Sprint is debuting a new four day promotional deal that decreases the price of the major US wireless carrier’s unlimited plan to $50 per month. At this price, those who avail of the special offer will get to enjoy unlimited data, plus unlimited voice calls and text messaging for ten dollars less than the normal cost. Sprint continues to offer a second line of service for $40 a month more, and any extra line added is $30 each.
Many will see this as a direct response to the promo that industry leader Verizon Wirelessintroduced a little more than a week ago, which offers 5 gigabytes of data monthly for $55. Taking a dig at the Big Red, Roger Sole, the chief marketing officer of Sprint, took to the official blog of Sprint, effectively saying that Verizon’s approach to wireless data may be outdated. He pointed out that video data traffic on mobile devices is doubling every 18 months. Sole further added that nearly half of all households in the United States now depend completely on mobile devices, even to the point of letting go of their landline phones.
The biggest wireless carrier in America has publicly expressed its disdain for unlimited mobile plans on more than one occasion. But recently, Verizon Wireless may be looking to open up to other options. As suggested by Matt Ellis, the chief financial officer of Verizon, the carrier is actively seeking other solutions, and while it feels that offering unlimited is still not necessary, it may adjust its approach depending on what is happening in the wireless market.
Will Sprint’s new promo affect Verizon Wireless’ stand? If Sprint makes enough noise about its latest deal, it is quite possible that it may draw some subscribers from Verizon, and maybe even from T-Mobile. And because the special offer is offered for a limited time only, it may spur mobile users to act now, which should produce at least favorable short term results for Sprint.
Sprint and T-Mobile may be aggressive in offering unlimited options, but some industry watchers believe this particular model is still untested. Back in August of last year, both wireless carriers had debuted their respective unlimited plans, and T-Mobile even doubled down on the model at the start of this year when it started including taxes and fees in the price. But MoffettNathanson downgraded shares of T-Mobile from buy to neutral, due to concerns regarding the state of the wireless market as prices drop while data usage is increasing more than ever.
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