Question-and-Answer Session
Operator
Absolutely. (Operator instructions) And we will go first to Ric Prentiss with Raymond James.
Ric Prentiss – Raymond James
Thanks. Good morning guys.
Adele Skolits
Good morning, Ric.
Chris French
Good morning, Ric.
Ric Prentiss – Raymond James
A couple of questions for you starting on the wireless slide, can you talk a little bit about the competitive landscape that you're seeing out there? Like you mentioned, you guys don't have the Boost offering on the iDEN platform, but not having a prepaid product that I'm aware of, how is that affecting your ability to be competitive in the marketplace right now?
Earle MacKenzie
This is Earle. It certainly has an impact especially on the customers with a lower credit rating. We're finding that a number of customers are coming in and inquiring about service but do not meet our credit requirements, and so at this time we do not have an option. So we assume that at that point they are going to one of the prepaid options that are available in the marketplace. But overall, as you can see, it really hasn't had a significant impact on our ability to generate gross additions.
Ric Prentiss – Raymond James
Right. And as Sprint looks to close the Virgin transaction and bring that in house, will that change anything? Virgin was obviously an MVNO previously, but once it goes inside of Sprint, how is that related with your contract with Sprint?
Earle MacKenzie
We are in discussions with Sprint right now about how that will impact us and at this point I don't have an answer of exactly how that is going to be working going forward.
Ric Prentiss – Raymond James
Right. And then TracFone has a new product out there, a fairly new product out there called SafeLink going after Lifeline subsidies and Lifeline type usage. Looks like – now this is entirely – but it looks like in the entire state of Virginia, it might have had 75,000 or 100,000 subscribers, I wondered if you're seeing any impact from TracFone's Lifeline product also?
Earle MacKenzie
We really haven't either on our wireline or wireless business. With our wireline rates at $8, it is kind of hard for it to be competitive there, and on the wireless side, we really haven't seen any impact either.
Ric Prentiss – Raymond James
Great. I'll come back in for questions after others get a chance. Thanks.
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