Analysts: Sprint's $60 Plan Will Not Affect Verizon or AT&T - Possibly T-Mobile

I suppose all analysts have to do is sit around and analyze all day - and these days it seems that every one of them has an opinion on Sprint.  When razzle-dazzle Softbank purchased Sprint a year ago, we really thought there would be some big changes; however, it seemed to be business as usual.  Dan Hesse, while a nice spokesperson for the company, just did not have the dynamic personality that was needed to stir things up and get the job done.  A month ago, he quietly, and with his usual gentlemanly manner, handed the reins of Sprint over to the anti-Hesse - Marcelo Claure, a dynamic go getter and exactly what Softbank and Sprint need...but is it too late? Sprint's problems go beyond leadership - they need a great network and they needed it yesterday.  Their new $60 unlimited plan, including data, will only go so far - lowering the price is great, but if you are still buying $60 worth of crap, who will jump from their current network to Sprint?  According to the latest analysts, the $60 unlimited plan may put some pressure on T-Mobile, but unlikely to hurt Verizon Wireless or AT&T Mobility.

Jefferies analysts Mike McCormack, Scott Goldman and Tudor Mustata questioned the plan's effectiveness - "We see the new $60 unlimited plan as competitive to T-Mobile's $80 single line offer, but question the magnitude of competitive pressure it will create given network quality issues and the inability to be bundled within a family plan."  Sprint has made it quite clear that family plans are the most important thing for them to address, given that most households will buy a family plan, not an individual plan like their $60 unlimited.  Jefferies analysts wrote: "Absent a bundling discount within a family plan, Sprint's pricing advantage narrows with the number of unlimited plan subscribers: Sprint is cheaper for up to two lines, while T-Mobile is equivalent or cheaper for higher-end plans." Analysts say that while neither AT&T nor Verizon offer any unlimited data plans, either on a single line or on a shared plan, that they not offered one for quite some time - proving that their customers truly value their large and reliable networks.  In addition, the customers that want simply unrestricted access to data have probably already migrated to T-Mobile or Sprint.  They believe the people that Sprint may attract are some prepaid customers from Verizon or AT&T, however, neither carrier is likely change their current pricing structure.  They are more than happy to let the high usage, less economical customers to go to the smaller carriers.

T-Mobile and Sprint will battle it out to try and up one another - Sprint announced a limited time offer for families of up to ten lines with 20GB of shared data for $100 a month, plus an extra 2GB per line for up to ten lines.  T-Mobile said this week if you bring a new customer to sign up for a Simple Choice plan they will give you unlimited LTE for a year and those already in a Simple Choice plan that already have unlimited data will get a $10 a month credit for a year. Whatever happens, Sprint will need to improve its network if they want people to stay.  Sprint expects its Spark service and its 2.5GHz TD-LTE service will cover 100 million POPs by year-end.  This will certainly help if they can make it happen - it will be a matter of regaining the public's trust...not always an easy thing to do.  Please hit us up on our Google+ Page and let us know where you stand with Sprint - a current customer, thinking of leaving, thinking of going to Sprint, or would never touch always, we would love to hear from you.

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About the Author

Cory McNutt

Senior Staff Writer
Cory has written for Androidheadlines since 2013 and is a Senior Writer for the site. Cory has a background in Accounting and Finance and worked for the FBI in the past. From there he pursued his Masters in English Literature. Cory loves Android and Google related technology and specializes in Smartphone Comparisons on our site. Contact him at [email protected]
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