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LEAP » Topics » Cricket Business Strategy

These excerpts taken from the LEAP 10-K filed Feb 27, 2009.
Cricket Business Strategy
 
  •  Target Underserved Customer Segments.  Our services are targeted primarily toward market segments underserved by traditional communications companies. On average, our customers tend to be younger and have lower incomes than the customers of other wireless carriers. Moreover, our customer base also reflects a greater percentage of ethnic minorities than those of the national carriers. We believe these underserved market segments are among the fastest growing population segments in the U.S.
 
  •  Maintain Industry Leading Cost Structure.  Our networks and business model are designed to provide wireless services to our customers at a significantly lower cost than many of our competitors. As we continue to build out new markets, we expect to continue to spread our fixed costs over a growing customer base. We seek to maintain low customer acquisition costs through focused sales and marketing initiatives and cost-effective distribution strategies.
 
  •  Continue to Develop and Evolve Products and Services.  We continue to develop and evolve our product and service offerings to better meet the needs of our target customer segments. For example, during the last two years, we introduced our new Cricket Broadband and Cricket PAYGo services, added unlimited mobile web access to our product portfolio and introduced new higher-priced, higher-value rate plans that allow unlimited calling from any Cricket calling area. With the completion of our deployment of CDMA2000® 1xEV-DO, or EvDO, technology across all of our existing and new markets, we are able to offer an expanded array of services to our customers, including high-demand wireless data services such as mobile content and high quality music downloads. We believe these and other enhanced data offerings will be attractive to many of our existing customers and will enhance our appeal to new data-centric customers. We expect to continue to develop our voice and data product and service offerings in 2009 and beyond.
 
  •  Build Our Brand and Strengthen Our Distribution.  We are focused on building our brand awareness in our markets and improving the productivity of our distribution system. Since our target customer base is diversified geographically, ethnically and demographically, we have decentralized our marketing programs to support local customization and better target our advertising expenses. We are in the process of redesigning and re-merchandizing our stores and introducing a new sales process aimed at improving our customers’ experience. We have also established our premier dealer program which features third party retail locations with the look and feel of company-owned stores, and we are in the process of enabling our premier dealers and other indirect dealers to provide greater customer support services. In addition, we have increased our use of sales via the internet and telephone, which continue to deliver a growing number of new customers. We expect these changes will enhance the customer experience and improve customer satisfaction.
 
  •  Enhance Established Existing Markets and Develop Strategic Roaming Partnerships.  We continue to expand our network coverage and capacity in many of our existing established markets by deploying additional cell sites, thereby allowing us to offer our customers a larger, higher-quality local calling area. During 2008, we deployed approximately 400 new cell sites in our established existing markets, thereby adding approximately 2.8 million POPs to our network footprint in these markets. We currently plan to deploy up to an additional 600 cell sites in our existing markets by the end of 2010. In addition, we have significantly expanded the size of the network footprint available to our customers with the introduction of our Premium Extended Coverage program, which gives our customers the advantage of the largest unlimited roaming coverage area of any low cost, unlimited carrier. Under this program, we have established strategic roaming partnerships with 14 wireless carriers to provide our customers with unlimited usage in areas stretching from New York to California and from Wisconsin to Texas. The service is currently available to all of our Cricket Wireless customers; it is included at no additional charge in our premium rate plans and is available with all other rate plans for an additional monthly fee. Customers can also continue to purchase roaming minutes through our Cricket Flex Bucket® service, which allows our customers to pre-purchase roaming services.
 
  •  Develop Market Clusters and Expand Into Attractive Strategic Markets.  We continue to seek additional opportunities to develop and enhance our market clusters and expand into new geographic markets by acquiring spectrum and related assets from third parties, by participating in new partnerships or joint


4

Table of Contents

  ventures or by participating in FCC spectrum auctions. In 2008, we and Denali Operations launched new markets in Oklahoma City, southern Texas, Las Vegas, St. Louis and the greater Milwaukee area covering approximately 11 million additional POPs. We and Denali Operations intend to launch markets covering approximately 25 million additional POPs by the middle of 2009 (which includes the Chicago market launched by Denali Operations in February 2009).
 
