Fresh off the heels of its acquisition by Softbank and acquisition of Clearwire, Sprint unveiled new rate plans looking to tap into the unlimited everything model embraced by carriers looking to gain a competitive advantage.
The new plans, dubbed My Way and My All-in, include unlimited voice calling, messaging and data services while on the carrier’s native network beginning at $80 per month. Customers can also add up to 10 lines to an account at increasingly lower rates per line.
Specifically, the My Way plan begins with unlimited voice calling and messaging for a single line at $50 per month. Customers can then add unlimited data for a smartphone for $30 per month or 1 gigabyte of data for a smartphone at $20 per month. For customers on “basic” phones, the data charge is $10 per month for unlimited usage or they can forgo data services all together. The second line of service with unlimited voice and messaging runs $40, with the same data options; while the third line is $30 per month; and all additional lines up to a total of 10 lines run $20 per line. Customers on the My Way plan can also add 1 GB of “hotspot” functionality to their smartphones for an additional $10 per month.
The My All-in plan is targeted more at single-line users, with customers having access to unlimited voice calling, messaging data and 5 GB of hotspot usage for $110 per month.
The new plans look to usurp the carrier’s current “Everything” plans that for single lines provide unlimited voice, messaging and data for the same $110 per month as the My All-in plan, though there is an additional $20 per month charge for 2 GB of hotspot usage or $50 per month for 6 GB. The bigger savings comes with family plans, which previously charged $210 per month for the first two lines of unlimited voice, messaging and data, with up to three lines being added at $100 per month for smartphones. That results in a savings of $200 per month for five lines of service using smartphones.
The increased savings for multi-lines makes sense as those plans tend to tie customers to a carrier over a longer period of time as it becomes more difficult to move multi-lines to a new carrier thus reducing churn.
Further enticing consumers, the new plans also come with the carrier’s “The Sprint Unlimited Guarantee,” guaranteeing customers unlimited voice calling, messaging and data services for the life of a line of service. The “guarantee” is applicable to both existing and new customers that sign up for the My Way and My All-in plans. Carriers have traditionally allowed customers to keep services for as long as they keep a line of service, though Verizon Wireless and AT&T Mobility have somewhat altered this practice by requiring customers to select capped data packages if they choose to take advantage of device subsidies.
Sprint claims the new plans will provide a significant savings compared with rivals, though the apples-to-apples comparison with T-Mobile US is not quite as clear-cut. Sprint notes its My Way plan will save $10 per month compared with T-Mobile US’ Simple Choice plan with unlimited data, though for that additional $10 T-Mobile US does through in unlimited hotspot usage and that price does include the $20 per month for the EIP on all high-end devices. That amount is eventually wiped from the bill at the end of the two-year payment cycle.
Another caveat is that the new rate plans require a two-year contract per line, though existing customers can switch to the new plans without extending their current contracts. T-Mobile US has done away with contracts tied to their rate plans and instead ties a contact to subsidized devices through its Equipment Installment Program.
T-Mobile US this week added fuel to the competitive fire announcing a new device upgrade program, dubbed “Jump,” that allows customers to pay an extra $10 per month for the ability to upgrade to a new device up to twice per year. The first upgrade has to be after six months of enrollment in the program and requires that customers trade in their old device in “good working condition.” Customers will then be able to select a new device through the carrier’s EIP at the non-subsidized price T-Mobile US offers to new customers, with the remaining balance on the old device is eliminated. The Jump offering is set to launch July 14.
T-Mobile US also announced the availability of a family plan that allows for up to four lines of its unlimited talk, messaging and data services, with 500 megabytes of data at HSPA+ or LTE speeds, for $100 per month. Like its traditional Simple Choice Plan, the family offering does not require a contract or credit check.
LTE expansion
Sprint also noted that its LTE network was now available in 110 markets, with plans to cover 150 million potential customers by year end. T-Mobile US this week noted that its LTE network, which launched nearly a year after Sprint began its LTE rollout, was now available in 116 markets covering 157 million pops, with plans for 200 million pops covered by the end of the year.
Both networks are still considerably behind LTE offerings from Verizon Wireless and AT&T Mobility, with Verizon Wireless’ LTE network now covering 298 million pops, while AT&T Mobility just recently surpassed the 200 million pops mark.
However, analysts have noted that Sprint and T-Mobile US are pushing aggressively to roll out services in more populated urban areas, whereas larger rivals are now looking at expanding coverage into more rural locations. This does provide an advantage in marketing where the larger numbers play well in advertisements, though Sprint and T-Mobile US can at least claim coverage in the nation’s larger markets.
That coverage advantage is expected to continue for some time as both Verizon Wireless and AT&T Mobility are able to dip into their 700 MHz spectrum holdings to bolster LTE coverage, while Sprint and T-Mobile US are relegated to using their higher frequency bands in the near term for LTE services. Sprint Nextel is currently using its 1.9 GHz spectrum for LTE services, though it plans to also begin using its 800 MHz band freed up from the recent shuttering of its legacy iDEN network to add greater scope. T-Mobile US’ current spectrum portfolio is filled with licenses in the 1.7/2.1 GHz band, to be used for LTE services, and the 1.9 GHz band to be used for HSPA-based services.
T-Mobile US CTO Neville Ray noted recently that while the larger players are able to provide coverage to the last 50 million to 60 million pops easier and less expensively due to their lower-band spectrum holdings, the planned auction of 600 MHz spectrum through the incentive auction process could level the playing field.
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