Cricket Wireless 2012 Annual Report Download - page 18

Cricket PAYGoTM.Cricket PAYGo is a pay-as-you-go, unlimited prepaid wireless service designed for
customers who prefer the flexibility and control offered by traditional prepaid services. Monthly pay-as-you-go
versions of our Cricket PAYGo product are available in all Cricket markets as well as through nationwide
retailers. In October 2012, we stopped selling a daily pay-as-you-go version of our Cricket PAYGo product to
new customers in order to focus on our more successful monthly service offerings.
Cricket Broadband. Cricket Broadband is our unlimited mobile broadband service offering and allows
customers to access the internet through their computers for low, flat rates that vary depending upon the targeted
amount of data that a customer expects to use during the month. These service plans are also “all-inclusive” and
do not require long-term commitments or credit checks. The service is available in all Cricket markets as well as
through nationwide retailers. As a result of strong customer adoption of our smartphones and other new handsets
and devices, we have deemphasized our Cricket Broadband service and have experienced a substantial reduction
in the number of customers subscribing to this service.
We expect to continue to develop our product and service offerings in 2013 and beyond to better meet our
customers’ needs.
Devices
Our current device portfolio includes a wide spectrum of devices ranging from higher-end smartphones to
lower-cost feature phones. Our portfolio of devices provides features that include full web capabilities, mobile
web browsers, picture-enabled caller ID, high-resolution cameras with digital zoom and flash, integrated FM
radio and MP3 stereo, USB, infrared and Bluetooth connectivity, on-board memory and other features to
facilitate digital data transmission.
During 2012, we continued to introduce higher-quality, higher-priced devices in our portfolio, including
devices manufactured by Samsung, HTC, LG and others. We also introduced the iPhone 4, 4S and 5 to our
device line-up in markets that utilize PCS spectrum. We currently offer three LTE-compatible devices and expect
to launch additional LTE devices in 2013.
Beginning in the second half of 2012, we increased the average out-the-door selling price for our devices as
part of our strategy to manage the amount we spend to subsidize devices we sell to new and current customers. 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 device, and we plan to expand the availability and type of device
financing programs we offer in 2013.
Customer Care and Billing
We outsource our call center operations to multiple call center vendors to manage the cost of providing care
to our customers, while still maintaining the quality of our customer care. One of our strategic priorities is to
continue to improve ways that we resolve customer service issues, including by introducing more self-service
alternatives for customers and improving the quality of the call center services we provide. We are focused on
improving the experience we provide our customers so that they choose to remain a Cricket customer for a longer
period.
We outsource our billing, device provisioning and payment systems to external vendors and also outsource
bill presentment, distribution and fulfillment services. In recent years, we have upgraded a number of our
significant, internal business systems, including implementing a new inventory management system, a new point-
of-sale system and a new customer billing system. We believe that these new systems have improved customer
experience, increased our efficiency, enhanced our ability to provide products and services, enabled us to better
scale our business operations and reduced our operating costs.
4