Sprint (NYSE:S) has announced that it will be cutting the bill half for the sake of its subscribers, directly issuing a challenge to the rivals Verizon (NYSE:VZ) and AT&T (NYSE:T). The plan will have unlimited talk time and unlimited text with the same data plan at half of what you’re paying now. If you’re not happy with the subscription or the plan, Sprint (NYSE:S) will reimburse you with 350 dollars for early termination. Sprint (NYSE:S)’s generosity has stretched to the point that it has even waived the 36 dollar installation fee.
The company’s rival is offering 4 lines plus 10 GB for 140 dollars but the same deal is being offered by Sprint (NYSE:S) at 70 dollars. There is an additional catch to this deal which isn’t easy to pinpoint and usually rides on your back before you know it. There’s no evident discount in terms of device discount. If you have 4 iPhone 6 devices of 16GB units then on the 24 easy pay plan you’ll be looking at an additional bill of 108.36 dollars.
We must mention that Verizon (NYSE:VZ)’s deal doesn’t cover the whole cost of the phone, so the iPhone 6 on a Verizon (NYSE:VZ) plan can cost you about 199.99. So for four phones, the cost can go up to 799.96 dollars which you have to pay upfront. In that case, Sprint (NYSE:S)’s deal is almost immortal when it comes to payment. The reason Sprint (NYSE:S) is offering this sort of bait is because it wants to gain subscribers for its long term contracts.
It’s no secret that Verizon (NYSE:VZ) and AT&T (NYSE:T) are veterans in the market and sooner or later they’ll move in on Sprint (NYSE:S) and even though Sprint (NYSE:S) is ahead in terms of subscribers now, it’s quarter additions are poor as compared to Verizon (NYSE:VZ) and AT&T (NYSE:T). Sprint (NYSE:S) has also challenged, indirectly, these companies by being generous to the customers and offering price cuts. This would put Verizon (NYSE:VZ) and AT&T (NYSE:T)’s market in jeopardy.
T-Mobile has been gunning for Sprint (NYSE:S)’s subscribers since last year. It stated that it will overtake Sprint (NYSE:S) in 2014; that didn’t happen but T-Mobile isn’t far behind. T-Mobile added 2.3 million subscribers in the last quarter whereas Sprint (NYSE:S) added 48,000. On that rationale, T-Mobile is closing in on Sprint (NYSE:S)’s success. What will be interesting to see whether customers are actually attracted to Sprint (NYSE:S)’s deal or not.
There are a lot of intricacies to Sprint (NYSE:S)’s deal and subscribers can be looking at additional pays, which they didn’t plan for initially. The competition between Verizon (NYSE:VZ), AT&T (NYSE:T), T-Mobile and Sprint (NYSE:S) will get even stronger now. Sprint (NYSE:S) has played a card which can be deadly for its rivals but can be self-harming too. If subscribers don’t get attracted, that would mean Sprint (NYSE:S) will have to make up for the revenue. Also, Sprint (NYSE:S) will now be on the radar of other companies.