Boost Mobile L.L.C. has started trialing an unlimited CDMA calling service in some Texas and California markets, moving forward with plans to better compete against flat-rate carriers without involving parent company Sprint Nextel Corp.’s postpaid offering. Boost currently offers prepaid services using Sprint Nextel’s iDEN network.
The move was not completely unexpected; Sprint Nextel CEO Gary Forsee said during a conference in January that Boost would use CDMA technology to target the sub-prime market with unlimited calling plans.
Boost’s new unlimited plans range from $45 to $55 depending on the market, according to Current Analysis, and could give the carrier a step up against smaller operators. Only one handset, the Motorola Inc. C290 for $100, is available for the service.
The new Unlimited by Boost calling plan is available in Dallas, where Leap Wireless International Inc. does not offer service but MetroPCS Communications Inc. does. The service is also available in some central and eastern Texas and northern and southern California markets where both Leap and MetroPCS offer service. The markets are notable because in January Sprint Nextel’s Forsee said that the carrier likely would offer unlimited service only in areas where Leap and MetroPCS did not already operate.
“Sprint as a whole is taking an offensive posture against these regional upstart carriers after many defensive tries using local postpaid plans. If customers can get beyond only one handset choice, it could bode well for Boost’s future net addition, churn and ARPU prospects,” said analyst William Ho of Current Analysis in a research note.
Boost has seen rapid growth, but Sprint Nextel recently dialed back on its Boost efforts due to capacity constraints on its iDEN network. The introduction of CDMA to Boost is an effort to lighten the load on iDEN, as well as to reduce Boost churn and increase Boost ARPU.