Sprint confirmed its entrance into the device financing space, announcing the launch of its One Up program that allows customers to pay off their mobile device over an installment plan in exchange for a lower monthly bill.
The offering, which was rumored earlier this week, is available beginning today, though not for customers in Florida or Washington, D.C., as of yet. The offering allows customers to pay for an “eligible” smartphone or tablet over a 24-month term, or they can decide trade in that device at the 12-month point for a new device and corresponding new payments. The carrier noted that for a limited time customers could enroll in the program with no money down on the new device.
As part of the package, customers that select the device financing option for one of the carrier’s recently launched My Way or My All-in plans will see their monthly rate plans reduced by $15 per month resulting in unlimited services for $65 per month, which undercuts T-Mobile US’ similar option by $5. Current Sprint customers can also participate in the One Up program, with those currently upgrade eligible to just jump right in, while those with less than one year to go before device upgradeability can trade in their current phone and sign up for the new offering.
The Sprint offering is most similar to the one launched earlier this year by T-Mobile US in that it provides a break on monthly service fees in exchange for a customer selecting to pay the full price for their mobile device. Competing offers launched by Verizon Wireless and AT&T Mobility did not provide for a monthly rate plan discount and instead just allow customers to pay for their device on a monthly installment plan.
The new Sprint offering also shows that the carrier has not yet move away from competing exclusively on pricing, shown by the new offering undercutting the monthly price by T-Mobile US. Sprint had been talking about eventually being able to compete with its larger rivals on network quality instead of strict pricing, but recent quarters have shown the carrier is still struggling to staunch customer defections. Analysts expect Sprint’s woes to continue for at least the rest of this year.
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