Cricket
Business Strategy


 


































































  • 
Target Underserved Customer Segments.  Our
services are targeted primarily toward market segments
underserved by traditional communications companies. On average,
our customers tend to be younger and have lower incomes than the
customers of other wireless carriers. Moreover, our customer
base also reflects a greater percentage of ethnic minorities
than those of the national carriers. We believe these
underserved market segments are among the fastest growing
population segments in the U.S.
 
  • 
Maintain Industry Leading Cost Structure.  Our
networks and business model are designed to provide wireless
services to our customers at a significantly lower cost than
many of our competitors. As we continue to build out new
markets, we expect to continue to spread our fixed costs over a
growing customer base. We seek to maintain low customer
acquisition costs through focused sales and marketing
initiatives and cost-effective distribution strategies.
 
  • 
Continue to Develop and Evolve Products and
Services.  We continue to develop and evolve our
product and service offerings to better meet the needs of our
target customer segments. For example, during the last two
years, we introduced our new Cricket Broadband and Cricket PAYGo
services, added unlimited mobile web access to our product
portfolio and introduced new higher-priced, higher-value rate
plans that allow unlimited calling from any Cricket calling
area. With the completion of our deployment of
CDMA2000®

1xEV-DO, or EvDO, technology across all of our existing and new
markets, we are able to offer an expanded array of services to
our customers, including high-demand wireless data services such
as mobile content and high quality music downloads. We believe
these and other enhanced data offerings will be attractive to
many of our existing customers and will enhance our appeal to
new data-centric customers. We expect to continue to develop our
voice and data product and service offerings in 2009 and beyond.
 
  • 
Build Our Brand and Strengthen Our
Distribution.  We are focused on building our
brand awareness in our markets and improving the productivity of
our distribution system. Since our target customer base is
diversified geographically, ethnically and demographically, we
have decentralized our marketing programs to support local
customization and better target our advertising expenses. We are
in the process of redesigning and re-merchandizing our stores
and introducing a new sales process aimed at improving our
customers’ experience. We have also established our premier
dealer program which features third party retail locations with
the look and feel of company-owned stores, and we are in the
process of enabling our premier dealers and other indirect
dealers to provide greater customer support services. In
addition, we have increased our use of sales via the internet
and telephone, which continue to deliver a growing number of new
customers. We expect these changes will enhance the customer
experience and improve customer satisfaction.
 
  • 
Enhance Established Existing Markets and Develop Strategic
Roaming Partnerships.  We continue to expand our
network coverage and capacity in many of our existing
established markets by deploying additional cell sites, thereby
allowing us to offer our customers a larger, higher-quality
local calling area. During 2008, we deployed approximately 400
new cell sites in our established existing markets, thereby
adding approximately 2.8 million POPs to our network
footprint in these markets. We currently plan to deploy up to an
additional 600 cell sites in our existing markets by the end of
2010. In addition, we have significantly expanded the size of
the network footprint available to our customers with the
introduction of our Premium Extended Coverage program, which
gives our customers the advantage of the largest unlimited
roaming coverage area of any low cost, unlimited carrier. Under
this program, we have established strategic roaming partnerships
with 14 wireless carriers to provide our customers with
unlimited usage in areas stretching from New York to California
and from Wisconsin to Texas. The service is currently available
to all of our Cricket Wireless customers; it is included at no
additional charge in our premium rate plans and is available
with all other rate plans for an additional monthly fee.
Customers can also continue to purchase roaming minutes through
our Cricket Flex
Bucket®

service, which allows our customers to pre-purchase roaming
services.
 
