Shenandoah Telecommunications Company Q1 2009 Earnings Call Transcript

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2009-05-05 17:50:40.0

Tags: Call Transcript, Plan, Earnings, Sales Strategy, Telecommunications, Sales, Seeking Alpha, Shenandoah Telecommunications Co.

Question-and-Answer Session

Operator

(Operator Instruction) We'll take our first question from Rick Prentiss with Raymond James.

Rick Prentiss - Raymond James

Couple of questions for you guys. On the wireless side, so it looks like data ARPU spot on at $18 in the quarter versus a 11 is that 27 of previous year. Can you remind us fourth quarter '08, was that like it 16 bucks, if I remember, I'm just trying to get the quarter-over-quarter growth also?

Earle MacKenzie

We were appropriately at $16, high 15, like $15.90 and $15.95, I believe.

Rick Prentiss - Raymond James

Okay. And if you look at the rate plans that you mentioned were the most taken in the quarter as far as gross adds. Simply Everything is up there. Could you estimate how much of your base is on to the Simply Everything plan right now?

Earle MacKenzie

I really don’t have those numbers handy, but it's been in the top three of our plans ever since it has been launched. So, these three plans represent 50% of our gross adds, all of them are $100 or more a month plans.

Rick Prentiss - Raymond James

Right. And it's been top three sellers probably for the last several quarters a year, maybe?

Earle MacKenzie

Yes. Its really been the last four quarters they have been our top selling plans. We really have focused our sales organization on selling the high end rate plans.

Rick Prentiss - Raymond James

Yes. So I'm trying to look at is understanding with the weak economy you mentioned, you've seen both traffic down. Trying to gauge what might be happening to ARPU as we look out over the next year or two, knowing how many people are and Simply Everything plans, where data might go up. I'm just trying to gauge maybe ask you directly, what do you think ARPU trends are looking like this year?

Earle MacKenzie

Really hard to know at this point. At this point we don’t see any real change in the buying patterns. The majority 50% of our customers are buying these three higher-end plans.

Rick Prentiss - Raymond James

That’s been the case for pretty much the last year?

Earle MacKenzie

It has.

Rick Prentiss - Raymond James

Okay. The spread (inaudible) 25.43 reported the other day also showed data ARPU on the CDMA side had hit about $18 also, but was not much growth sequentially was like $17.50 fourth quarter and then only $18 in the first quarter. So trying to gauge is, is data kind of reaching a plateau in this tough economy, or we might still be seeing some pressure on the voice side?

 

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