Click to edit Master subtitle style Overview of Cricket Wireless Lifeline June 2010.

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Presentation transcript:

Click to edit Master subtitle style Overview of Cricket Wireless Lifeline 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 7 th 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 ®

60% From Ethnic Groups* 45% Younger Than 35* 50% Earn Less Than $35,000/yr* Our Customer Demographics * Source: Cricket Q2 09 Customer Survey, Cricket customer database, Yankee Group, M:Metrics

Providing Customers Value >90% Use Cricket as Primary Phone* >75% Use Cricket as Only Phone* ~1,500 minutes/month average* ~82% Use Text Message Each Month* *Source: Cricket Q2 09 Customer Survey, Cricket customer database, Yankee Group

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: + Voice Mail + Call-Waiting + 3-Way Calling + Caller-ID + Call-Forwarding + Unlimited Video Messaging + Unlimited Mobile Web + Unlimited Directory Assistance + Unlimited Local + Unlimited Long Distance + Unlimited US Text Messaging + Unlimited Picture Messaging

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