Sprint leaps onto the 'unlimited' heap with voice + data plan
Sprint Nextel last Friday announced two unlimited calling plans in response to the price war launched by Verizon Wireless, two weeks ago, and followed up by AT&T, T-Mobile and US Cellular.
The new "Simply Everything" unlimited calling plan for $99.99 per month includes unlimited voice, data, text, e-mail, Internet browsing, Sprint TV, Sprint Music, GPS Navigation, Direct Connect and Group Connect. A cheaper $89.99 plan includes unlimited voice and text messaging, but does not include the other amenities.
Other carriers' $99.99 plans are limited to voice only, except for T-Mobile whose plan also included unlimited text messages.
Some mobile customers initially may have stayed away from adding unlimited data plans or using data at all due to confusion over pricing. Now Sprint hopes bundling unlimited data in its $99.99 plan will help drive data use.
Verizon Wireless and AT&T offer unlimited voice only for $99.99 per month, but since they are the US' two largest mobile, they are in a position to let their competitors offer bigger deals before responding with drastic changes. For example, a $5 additional charge per month on AT&T will offer 200 messages, while $35 extra per month will give its customers unlimited data and messaging. As already mentioned, T-Mobile's plan includes unlimited calling and messaging, including data, text, instant messages, and pictures.
Users with family plans on the Sprint service will receive a $5 discount per line on each bill, so two lines will be $194.98 rather than $199.98.
Mobile carriers have been forced to bundle additional features with data plans as they also lower prices to remain competitive. Aggressive price cuts offer customers a new opportunity to go beyond voice plans, allowing them to focus more on data coverage options and carrier network speeds. Unlimited calling plans are not for those who use their mobile phones sparingly, but should prove to be beneficial for those who chat often and had to pay higher prices for more minutes.
Sprint's price announcement comes on the same day it told investors it lost $29 billion and more than 683,000 subscribers in its most recent financial quarter, which ended on Dec. 31. Sprint expects at least 1.2 million subscribers to leave the struggling carrier during the first quarter of 2008. Analysts are on the fence as to whether or not the company's unlimited calling plans, even with additional perks, will be able to save it from sliding further downhill in 2008.