Question-and-Answer Session
Operator
(Operator Instructions) Your next question comes from Rick Prentiss - Raymond James.
Rick Prentiss - Raymond James
I just wanted to follow-up on a couple of things. I think I heard Steb say that the change, the gross add guidance, was really due to; one, weak economy and two, the prepaid competition. Can you just elaborate a little bit on that which impacted you more and what caused the change from last quarter to this quarter as far as pulling it down to the add or slightly below the low end?
Tim Yager
I think one other key item on the gross add is certainly the credit tightening that we did in the fourth quarter of last year not knowing exactly when we set the guidance what the impact was going to be, so that certainly had an impact as well. We do think the weak economy has been a contributor to this.
During the quarter, we had MetroPCS launch in a couple of our Michigan markets and then also we’ve had Boost since the first year launch in all of our markets, Boost unlimited on the iDEN network. So I think it’s kind of a combination of those three effects is what has led us to the revision in our guidance on the gross adds.
Rick Prentiss - Raymond James
Then I think you also mentioned that the Palm Pre is doing well. You’ve asked for more supply, can you talk a little bit about what the supply situation has been like?
Conrad Hunter
I’ll just say it’s been constrained from day one. So we’ve got received limited quantities and we’ve allocated those based upon really where the product works the best, which is in our EV-DO market. It’s very constrained in most of our distribution. We’ve been told to start to see some additional quantities of that product. So we’re pleased with that. Quite frankly, we’re very pleased also with the advertising that Sprint is starting to do around that device.
Rick Prentiss - Raymond James
You touched on it a little bit on the Virgin Mobile deal, your exclusivity arrangement with Sprint that obviously has been called into question with Clearwire and Nextel. Is it network related or do you think the fact that Sprint is buying Virgin Mobile, which had been a separate company? If those customers come into Sprint, what are your thoughts initially, like as far philosophically? Because it wouldn’t be network driven, it would be still on the CDMA network. How does that play into your arrangement?
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