  • 
Develop Market Clusters and Expand Into Attractive Strategic
Markets.  We continue to seek additional
opportunities to develop and enhance our market clusters and
expand into new geographic markets by acquiring spectrum and
related assets from third parties, by participating in new
partnerships or joint





4




Table of Contents



















 

ventures or by participating in FCC spectrum auctions. In 2008,
we and Denali Operations launched new markets in Oklahoma City,
southern Texas, Las Vegas, St. Louis and the greater
Milwaukee area covering approximately 11 million additional
POPs. We and Denali Operations intend to launch markets covering
approximately 25 million additional POPs by the middle of
2009 (which includes the Chicago market launched by Denali
Operations in February 2009).


 




Cricket
Business Strategy


 


































































  • 
Target Underserved Customer Segments.  Our
services are targeted primarily toward market segments
underserved by traditional communications companies. On average,
our customers tend to be younger and have lower incomes than the
customers of other wireless carriers. Moreover, our customer
base also reflects a greater percentage of ethnic minorities
than those of the national carriers. We believe these
underserved market segments are among the fastest growing
population segments in the U.S.
 
  • 
Maintain Industry Leading Cost Structure.  Our
networks and business model are designed to provide wireless
services to our customers at a significantly lower cost than
many of our competitors. As we continue to build out new
markets, we expect to continue to spread our fixed costs over a
growing customer base. We seek to maintain low customer
acquisition costs through focused sales and marketing
initiatives and cost-effective distribution strategies.
 
  • 
Continue to Develop and Evolve Products and
Services.  We continue to develop and evolve our
product and service offerings to better meet the needs of our
target customer segments. For example, during the last two
years, we introduced our new Cricket Broadband and Cricket PAYGo
services, added unlimited mobile web access to our product
portfolio and introduced new higher-priced, higher-value rate
plans that allow unlimited calling from any Cricket calling
area. With the completion of our deployment of
CDMA2000®

1xEV-DO, or EvDO, technology across all of our existing and new
markets, we are able to offer an expanded array of services to
our customers, including high-demand wireless data services such
as mobile content and high quality music downloads. We believe
these and other enhanced data offerings will be attractive to
many of our existing customers and will enhance our appeal to
new data-centric customers. We expect to continue to develop our
voice and data product and service offerings in 2009 and beyond.
 
  • 
Build Our Brand and Strengthen Our
Distribution.  We are focused on building our
brand awareness in our markets and improving the productivity of
our distribution system. Since our target customer base is
diversified geographically, ethnically and demographically, we
have decentralized our marketing programs to support local
customization and better target our advertising expenses. We are
in the process of redesigning and re-merchandizing our stores
and introducing a new sales process aimed at improving our
customers’ experience. We have also established our premier
dealer program which features third party retail locations with
the look and feel of company-owned stores, and we are in the
process of enabling our premier dealers and other indirect
dealers to provide greater customer support services. In
addition, we have increased our use of sales via the internet
and telephone, which continue to deliver a growing number of new
customers. We expect these changes will enhance the customer
experience and improve customer satisfaction.
 
  • 
Enhance Established Existing Markets and Develop Strategic
Roaming Partnerships.  We continue to expand our
network coverage and capacity in many of our existing
established markets by deploying additional cell sites, thereby
allowing us to offer our customers a larger, higher-quality
local calling area. During 2008, we deployed approximately 400
new cell sites in our established existing markets, thereby
adding approximately 2.8 million POPs to our network
footprint in these markets. We currently plan to deploy up to an
additional 600 cell sites in our existing markets by the end of
2010. In addition, we have significantly expanded the size of
the network footprint available to our customers with the
introduction of our Premium Extended Coverage program, which
gives our customers the advantage of the largest unlimited
roaming coverage area of any low cost, unlimited carrier. Under
this program, we have established strategic roaming partnerships
with 14 wireless carriers to provide our customers with
unlimited usage in areas stretching from New York to California
and from Wisconsin to Texas. The service is currently available
to all of our Cricket Wireless customers; it is included at no
additional charge in our premium rate plans and is available
with all other rate plans for an additional monthly fee.
Customers can also continue to purchase roaming minutes through
our Cricket Flex
Bucket®

service, which allows our customers to pre-purchase roaming
services.
 
