MetroPCS Communications Inc. Q3 2009 Earnings Call Transcript

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2009-11-05 13:30:19.0

Tags: Call Transcript, Earnings, Promotion, MetroPCS Communications Inc., ARPU, Marketing Research, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Rich Prentiss - Raymond James.

.

Rich Prentiss - Raymond James

First question I’ve got is, within the quarter, I think you’re pleased with where ARPU ended up sequentially, it looks like the international calling plan has well. You talked a little bit about the promotional plans coming out, to family plans more for the $30 service nation wide. Can you talk a little bit about, how long those promotions might stay in place? Are you trying to achieve churn reduction or what exactly are you trying to piece together with those promotions and what do you think the impact on ARPU might be?

Tom Keys

On the promotion front, we actually started those November 1, and we anticipate those to last November and December of this year. On the ARPU front, we’re not at a place where we can publicly make a statement about where we think or looking at this point.

Roger Linquist

I think Rick, what the intent is here is that to create to, shall we say the interest and we don’t expect everybody coming through the door to insist on these programs, but they do, I think deal with what’s important right now, which is in this very difficult economic environment, they are attractive to certain cross section of the population and we want to make sure that we have our share of fresh recruits coming in and looking at this service and they can see the value of our other services that we also promoted.

Rich Prentiss - Raymond James

It’s not necessarily churn reduction, its sounds more like probably gross ad production maybe and then get people in the store.

Roger Linquist

I really think its both, because I would say primarily we are looking at the so called fresh recruits, but I mean there will a balance of that.

Tom Keys

I thin the final point here, we’re not providing forward-looking guidance, but we have clearly said that these will cause some pressure on ARPU, other sales and marketing initiatives that we have done will cost pressure on ARPU, but in think that the third clearly demonstrates that MetroPCS is focused on being innovative in our marketing and service offerings and that’s margins and EBITDA growth are very, very important. So that’s, I think the appropriate way to look at it.

Rich Prentiss - Raymond James

 

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