Sprint said today that it plans to launch an $80 a month mobile phone plan, to include service and device fees, in a move to appeal to users who are put off by complex price plans and hidden costs.
The new “All-in” plan will provide unlimited talk, text and data for $60 and $20 to lease phones such as the iPhone 6 and Samsung Galaxy S6, said Kevin Crull, Sprint’s chief marketing officer.
Sprint’s all-inclusive plan
Sprint is currently the number three cellular provider in the US, and it’s in the midst of implementing a turnaround plan that aims to narrow the gap with its rivals such as AT&T. The company has focused so far on offers such as reducing subscriber bills and getting them to switch from other operators, as well as doubling its data capacity and hand delivering new phones.
However, analysts are concerned over Sprint’s heavy spending to acquire customers and question if it can balance costs with investments in upgrading network infrastructure.
Recently, the mobile industry has moved away from the typical two year contracts with subsidised phones, instead preferring to offer monthly leasing plans and service fees. This has led to a price war between Sprint and rivals T-Mobile, AT&T and Verizon.
“The natural evolution of the industry is to advertise both combined: cost of the device and the rate plan, put them together and tell the customer what’s the rate all in”, said Crull.
The plan includes a one-off $36 activation fee, and will launch on Tuesday with a new video campaign fronted by English soccer star David Beckham.
SOURCE: Reuters.
Larry Banks is a keen follower of technology and finance. He has worked for a variety of online publications, writing about a diverse range of topics including mobile networks, patents, and Internet video delivery technologies.
