Tren Griffin @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. Jan. 28, 2020 1 min read

1/ Sprint postpaid phone monthly:

average revenue per user $50.37

churn 2.06%.

"This quarter, like every other quarter, results were, well, bad. Churn remains high, EBITDA growth is negative and free cash flow is nowhere to be found." MoffettNathanson 

2/ "Absent the merger, Sprint will eventually need to either start generating free cash flow or they will have to restructure.”

"MoffettNathanson said Sprint could emerge from Chapter 11 in a better competitive condition “than any time in the last 10 years."

3/ 25iQuiz: Assume revenue per customer is $50 a month, churn 2% a month, gross margin 50% and a cost of money of 10%. All numbers rounded to make the math easier. What is the cost per gross customer addition (CPGA) that is lifetime value (LTV) break even? 

4/ "Their network isn’t good enough to retain customers, so churn is high....that means that the lifetime value of customers they are acquiring isn’t high enough to support sufficient reinvestment in the network…and so the desperate cycle continues.” 

You can follow @trengriffin.


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