Sprint Corporation S recently introduced an unlimited text, talk and data plan for $80 in place of its current $70 scheme. The plan’s charges include smartphone device fees as well. Interestingly, soccer star David Beckham has been roped in to promote this “All-in” pricing plan.
Under the new scheme, Sprint will charge $60 for limitless text, talk and data and the remaining $20 will be lease payment for a 16 GB smartphone of the customer’s choice. For extra internal memory, customers will have to pay over $20 a month and $36 as a one-time activation fee.
Meanwhile, Sprint is focusing on reviving its customer base after a prolonged period of high customer churn. In order to check churn and allure customers from other industry players, the company is introducing new plans with higher data provision. Earlier, the company had come up with a scheme which claimed to reduce phone bills of AT&T T and Verizon Communications VZ customers by 50%, provided the users switched to Sprint.
Also, in the beginning of June this year, Sprint had introduced a “Monthly Data Rolling” plan for its prepaid customers. This plan offers unlimited talk and text option and is available at Best Buy Co., Inc. BBY. Importantly, this data plan allows customers to roll over unused data of up to 30GB in contrast to schemes launched by other wireless carriers which are scheduled to expire after a certain period.
Meanwhile, aggressive pricing competition, these days, is compelling large telecom operators to invest more in promotional activities. We believe that such promotional strategies should drive the company’s top line, average revenue per user (ARPU) and simultaneously, help reduce customer churn over the long haul. However, such extensive investments will substantially escalate the company’s marketing expenses going ahead.
Sprint currently carries a Zacks Rank #3 (Hold).
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