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Sprint Raises the Bar with Unlimited Everything
28 Feb, 2008
Sprint matched its competitors and then some by unveiling a $100/month unlimited plan, branded “Simply Everything,” which includes unlimited voice, data, text, e-mail, Web-surfing, TV, music, GPS navigation, Direct Connect and Group Connect services. Sprint has trumped their competitor’s unlimited plans by including data and messaging services in the $100/month unlimited plan. Some analysts are saying Sprint missed an opportunity by taking so long to match competitors and the unlimited momentum "ship may have already sailed." The $100/month unlimited plan is not seen as a mass market plan, and only appeals to a limited segment. Sprint will have a hard time reaching through its first to market competitors and engaging that segment. Interestingly enough, Sprint was actually the first carrier to offer an unlimited plan at $120/month, but only in a few trial markets. Perhaps their delay was caused by some distraction. After all, they also announced a $29 billion dollar loss today, with another $30 billion dollar write down from the Nextel merger coming soon. They also predict losing over 1.2 million subscribers in the first quarter alone – just about the same amount they lost in all of 2007. Ouch!
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Telecompetitor is a leading industry blog covering the telecom competitive landscape. We provide insight, analysis, and commentary on the issues and implications of the evolving telecom competitive landscape.
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Featured Article
Time to Prepare for DOCSIS 3.0 is Now
07 Aug, 2008
Second quarter results for broadband growth were a tad underwhelming. There are any number of factors which probably contributed to this slowdown, with the economic slowdown and housing crisis certainly towards the top of the list. But growth is also slowing because broadband penetration has grown considerably over the past few years, now ranging somewhere between 50% to 60% (depending on who you ask), and is beginning to slow down. There certainly is more room for growth, but at some point in the near future, broadband penetration will slow even more as it approaches saturation. It’s anyone’s guess what saturation is, but I would bet somewhere around 75% penetration of households (as a national average - individual markets will vary widely). From a service provider’s point of view, that suggests that posting continuing net adds of broadband customers will increasingly involve convincing a competitor's broadband customer base to switch service.