Cricket Wireless 2011 Annual Report Download - page 13

We are continuing to pursue opportunities to strengthen and expand our business. We currently plan to
deploy next-generation LTE network technology across approximately two-thirds of our current network
footprint over the next two to three years. We successfully launched a commercial trial market in late 2011 and
plan to cover up to approximately 25 million POPs with LTE in 2012. Other current business investment
initiatives include the ongoing maintenance and development of our network and other business assets to allow
us to continue to provide customers with high-quality service. In addition, we plan to continue to strengthen and
expand our distribution, including through the wholesale agreement we have entered into. As we continue to
expand the size and scope of our business, we may enter into agreements with other vendors that contain
significant purchase or revenue commitments to enable us to obtain more favorable overall terms and conditions
for attractive products and services. We may also pursue other activities to build our business, which could be
significant, and could include the launch of additional new product and service offerings, the acquisition of
additional spectrum through private transactions or FCC auctions, the build-out and launch of new markets,
entering into partnerships with others or the acquisition of all or portions of other wireless communications
companies or complementary businesses. We expect to continue to look for opportunities to optimize the value
of our spectrum portfolio. Because some of the licenses that we hold include large regional areas covering both
rural and metropolitan communities, we may seek to partner with others, sell some of this spectrum or pursue
alternative products or services to utilize or benefit from the spectrum not currently used for Cricket service. We
intend to be disciplined as we pursue any investment initiatives and to remain focused on our position as a
low-cost provider of wireless telecommunications.
Cricket Business Strategy
•Target Customers in the Value Segment. Our Cricket products and services are designed to appeal to
customers who are seeking increased value. We provide unlimited nationwide voice, data and mobile
broadband wireless services with predictable billing without requiring customers to enter into long-term
commitments or pass a credit check. The foundation of our value proposition is our network, which
provides wireless services to our customers at a lower cost to us than many of our competitors. In
addition, we seek to maintain low customer acquisition costs through focused sales and marketing
initiatives and cost-effective distribution strategies.
•Continue to Develop Innovative and Value-Driven Products and Services. We continue to develop and
evolve our product and service offerings to better meet the needs of our target customer segments. For
example, in 2010 we introduced “all-inclusive” plans for our Cricket services and significantly expanded
our handset and device lineup, which included the introduction of “smartphones.” In early 2011, we
successfully launched Muve Music, an unlimited music download service designed specifically for
mobile handsets, which is now available in all Cricket markets. We believe that these new service plans
and product offerings have been attractive to customers and have improved our competitive positioning in
the marketplace. We expect to continue to develop our product and service offerings in 2012 and beyond.
•Continue to Build our Brand and Strengthen and Expand Our Distribution. We are focused on building
our brand awareness in our markets and improving the productivity of our distribution system. Since our
target customer base is diversified geographically, ethnically and demographically, our marketing
programs are designed to support local customization in order to better target our advertising expenses.
We have redesigned and re-merchandized our stores to help improve customer experience and reinforce
the value of the products and services we offer. To help strengthen and expand our distribution, in 2011
we significantly expanded the number of premier dealer locations, which are third party retail locations
with the look and feel of company-owned stores. We also significantly expanded our nationwide sales
presence by offering Cricket products and services in thousands of additional nationwide retailer
locations during 2011, and we plan to continue to strengthen and expand our presence in these locations.
We also continue to target potential new customers through the internet.
•Enhance Network Capacity and Service Coverage. As of December 31, 2011, the combined network
footprint in our operating markets covered approximately 95.3 million POPs. We continue to maintain
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