  • 
Develop Market Clusters and Expand Into Attractive Strategic
Markets.  We continue to seek additional
opportunities to develop and enhance our market clusters and
expand into new geographic markets by acquiring spectrum and
related assets from third parties, by participating in new
partnerships or joint





4




Table of Contents



















 

ventures or by participating in FCC spectrum auctions. In 2008,
we and Denali Operations launched new markets in Oklahoma City,
southern Texas, Las Vegas, St. Louis and the greater
Milwaukee area covering approximately 11 million additional
POPs. We and Denali Operations intend to launch markets covering
approximately 25 million additional POPs by the middle of
2009 (which includes the Chicago market launched by Denali
Operations in February 2009).


 




Cricket
Business Strategy


 


































































  • 
Target Underserved Customer Segments.  Our
services are targeted primarily toward market segments
underserved by traditional communications companies. On average,
our customers tend to be younger and have lower incomes than the
customers of other wireless carriers. Moreover, our customer
base also reflects a greater percentage of ethnic minorities
than those of the national carriers. We believe these
underserved market segments are among the fastest growing
population segments in the U.S.
 
  • 
Maintain Industry Leading Cost Structure.  Our
networks and business model are designed to provide wireless
services to our customers at a significantly lower cost than
many of our competitors. As we continue to build out new
markets, we expect to continue to spread our fixed costs over a
growing customer base. We seek to maintain low customer
acquisition costs through focused sales and marketing
initiatives and cost-effective distribution strategies.
 
  • 
Continue to Develop and Evolve Products and
Services.  We continue to develop and evolve our
product and service offerings to better meet the needs of our
target customer segments. For example, during the last two
years, we introduced our new Cricket Broadband and Cricket PAYGo
services, added unlimited mobile web access to our product
portfolio and introduced new higher-priced, higher-value rate
plans that allow unlimited calling from any Cricket calling
area. With the completion of our deployment of
CDMA2000®

1xEV-DO, or EvDO, technology across all of our existing and new
markets, we are able to offer an expanded array of services to
our customers, including high-demand wireless data services such
as mobile content and high quality music downloads. We believe
these and other enhanced data offerings will be attractive to
many of our existing customers and will enhance our appeal to
new data-centric customers. We expect to continue to develop our
voice and data product and service offerings in 2009 and beyond.
 
  • 
Build Our Brand and Strengthen Our
Distribution.  We are focused on building our
brand awareness in our markets and improving the productivity of
our distribution system. Since our target customer base is
diversified geographically, ethnically and demographically, we
have decentralized our marketing programs to support local
customization and better target our advertising expenses. We are
in the process of redesigning and re-merchandizing our stores
and introducing a new sales process aimed at improving our
customers’ experience. We have also established our premier
dealer program which features third party retail locations with
the look and feel of company-owned stores, and we are in the
process of enabling our premier dealers and other indirect
dealers to provide greater customer support services. In
addition, we have increased our use of sales via the internet
and telephone, which continue to deliver a growing number of new
customers. We expect these changes will enhance the customer
experience and improve customer satisfaction.
 
  • 
Enhance Established Existing Markets and Develop Strategic
Roaming Partnerships.  We continue to expand our
network coverage and capacity in many of our existing
established markets by deploying additional cell sites, thereby
allowing us to offer our customers a larger, higher-quality
local calling area. During 2008, we deployed approximately 400
new cell sites in our established existing markets, thereby
adding approximately 2.8 million POPs to our network
footprint in these markets. We currently plan to deploy up to an
additional 600 cell sites in our existing markets by the end of
2010. In addition, we have significantly expanded the size of
the network footprint available to our customers with the
introduction of our Premium Extended Coverage program, which
gives our customers the advantage of the largest unlimited
roaming coverage area of any low cost, unlimited carrier. Under
this program, we have established strategic roaming partnerships
with 14 wireless carriers to provide our customers with
unlimited usage in areas stretching from New York to California
and from Wisconsin to Texas. The service is currently available
to all of our Cricket Wireless customers; it is included at no
additional charge in our premium rate plans and is available
with all other rate plans for an additional monthly fee.
Customers can also continue to purchase roaming minutes through
our Cricket Flex
Bucket®

service, which allows our customers to pre-purchase roaming
services.
 
