Daigle+strategy+report

. TO: Proximity Mobile Team

FROM: Ted Daigle

DATE: January 6, 2010

SUBJECT: Cricket strategy analysis


 * Cricket, a new contender? **

Cricket Communications, Inc. was  founded in 1999. This private company, provides wireless services to about 4.6 million customers in parts of 35 US states. Cricket uses a flat rate billing method, offering rate plans from $25 to $60 per month before taxes by way of month-to-month contracts only; it does not require credit checks or long-term service contracts as other service providers in the U.S. The company recently launched the first Advanced Wireless Services network, in Oklahoma City (Wikipedia, 2010). Cricket covers about half of the continental United States, and has broadband coverage in many major metropolitan areas.


 * What does Cricket have to offer? **

Cricket offers phone services that features: unlimited talk, high quality 3G broadband, no signed contracts, no overages and no credit check, all with just the basic plan. With the more advanced plans a Cricket customer will receive: unlimited text and picture messaging, unlimited long distance, unlimited mobile web, and unlimited directory assistance. Cricket uses name brand phones such as, Samsung, Nokia, LG, Motorola, etc. or handsets made by the company themselves. Cricket provides phones with the same features as the industry has to offer.

**Cricket revenue information**

Cricket being a private company, no revenue information was available for analysis.


 * Cricket by the numbers**

· 4.6 million customers in 35 states across the US, from coast to coast.

· Cricket customers report making & receiving 23.3 calls per day. (3x more than other prepaid users)

· 52% of customers send at least one text message per day vs. 33% of non-Cricket customers.

· 68% of customers use Cricket as their only phone, 90% use Cricket as their primary phone.

· <span style="color: #262626; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-bidi-font-weight: bold;">Hispanics & African Americans make up 43% of customer base. (industry base average 17%)

<span style="color: #262626; font-family: Symbol; font-size: 12pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontweight: bold; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="color: #262626; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-bidi-font-weight: bold;">45% of customers are younger than 35, 39% of wireless customers overall.

<span style="color: #262626; font-family: Symbol; font-size: 12pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontweight: bold; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="color: #262626; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-bidi-font-weight: bold;">Cricket is the first Internet Service for 47% of all broadband customers. (My Cricket.com, 2010)

<span style="color: #262626; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">
 * <span style="color: #262626; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">Strategy for Cricket **

<span style="color: #262626; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-bidi-font-weight: bold;">The demographic that Cricket is trying to reach is the young, middle class and lower, metropolitan area peoples. Cricket is not in competition with the cell phone juggernauts like AT&T, Verizon, T-Mobile and Sprint. Cricket is going after companies like Boost, Virgin, Jitterbug and other "pay as you go" mobile companies. Cricket is the best option for a month-to-month calling plan, as long as you live in the major cities or within close proximity, or else you'll have minimal service at best. Cricket can not compete with the big boys of the Mobile World, but can give the little guys a run for their money.


 * Gen Y Implications**

Cricket could very well be the provider that Gen Y customers should use if they don't have the best credit or the lack of parental assistance. Cricket offers an independant account for the Gen Y with all the same features as other companies offer at a competitive rate. This company offers unlimited everything for $60 per month. Cricket could only improve if they supported the high end Smartphones, ie. Apples iPhone, RIM's Blackberry, and Droid.


 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">REFERENCES: **

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%;">My Cricket.com January 6, 2010. (retrieved Jan. 6, 2010) []

Wikipedia, January 6, 2010 (retrieved Jan. 6, 2010) []