(2) Retail ARPU (Average Revenue Per User) is total revenue less wholesale revenue, the revenue generated from the sales of devices, shipping revenue, and other revenue; divided by the weighted average number of retail subscribers in the period, divided by the number of months in the period.
Management uses retail ARPU to identify average revenue per customer, to track changes in average retail customer revenues over time, to help evaluate how changes in the business, including changes in the company's service offerings and fees, affect average retail revenue per customer, and to assist in forecasting future service retail revenue. In addition, retail ARPU provides management with a useful measure to compare the company's customer retail revenue to that of other wireless communications providers. The company believes investors use retail ARPU primarily as a tool to track changes in the company's average retail revenue per customer and to compare Clearwire's per retail customer service revenues to those of other wireless communications providers.
|Three months ended|
|(in thousands)||December 31, 2012||September 30, 2012||June 30, 2012||December 31, 2011|
|Total revenues||$ 311,241||$ 313,882||$ 316,932||$ 361,870|
|Device and other revenue||(15,763)||(15,956)||(14,694)||(14,540)|
|Retail ARPU revenue||$ 178,888||$ 181,428||$ 184,678||$ 183,248|
|Average retail customers||1,352||1,342||1,335||1,308|
|Months in period||3||3||3||3|
|Retail ARPU||$ 44.10||$ 45.06||$ 46.12||$ 46.69|
|(in thousands)||December 31, 2012||December 31, 2011|
|Total revenues||$ 1,264,694||$ 1,253,466|
|Device and other revenue||(67,131)||(45,675)|
|Retail ARPU revenue||$ 729,094||$ 714,130|
|Average retail customers||1,335||1,265|
|Months in period||12||12|
|Retail ARPU||$ 45.51||$ 47.04|
(3) Churn, which measures customer turnover, is calculated as the number of subscribers that terminate service in a given period, divided by the weighted average number of subscribers in that period, divided by the number of months in that period. Retail customers are deactivated approximately 30 days after failing to pay their monthly bill or when they ask to terminate their service. Retail subscribers that discontinue service in the first 30 days of service for any reason, or in the first 90 days of service under certain circumstances, are deducted from the company's gross customer additions and therefore not included in any of the churn calculations.
Management uses churn to measure retention of the company's subscribers, to measure changes in customer retention over time, and to help evaluate how changes in the business affect customer retention. The company believes investors use churn primarily as a tool to track changes in the company's customer retention. Other companies may calculate this measure differently.