  • 
Develop Market Clusters and Expand Into Attractive Strategic
Markets.  We continue to seek additional
opportunities to develop and enhance our market clusters and
expand into new geographic markets by acquiring spectrum and
related assets from third parties, by participating in new
partnerships or joint





4




Table of Contents



















 

ventures or by participating in FCC spectrum auctions. In 2008,
we and Denali Operations launched new markets in Oklahoma City,
southern Texas, Las Vegas, St. Louis and the greater
Milwaukee area covering approximately 11 million additional
POPs. We and Denali Operations intend to launch markets covering
approximately 25 million additional POPs by the middle of
2009 (which includes the Chicago market launched by Denali
Operations in February 2009).


 




Cricket
Business Strategy


 


































































  • 
Target Underserved Customer Segments.  Our
services are targeted primarily toward market segments
underserved by traditional communications companies. On average,
our customers tend to be younger and have lower incomes than the
customers of other wireless carriers. Moreover, our customer
base also reflects a greater percentage of ethnic minorities
than those of the national carriers. We believe these
underserved market segments are among the fastest growing
population segments in the U.S.
 
  • 
Maintain Industry Leading Cost Structure.  Our
networks and business model are designed to provide wireless
services to our customers at a significantly lower cost than
many of our competitors. As we continue to build out new
markets, we expect to continue to spread our fixed costs over a
growing customer base. We seek to maintain low customer
acquisition costs through focused sales and marketing
initiatives and cost-effective distribution strategies.
 
  • 
Continue to Develop and Evolve Products and
Services.  We continue to develop and evolve our
product and service offerings to better meet the needs of our
target customer segments. For example, during the last two
years, we introduced our new Cricket Broadband and Cricket PAYGo
services, added unlimited mobile web access to our product
portfolio and introduced new higher-priced, higher-value rate
plans that allow unlimited calling from any Cricket calling
area. With the completion of our deployment of
CDMA2000®

1xEV-DO, or EvDO, technology across all of our existing and new
markets, we are able to offer an expanded array of services to
our customers, including high-demand wireless data services such
as mobile content and high quality music downloads. We believe
these and other enhanced data offerings will be attractive to
many of our existing customers and will enhance our appeal to
new data-centric customers. We expect to continue to develop our
voice and data product and service offerings in 2009 and beyond.
 
  • 
Build Our Brand and Strengthen Our
Distribution.  We are focused on building our
brand awareness in our markets and improving the productivity of
our distribution system. Since our target customer base is
diversified geographically, ethnically and demographically, we
have decentralized our marketing programs to support local
customization and better target our advertising expenses. We are
in the process of redesigning and re-merchandizing our stores
and introducing a new sales process aimed at improving our
customers’ experience. We have also established our premier
dealer program which features third party retail locations with
the look and feel of company-owned stores, and we are in the
process of enabling our premier dealers and other indirect
dealers to provide greater customer support services. In
addition, we have increased our use of sales via the internet
and telephone, which continue to deliver a growing number of new
customers. We expect these changes will enhance the customer
experience and improve customer satisfaction.
 
  • 
Enhance Established Existing Markets and Develop Strategic
Roaming Partnerships.  We continue to expand our
network coverage and capacity in many of our existing
established markets by deploying additional cell sites, thereby
allowing us to offer our customers a larger, higher-quality
local calling area. During 2008, we deployed approximately 400
new cell sites in our established existing markets, thereby
adding approximately 2.8 million POPs to our network
footprint in these markets. We currently plan to deploy up to an
additional 600 cell sites in our existing markets by the end of
2010. In addition, we have significantly expanded the size of
the network footprint available to our customers with the
introduction of our Premium Extended Coverage program, which
gives our customers the advantage of the largest unlimited
roaming coverage area of any low cost, unlimited carrier. Under
this program, we have established strategic roaming partnerships
with 14 wireless carriers to provide our customers with
unlimited usage in areas stretching from New York to California
and from Wisconsin to Texas. The service is currently available
to all of our Cricket Wireless customers; it is included at no
additional charge in our premium rate plans and is available
with all other rate plans for an additional monthly fee.
Customers can also continue to purchase roaming minutes through
our Cricket Flex
Bucket®

service, which allows our customers to pre-purchase roaming
services.
 
