prepaid.
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