Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of David Barden - BAS-ML
David Barden - BAS-ML
Two if I may on wireless pricing, first at the higher end of the market, as you are about to deploy LTE data services this year and then more broadly next year, how do you think about the pricing model and preserving the revenue contribution you’re getting today from the 3G service set. Are you expecting people to spend up or how do you plan to preserve the value that you’ve created in 3G [overlaying] this product, and then at the lower end, obviously there’s been a tremendous amount of focus on your partnership with TrakPhone, some have theorized that it’s a Trojan horse to destabilize the market at the lower end and as part of a broader strategy there, could you talk through how you’re thinking about that relationship and what its intended to accomplish and where it stands today.
John Killian
I’ll start with the front end on the LTE and then Denny will hit the TrakPhone part of it, we’re very early days obviously on LTE. We’re doing our trials this year. We’ve talked about deploying next year to 30 markets, 100 million pops roughly. A lot of the pricing that we will have out in the marketplace initially will be on our broadband access kinds of offerings.
It will very much follow the kind of pricing structure that we have in place today. We’ll be 12 months down road when we’re, in a much bigger rollout there. So we’ll continue to monitor the market. The other thing with LTE though, there are a range of other applications, machine to machine, kinds of things.
So pricing structures for that will evolve as we go through the next 12 months.
Denny Strigl
I like your Trojan horse strategy, but frankly that wasn’t our intent. So we know investors have been interested in TrakPhones’ introduction of the product that they call Straight Talk. And we’re not here to disclose the terms and conditions of the contract that we have with any of our partners, but I will address some of the broader issues of the TrakPhone arrangement.
First of all I think that we’ve been very consistent in our comments that our key focus has been and will continue to be on the retail postpaid market and there is no change in that strategy. That doesn’t mean however that we’ll ignore the prepaid or our reseller partners. The second point that I would make is that we’ll always look for opportunities to capture share on a profitable basis but we wouldn’t do that by cannibalizing our own postpaid base.
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