  • 
Develop Market Clusters and Expand Into Attractive Strategic
Markets.  We continue to seek additional
opportunities to develop and enhance our market clusters and
expand into new geographic markets by acquiring spectrum and
related assets from third parties, by participating in new
partnerships or joint





4




Table of Contents



















 

ventures or by participating in FCC spectrum auctions. In 2008,
we and Denali Operations launched new markets in Oklahoma City,
southern Texas, Las Vegas, St. Louis and the greater
Milwaukee area covering approximately 11 million additional
POPs. We and Denali Operations intend to launch markets covering
approximately 25 million additional POPs by the middle of
2009 (which includes the Chicago market launched by Denali
Operations in February 2009).


 




These excerpts taken from the LEAP 10-K filed Feb 29, 2008.
Cricket Business Strategy
 
  •  Target Underserved Customer Segments.  Our services are targeted primarily toward market segments underserved by traditional communications companies. On average, our customers tend to be younger and have lower incomes than the customers of other wireless carriers. Moreover, our customer base also reflects a greater percentage of ethnic minorities than those of the national carriers. We believe these underserved market segments are among the fastest growing population segments in the U.S.
 
  •  Continue to Develop and Evolve Products and Services.  We continue to develop and evolve our product and service offerings to better meet the needs of our target customer segments. For example, during the last two years, we began to offer unlimited wireless broadband internet, added unlimited mobile web access to our product portfolio, and introduced new higher-priced, higher-value rate plans that allow unlimited calling from any Cricket calling area. With the completion of our deployment of CDMA2000® 1xEV-DO, or EvDO, technology across all of our existing and new markets, we are able to offer an expanded array of services to our customers, including high-demand wireless data services such as mobile content and high quality music downloads at speeds of up to 2.4 Megabits per second. We believe these and other enhanced data offerings will be attractive to many of our existing customers and will enhance our appeal to new data-centric customers. We expect to continue to develop our voice and data product and service offerings in 2008 and beyond.
 
  •  Build Our Brand and Strengthen Our Distribution.  We are focused on building our brand awareness in our markets and improving the productivity of our distribution system. Since our target customer base is diversified geographically, ethnically and demographically, we have decentralized our marketing programs to support local customization and better target our advertising expenses. We have redesigned and re-merchandized our stores and introduced a new sales process aimed at improving both the customer experience and our revenue per user. We have also established our premier dealer program, and we are in the process of enabling our premier dealers and other indirect dealers to provide greater customer support services. We expect these changes will enhance the customer experience and improve customer satisfaction.
 
  •  Maintain Industry Leading Cost Structure.  Our networks and business model are designed to provide service to our customers at a significantly lower cost than many of our competitors. As we continue to build out new markets, we expect to continue to spread our fixed costs over a growing customer base. We seek to maintain low customer acquisition costs through focused sales and marketing initiatives and cost-effective distribution strategies.
 
  •  Enhance Established Existing Markets.  We continue to expand our network coverage and capacity in many of our existing established markets by deploying additional cell sites, allowing us to offer our customers a larger local calling area. During 2007, we deployed approximately 300 new cell sites in our established existing markets, thereby adding approximately 2 million POPs to our network footprint in these markets. For example, in Arizona we significantly expanded our network footprint in our Phoenix and


4

Table of Contents

Tucson markets and are joining these two markets into a single, contiguous local calling area for the first time. We expect to deploy approximately 250 cell sites in our established existing markets during 2008.
 
