UPDATED: ORLANDO, Fla. – Few would argue the allure of a mobile device for consumers when they are selecting which wireless carrier they are looking to join. Sure, carriers like to tout the strength and reach of their network in advertisements, but at the end of the day many consumers still make their carrier decisions based on which devices they can get their hands on.
Looking to tap into that model, Leap Wireless International Inc.’s (LEAP) Cricket subsidiary is set to expand its smartphone line up that will also include a dual-core processor device set to launch later this year. The carrier, which only got into the smartphone game late last year, is now home to several of the in-demand devices.
Cricket currently offers three smartphones, including a pair of Android-powered devices and a Research In Motion Ltd. BlackBerry, with plans to add more Android to the mix.
Cricket’s initial foray into the smartphone space included the Kyocera Wireless Corp./Sanyo Zio and RIM BlackBerry Curve that both ran $250. Those were followed quickly by the Huawei Technologies Co. Ltd. Ascend that was available for $150.
Looking to continue building on that move, the carrier’s next phase of smartphone launches began with the recently unveiled LG Electronics Co. Ltd. Optimus C at the $200 price point, which the carrier said is a level it tries to maintain for broad adoption.
“Keeping those mass-market smartphones at $200 is the goal,” said Matt Stoiber, VP and GM of device development at Cricket.
Over the next three months, Cricket has a pair of new devices on deck, including the Samsung Electronics Co. Ltd. Indulge with a slide out QWERTY keyboard and a refresh of the Ascend, creatively named the Ascend 2.
Stoiber also said the carrier is looking to add a couple of devices into what it terms the “best” category, which would slot in higher than what the carrier is currently offering. That will include a dual-core phone running a 1.4 GHz processor and a 4-inch screen that it expects to launch during the second half of the year.
Stoiber added that the carrier will also continue to refresh its entry-level device line up for those customers looking to do more talking and texting than data downloading. Those will include so-called “candybar” devices as well as flip phones.
Perhaps the biggest challenge for Cricket in adding more smartphones is the pricing model. In the postpaid space, consumers are used to being able to grab the top-of-the-line smartphones for $200 or less. However, when it comes to the prepaid model that Cricket operates under, that is more of a challenge.
Stoiber explained that while handset pricing is of course very critical for its customer base, they are also interested in getting the latest devices and realize that there is a bit of a trade off when going with a no-contract offering.
While Cricket is typically required to provide a higher subsidy for its smartphones compared with its lower-end devices, customer picking up the smartphones must also select a slightly more expensive rate plan. The carrier’s regular plans are priced at $35 and $45 per month depending on the number of features selected, with smartphone pricing set at $55 per month for Android and BlackBerry devices.
In addition to the higher priced plans, Cricket notes that customers selecting smartphones are less likely to churn, which has always been a bugaboo for no-contract services. Cricket recently noted that customer churn during the fourth quarter dropped from 4.7% in 2009 to 4% last year.
This story was updated to reflect a change in pricing for Cricket’s BlackBerry rate plan.
