Sprint’s chief executive Gary Forsee told a Goldman Sachs investor conference yesterday that Sprint is thinking about expanding the test area for an unlimited calling plan that doesn’t require customers to sign a contract. Customers pay a monthly fee for as long as the service is required or affordable. Rivals Leap Wireless and MetroPCS already offer commitment free unlimited calling plans.
People with poor credit are wary of signing contracts that lock them in to monthly payments for 12-24 months. Most unlimited calling plans require such a commitment. Sprint is hoping to add subscribers by enticing contract shy consumers with the bait of unlimited calling.
Plans offered by Rivals Leap and MetroPCS are limited to their coverage areas, which is in no way national in scope. Nextel has more national coverage in America and could make inroads into the less populated parts of the country, while competing in large markets. Mr. Forsee didn’t give any particularities about Sprint’s new venture, so you’ll have to keep reading MobileCrunch for updates.
Unlimited calling plans can be notorious for fees that consumers aren’t aware of because they don’t carefully read their contracts. This is also true with the unlimited plans offered by Rivals Leap Wireless and MetroPCS. For example, roaming minutes may be limited, which incur cost when calling outside the coverage area. Sprint can capitalize on the competition by pointing out its coverage is greater, reducing roaming costs.
Wireless providers like the accountable income stream that contracts provide. The largest providers may shun contract-less unlimited calling plans, keeping this as an enticement to commit to a long-term agreement. Since Sprint-Nextel is the #3 provider in the U.S., it is looking for divergent ways to increase its market share. No contract unlimited calling may be the gimmick that a cash strapped nation looks to for its mobile phone service in the future.
He’s talking about Boost Mobile, the wholly owned prepaid subsidiary, which has been trialling unlimited plans in several markets since early this year.. and gary has talked about it in every investor call this year…. sorry to say mobilecrunch, but you are not really ‘breaking’ a story about a ‘new venture’ here.
MobileCrunch isn’t claiming that it is breaking a new story here, it is only reporting that Sprint has plans to expand its experiment into contract free unlimited calling. A major carrier that may offer this nationally has big implications for the mobile phone industry. You do see how this could change things, don’t you Nevermind? MobileCruch isn’t the AP. We offer analysis with many of our stories. Nevermind, keep reading MobileCrunch to get intelligant opinion and analysis that you won’t get anywhere else.
To add to the above – LEAP and Metro do offer roaming, albeit for a premium above the price of the unlimited airtime. Boost Unlimited and the LEAP offerings are probably extremely similar in feature set. Nothing that new here.
If Sprint launches this under their brand rather than a separate brand, I think it’s pretty significant. The future of wireless voice is not counting minutes or being tied down by a contract…especially if the iPhone is any indication that consumers are willing to pay full price for a phone.
It is a big deal IF it is Sprint. (It was (is?) offered here in the SF area as a test last spring.
Didn’t seem to be heavily promoted. $129/mo. as i recall.
Nextel has had unlimted, i believe, for some time. Their poor quality isn’t good enuf for most heavy business users.