  •  Develop Market Clusters and Expand Into Attractive Strategic Markets.  We continue to seek additional opportunities to develop and enhance our market clusters and expand into new geographic markets by participating in FCC spectrum auctions, by acquiring spectrum and related assets from third parties, or by participating in new partnerships or joint ventures. An example of our market cluster strategy is the Rochester, New York market we launched in 2007 to create a new market cluster in upstate New York by connecting our existing Buffalo and Syracuse markets. Examples of our strategic market expansion include the central Texas market cluster (including Houston, Austin and San Antonio) and the San Diego, California market that we acquired and launched in 2006. All of these markets meet our internally developed criteria concerning customer demographics and population density which we believe enable us to offer Cricket service on a cost-competitive basis in these markets. We also anticipate that the licenses we and Denali License purchased in Auction #66 will provide the opportunity to substantially enhance our coverage area and allow us and Denali License to launch Cricket service in numerous new markets over time, with new market launches expected to begin in 2008.
 
Cricket
Business Strategy


 
























































  • 
Target Underserved Customer Segments.  Our
services are targeted primarily toward market segments
underserved by traditional communications companies. On average,
our customers tend to be younger and have lower incomes than the
customers of other wireless carriers. Moreover, our customer
base also reflects a greater percentage of ethnic minorities
than those of the national carriers. We believe these
underserved market segments are among the fastest growing
population segments in the U.S.
 
  • 
Continue to Develop and Evolve Products and
Services.  We continue to develop and evolve our
product and service offerings to better meet the needs of our
target customer segments. For example, during the last
two years, we began to offer unlimited wireless broadband
internet, added unlimited mobile web access to our product
portfolio, and introduced new higher-priced, higher-value rate
plans that allow unlimited calling from any Cricket calling
area. With the completion of our deployment of
CDMA2000®
1xEV-DO, or
EvDO, technology across all of our existing and new markets, we
are able to offer an expanded array of services to our
customers, including high-demand wireless data services such as
mobile content and high quality music downloads at speeds of up
to 2.4 Megabits per second. We believe these and other
enhanced data offerings will be attractive to many of our
existing customers and will enhance our appeal to new
data-centric customers. We expect to continue to develop our
voice and data product and service offerings in 2008 and beyond.
 
  • 
Build Our Brand and Strengthen Our
Distribution.  We are focused on building our
brand awareness in our markets and improving the productivity of
our distribution system. Since our target customer base is
diversified geographically, ethnically and demographically, we
have decentralized our marketing programs to support local
customization and better target our advertising expenses. We
have redesigned and re-merchandized our stores and introduced a
new sales process aimed at improving both the customer
experience and our revenue per user. We have also established
our premier dealer program, and we are in the process of
enabling our premier dealers and other indirect dealers to
provide greater customer support services. We expect these
changes will enhance the customer experience and improve
customer satisfaction.
 
  • 
Maintain Industry Leading Cost Structure.  Our
networks and business model are designed to provide service to
our customers at a significantly lower cost than many of our
competitors. As we continue to build out new markets, we expect
to continue to spread our fixed costs over a growing customer
base. We seek to maintain low customer acquisition costs through
focused sales and marketing initiatives and cost-effective
distribution strategies.
 
  • 
Enhance Established Existing Markets.  We
continue to expand our network coverage and capacity in many of
our existing established markets by deploying additional cell
sites, allowing us to offer our customers a larger local calling
area. During 2007, we deployed approximately 300 new cell sites
in our established existing markets, thereby adding
approximately 2 million POPs to our network footprint in
these markets. For example, in Arizona we significantly expanded
our network footprint in our Phoenix and





4




Table of Contents






Tucson markets and are joining these two markets into a single,
contiguous local calling area for the first time. We expect to
deploy approximately 250 cell sites in our established
existing markets during 2008.


