Competition in the U.S. telecom industry is intensifying day by day. Leading telecom operators are coming up with new data and credit plans to lure subscribers from competitors. The latest of this trend is Sprint Corp.’s (S) decision to pay at least $200 instant trade in value to all T-Mobile US Inc. (TMUS) customers when they take their wireless number to a participating Sprint store and trade in their current working T-Mobile smartphone.
This offer will be available till Apr 9, 2015. Additionally, this credit facility can be combined with a contract buy-out credit worth up to $350 per line through a prepaid or reward card to cover any T-Mobile subscribers’ instalment billing balance on their current device or early termination fees after online registration.
In Dec 2014, Sprint had introduced an innovative product which provides same data plan similar to the offerings of Verizon Communications Inc. (VZ) and AT&T Inc. (T) at 50% discount in perpetuity.
In the same month, T-Mobile introduced a “Data Stash” plan which allows customers to roll over unused data for a year even after the expiry of the billing period. Cutthroat pricing competition is compelling large telecom operators to indulge in higher promotional activities.
Recently, Sprint declared that it added a net 967,000 customers in the third quarter of fiscal 2014 (ended Dec 2014), including 30,000 postpaid users, 410,000 prepaid and 527,000 wholesale users.
Similarly, T-Mobile also gained a net 1.3 million postpaid subscribers in the same quarter. At the end of 2014, Sprint had a total of 56.004 million customers while T-Mobile had 55.018 million subscribers.
Both Sprint and T-Mobile currently carry a Zacks Rank #3 (Hold).
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