Overview of
Cricket Wireless
Lifeline
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June 2010
Cricket Background
• Parent Company - Leap Wireless
International, Inc. (NASDAQ: LEAP)
• Founded in 1998
• Headquartered in San Diego, CA
• Markets in 35 states; Nationwide
Coverage
• Over 5.4 million customers
• 7th Largest Wireless Provider in US
Consumer Focused Business
Model
®
•
Unlimited, Flat-Rate Mobile
Voice and Data Services
•
No Long-Term Service
Contracts
•
No Early Termination Fees
•
No Credit Checks
•
Underserved Customer
Demographics
•
Simple, Easy-to-Understand
Pricing & Predictable Bills
Our Customer Demographics
60% From
Ethnic Groups*
45% Younger
Than 35*
* Source: Cricket Q2 09 Customer Survey, Cricket customer database, Yankee Group, M:Metrics
50% Earn Less
Than $35,000/yr*
Providing Customers Value
>90% Use
Cricket as
Primary Phone*
>75% Use
Cricket as
Only Phone*
~1,500
minutes/month
average*
*Source: Cricket Q2 09 Customer Survey, Cricket customer database, Yankee Group
~82% Use Text
Message Each
Month*
Cricket Lifeline
– Overview of Lifeline
•
•
Designed to ensure that quality telecommunications services are available to low-income customers at
reasonable and affordable rates.
Qualified customers can receive the following:
• Monthly Subsidy of $13.50/household for phone services (landline or wireless)
• A 50% reduction in their activation fee (up to $30) which is also reimbursed by USF
– Cricket Offering
• Qualified customers will receive a monthly discount of $13.50 off of any Cricket rate plan
– Plans begin at $30 per month for unlimited local and long distance with nationwide coverage
• Will receive 50% reduction ($7.50) off the activation fee of $15.00
– Unlimited Cricket Rate Plans
•
•
All rate plans include unlimited local and long distance calling with nationwide coverage. Additional
features available either through rate plans or purchase at $5.00 per month
Most popular plan - $40 includes:
+ Unlimited Local
+ Unlimited Long Distance
+ Unlimited US Text
Messaging
+ Unlimited Picture Messaging
+ Unlimited Video
Messaging
+ Unlimited Mobile Web
+ Unlimited Directory
Assistance
+
+
+
+
+
Voice Mail
Call-Waiting
3-Way Calling
Caller-ID
Call-Forwarding
Lifeline Marketing (OR)
Lifeline Marketing (OR)
ETC Application Process
• Application Process
– Vast difference between states. Some long and involved and others much more
condensed
• Rules and regulations primarily directed to wireline
companies
– Trying to fit a square peg in round hole
– Cellular coverage areas do not have hard fast boundaries
• In most states, wireless providers are not eligible for
state USF funds
• Focus different when applying for Low Cost Support only
– Wire center issues
Cricket ETC Applications
• Applications Approved:
–
–
–
–
Oregon
Missouri
Maryland
South Carolina
• Applications Pending:
–
–
–
–
–
–
–
FCC – District of Columbia, New York, North Carolina, Pennsylvania, Virginia
California
Pennsylvania
Arizona
Colorado
Texas
Illinois