 
















  • 
Develop Market Clusters and Expand Into Attractive Strategic
Markets.  We continue to seek additional
opportunities to develop and enhance our market clusters and
expand into new geographic markets by participating in FCC
spectrum auctions, by acquiring spectrum and related assets from
third parties, or by participating in new partnerships or joint
ventures. An example of our market cluster strategy is the
Rochester, New York market we launched in 2007 to create a new
market cluster in upstate New York by connecting our existing
Buffalo and Syracuse markets. Examples of our strategic market
expansion include the central Texas market cluster (including
Houston, Austin and San Antonio) and the San Diego,
California market that we acquired and launched in 2006. All of
these markets meet our internally developed criteria concerning
customer demographics and population density which we believe
enable us to offer Cricket service on a cost-competitive basis
in these markets. We also anticipate that the licenses we and
Denali License purchased in Auction #66 will provide the
opportunity to substantially enhance our coverage area and allow
us and Denali License to launch Cricket service in numerous new
markets over time, with new market launches expected to begin in
2008.


 




This excerpt taken from the LEAP 10-K filed Mar 1, 2007.
Cricket Business Strategy
 
  •  Target Underserved Customer Segments.  Our services are targeted primarily toward market segments underserved by traditional communications companies. On average, our customers tend to be younger and have lower incomes than the customers of other wireless carriers. Moreover, our customer base also reflects a greater percentage of ethnic minorities than those of the national carriers. We believe these underserved market segments are among the fastest growing population segments in the U.S.


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Table of Contents

 
  •  Continue to Develop and Evolve Products and Services.  We continue to develop and evolve our product and service offerings to better meet the needs of our target customer segments. For example, during the last two years, we added instant messaging, multimedia (picture) messaging, games and our “Travel Timetm” roaming option to our product portfolio. In 2006, we broadened our data product and service offerings to better meet the needs of our customers, and we expect to continue to broaden these data product and service offerings in 2007 and beyond. With our deployment of 1xEV-DO technology, we believe we will be able to offer an expanded array of services to our customers, including high demand wireless data services such as mobile content, location-based services and high quality music downloads at speeds of up to 2.4 Megabits per second. We believe these enhanced data offerings will be attractive to many of our existing customers and will enhance our appeal to new data-centric customers.
 
  •  Build Our Brand and Strengthen Our Distribution.  We are focused on building our brand awareness in our markets and improving the productivity of our distribution system. Since our target customer base is diversified geographically, ethnically and demographically, we have decentralized our marketing programs to support local customization while optimizing our advertising expenses. We have redesigned and remerchandized our stores and introduced a new sales process aimed at improving both the customer experience and our revenue per user. We have also initiated our premier dealer program, and we are in the process of enabling our premier dealers and other indirect dealers to provide greater customer support services. We expect these changes will enhance the customer experience and improve customer satisfaction.
 
  •  Enhance Market Clusters and Expand Into Attractive Strategic Markets.  We continue to seek additional opportunities to enhance our current market clusters and expand into new geographic markets by participating in FCC spectrum auctions (including the recently concluded Auction #66), by acquiring spectrum and related assets from third parties, or by participating in new partnerships or joint ventures. Examples of our market cluster strategy include the Fresno, California market we launched in 2005 to complement the adjacent Visalia and Modesto, California markets in our Central Valley cluster and the Oregon cluster we created by contributing our FCC licenses serving the Salem and Eugene, Oregon markets to LCW Wireless, a joint venture which also owns and operates a license serving Portland, Oregon. Examples of our strategic market expansion include the five licenses in central Texas, including Houston, Austin and San Antonio, and the San Diego, California license that we and ANB 1 License acquired in Auction #58. All of these markets meet our internally developed criteria concerning customer demographics and population density which we believe will enable us to offer Cricket service on a cost competitive basis in these markets. We also anticipate that the licenses we purchased in Auction #66 and for which Denali License was named the winning bidder will provide the opportunity to substantially enhance our coverage area and allow us and Denali License to launch Cricket service in numerous new markets in multiple construction phases over time.
 

EXCERPTS ON THIS PAGE:

10-K (5 sections)
Feb 27, 2009
10-K (2 sections)
Feb 29, 2008
10-K
Mar 1, 2007

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