Cricket Wireless 2012 Annual Report Download - page 3

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2012 YEAR IN REVIEW
1
“We have expanded our
lineup of full-featured
and iconic devices
which, together with
our high-value service
plans, are expected to
keep customers with
us longer.”
Doug Hutcheson
Chief Executive Officer and Director
Leap Wireless International, Inc.
DEAR FELLOW STOCKHOLDERS:
For pre-paid wireless carriers across the board, 2012 was a difficult year. Growth slowed
as the wireless industry matured and penetration hit well over 100 percent. Consumer
demand for higher-end devices shifted momentum back toward post-paid wireless
carriers, which typically offer lower out-the-door device pricing by locking customers into
two-year contracts.
Like many of our peers, we lost customers in what has been and continues to be a
challenging market. While we have made progress in key areas, the executive leadership
team and I are not satisfied with our results. In the face of intense competition, we are
responding aggressively and taking deliberate steps to transform our business.
First and foremost, we continue to advance the Cricket customer experience. Unlike
contract carriers, we have to earn our customers’ business every month by exceeding
their expectations at every point: from the in-store experience to the device experience
to the customer care experience.
We also continue to take a disciplined approach to managing costs. Last year we
aggressively managed operating and capital expenses, refocusing our spending on
only those projects that drive the greatest return and provide the most benefit to our
customer experience.
Our ultimate goal is to become the pre-paid carrier of choice by delivering a post-paid
experience with the value and flexibility of no contracts – and to do it profitably.
We are a business positioning for a transformation, and we continue to take both
immediate and longer-term actions designed to generate positive free cash flow. We are
focused on profitable growth, and if we can deliver the right customer experience there is
a big opportunity for us to take market share from post-paid carriers.