Cricket Wireless 2012 Annual Report Download - page 17

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download service we developed specifically for mobile handsets, which is now offered for no additional
cost in service plans for our Android-based smartphones. We have also introduced Lifeline service
offerings in a number of states, which provide qualifying low-income customers with a subsidized
discount on their wireless service. We offer current and new customers a diverse handset line-up, ranging
from higher-end smartphones to lower-cost feature phones. In addition, through a third party we have
introduced a device leasing program in certain of our markets to help customers manage the cost of
purchasing a handset, and we plan to expand the availability and type of handset financing programs we
offer in 2013. We plan to continue to develop our product and service offerings in 2013 and beyond.
•Focus on Smart Investments. Our strategy is to be disciplined in pursing investment initiatives and to
remain focused on our position as a low-cost provider of wireless telecommunications. During the third
quarter of 2012, we increased pricing on our devices in an effort to better manage device subsidies and
promote the addition of longer-tenured customers. We also plan to streamline and reduce our number of
direct and indirect dealer locations in 2013 to attempt to increase the productivity of more attractive
locations. In 2012, we continued to enhance our network to allow us to provide customers with high-
quality service. We are also exploring cost-effective ways to deliver LTE services to additional
customers, including by deploying facilities-based coverage and by entering into partnerships or joint
ventures with other carriers. We have deployed LTE across approximately 21 million POPs in our
network footprint and may deploy the service across up to an additional approximately 10 million POPs
in 2013. In addition, we have recently entered into LTE roaming and wholesale arrangements and may
enter into additional partnerships or joint ventures with other carriers. We intend to be disciplined as we
pursue delivery of additional LTE services to our customers and to remain focused on our position as a
low-cost provider of wireless telecommunications.
Cricket Business Operations
Cricket Products and Services
Cricket Wireless. Our Cricket Wireless service plans are designed to attract customers by offering simple,
predictable and affordable nationwide voice and data services that are a competitive alternative to traditional
wireless and wireline services. We offer service on a flat-rate, unlimited usage basis, without requiring fixed-
term contracts, early termination fees or credit checks.
Our most popular Cricket Wireless service plans bundle unlimited voice and data services, which include
local and U.S. long distance, text messaging, mobile web, 411 services, navigation, data back-up and other
features. The service plans we currently offer are “all-inclusive,” with telecommunication taxes and certain fees
included within the service plan price. We also offer a flexible payment option, BridgePayTM, which gives our
customers greater flexibility in the use of and payment for our Cricket Wireless service and which we believe
helps us to retain customers.
Muve Music. We also offer Muve Music, an unlimited music download service designed specifically for
mobile handsets. We launched Muve Music in 2011 and the service is now offered for no additional cost in
service plans for our Android-based smartphones. Muve Music was available to more than 1.1 million Cricket
customers as of December 31, 2012 and is currently among the largest on-demand music subscription services in
the U.S. as measured by the number of paid users.
Cricket Lifeline. We participate in the federal government’s Lifeline program, which provides support
from the federal universal service fund, or USF, to subsidize discounted telecommunications services for
qualified low-income consumers. Through our Cricket Lifeline program, we provide qualified customers with a
monthly credit that they can apply to their phone service with us. In order to participate in the Lifeline program
in any given state, a carrier must be designated as an eligible telecommunications carrier, or ETC, in that state.
As of December 31, 2012, Cricket had been designated as an ETC in 27 states and the District of Columbia. We
plan to continue to develop and expand the Lifeline service offerings we provide and to launch the program in
additional states.
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