Cricket Wireless 2011 Annual Report Download - page 67
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Please find page 67 of the 2011 Cricket Wireless annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
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suspended, the customer is generally not able to make or receive calls or access the internet. Any call attempted
by a suspended customer is routed directly to our customer service center in order to arrange payment. If a new
customer does not pay all amounts due on his or her first bill within 30 days of the due date, the account is
disconnected and deducted from gross customer additions during the month in which the customer’s service was
discontinued. If a customer has made payment on his or her first bill and in a subsequent month does not pay all
amounts due within 30 days of the due date, the account is disconnected and counted as churn. For Cricket
Wireless customers who have elected to use BridgePay to receive an additional seven days of service, those
customers must still pay all amounts otherwise due on their account within 30 days of the original due date or
their account will also be disconnected and counted as churn. Pay-in-advance customers who ask to terminate
their service are disconnected when their paid service period ends.
Prior to October 31, 2011, customers for our Cricket PAYGo service were generally disconnected from
service and counted as churn if they had not replenished, or “topped-up,” their account within 60 days after the
end of their current term of service, and the length of their current term of service depended upon the dollar
amount of service they had purchased. Beginning October 31, 2011, we modified our policies to provide more
uniform disconnection procedures between our Cricket PAYGo and Cricket Wireless services. Cricket PAYGo
customers generally now have 60 days from the date they activated their account, were charged a daily or
monthly access fee for service or last “topped-up” their account (whichever is later) to do so again, or they will
have their account suspended for a subsequent 60-day period before being disconnected. We currently plan to
further modify our disconnection policies in mid-2012 to eliminate this subsequent 60-day grace period and to
disconnect customers who have not been charged an access fee or “topped-up” their account during the preceding
60 days.
Customer turnover, frequently referred to as churn, is an important business metric in the
telecommunications industry because it can have significant financial effects. Because we do not require
customers to sign fixed-term contracts or pass a credit check, our service is available to a broad customer base
and, as a result, some of our customers may be more likely to have their service terminated due to an inability to
pay.
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