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Sprint / Softbank @ 2014 Leveraged Finance Conference Tuesday, December 2, Boca Raton, FL


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This has been skimpily reported. Here is my take with almost quotes:


2014 Leveraged Finance Conference Tuesday, December 2, Boca Raton, FL

Joe Euteneuer, Chief Financial Officer

Yoshimitsu Goto, Managing Executive Officer, SoftBank Corp


Joe Euteneuer, Chief Financial Officer:

What we have on the network is:

  • 260 million pops covered by 1.9 LTE
  • We will have 800 voice done by year end [1x800]
  • We are 90 million covered pops on 2.5 and will be 100 million pops by year end
  • We have started LTE 800 deployment and should be done by the end of next year

All phones sold are now triband, only the iPhone 6 does not have Wi-Fi calling capabilities (will have it downloaded to it in the next 60 to 90 days).


Yoshimitsu Goto, Managing Executive Officer, SoftBank Corp:

Spoke Japanese


Softbank would like to supply Sprint with as much support as possible in terms of network quality, equipment and phone selection. Softbank CTO and technology team engineers have been moved to Kansas so we may work together.


Joe Euteneuer, Chief Financial Officer:

Sprints issue in the last 9 months were external. Last several years were helped by triband phone sales, smartphone $10 fee, 60% conversion of iden users rather than 30% expected. Saw effects in 2013 of having the entire network under construction. Great start, but posting of account info doomed Framily. T-mobile early termination offer really drew customers who were dissatisfied because of construction issues. Marcello decided we really needed to turn our subscriber numbers around. First month gross adds went from 10% to 16%. Prime customers increased dramatically, went net port positive for the first time in a year. Growing long term value meant pulling the Band-Aids off. Volume now is so great we are out hiring 500 more sales reps.


How to evaluate Sprint going forward:

  • Post-paid handset adds
  • Have to make sure we are bring churn down
  • Need to take 1.5 billion of expenses out going into 2015. We need to do that and more.
  • Continued investment in the network to make sure we stay competitive from a network standpoint

Net net AT&T and Verizon users will be getting about a 20% discount with new plan and may get even a better deal from existing plans. Went after them because that is where they are getting good results and that is where the prime customers are plus 75% of the market.


Cap ex is less but targets remain the same and have been met for 2014. Helped by Softbank CTO and 100 engineers, learning more cost efficient methods of deployment from Japan, getting better rates, and cost avoidance because we were back on time.


Yoshimitsu Goto, Managing Executive Officer, SoftBank Corp:


From a financial capability wise Sprint is not as good as AT&T and Verizon, but from a financial capability side we should provide the maximum capability out of it [Cap-Ex funds]. We have helping to solve the technical issues in congested areas because of the wisdom we may have.


Joe Euteneuer, Chief Financial Officer:


[besides usual triband stuff,] we want to integrate new WiFi calling capabilities for better coverage.


Chicago O’Hare airport is a good example of Sprint deployment.


Leasing is all about taking the residual value off of Sprint’s books and simplicity for consumer. We have the opportunity to have them trade up early to new phone.


Using vendor financing for NV and 2.5 equipment plus selling receivables.


Yoshimitsu Goto, Managing Executive Officer, SoftBank Corp:


Financial capability is very high at Sprint plus they have access to the bond markets. Expect that they will be able to remain self-financed, but would fund if needed to improve capabilities.


Joe Euteneuer, Chief Financial Officer:


With Softbank, we exchange best practices and learn how to leverage our scale. We have learned so much from them on the network side, especially 2.5. They have top gun teams touring the country. We are a lot more cohesive. Trust factor and integration is at its best ever.


Yoshimitsu Goto, Managing Executive Officer, SoftBank Corp:


We have a real-time picture of the financing at Sprint. We are known as a long-term investor.



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Now that I'm moving in Feb and won't need an airrave because I'll have amazing service there, it makes me sad I really won't need wifi calling. But I'll use it anyways to conserve battery while at home.



Sent from my iPhone 6 on Crapatalk

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