& cplSiteName &

Sprint's New Family Plans Double Down on Data

Sarah Thomas
8/18/2014
50%
50%

Sprint introduced new pricing plans on Monday that give customers switching to a family -- not Framily -- plan twice the amount of data AT&T and Verizon offer at a lower price point.

Light Reading broke the news that Sprint Corp. (NYSE: S) would be dropping prices this week after new CEO Marcelo Claure shared his strategy for the company in a "town hall" meeting last Thursday. (See Sprint CEO: Price Cuts First, Best Network Next .)

At the time Claure admitted that Sprint's previously launched "Framily" plans were confusing to customers and that the carrier would have to drop prices to make up for its poor network quality. Today's plans accomplish both goals -- they get rid of the Framily name and drop prices, but with more bang for your buck.

For customers that switch between August 22 and September 30, they will get 20GB of data for up to 10 lines for $100 a month. That applies whether they have four lines or 10, and Sprint is also throwing in an additional 2GB per line for up to 10 lines. After September 30, the price will increase to $160 for four lines. Adding a tablet to the plan is an additional $10 per month or $20 for a mobile broadband device.

Source: Sprint
Source: Sprint

The $160 plan from AT&T Inc. (NYSE: T) and Verizon Wireless only includes 10GB of shared data. T-Mobile US Inc. does offer a $100 plan, but it only includes 10GB of data and limits a family to four lines. (See Sprint, T-Mobile: The Price War's On.)

Under Framily, Sprint offered a $160 monthly plan for 4GB of data. It didn't confirm if it would stop offering Framily all together, but it's simply calling its new plans "Sprint Family Share Pack," and, for a limited time, is offering to buy out switching families' contracts up to $350 if they sign up for Sprint Easy Pay. The company also appears to be kicking off an "It's a new day for data" campaign that could replace its Framily messaging.

Bill Ho, an analyst with 556 Ventures, thinks the new plans are the right move for Sprint on several levels. First, the $100 price point is easy to understand and easy to compare across carriers. Second, it undercuts AT&T and Verizon on price, while beating T-Mobile on data, demonstrating both price and value. And, third, it encourages switchers to sign up for Sprint Easy Pay, its device installment payment program. AT&T's comparable program, Next, has been a big churn reducer for it. Now, the analyst says, it all comes down to execution. (See AT&T's Next to Shorten Wait for Device Upgrades.)

"There is that call to action: 'It goes until the end of September, so get in now, and if you're worried about leaving, we'll pay your switching fee,'" Ho says. "It'll be interesting to see how they market this call to action and how urgently they push it."

Claure seems to get the urgency, at least. In a release on the new plans, the new Sprint boss promised further bold moves to come. Echoing statements he made last week, he said, "We have more news coming later this week about plans for individuals. We want customers to think twice before choosing another wireless carrier."

— Sarah Reedy, Senior Editor, Light Reading

(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
8/20/2014 | 10:05:20 AM
Re: bye bye creepy hamster dad
I agree, commercials are creepy and the creative was a little out there.

The new Sprint plan makes sense in light of T-Mobile's recent move, though the question still remains whether such plans can be offered profitably or not. Of course if there's enough compelling data out there that customers continue to incur overages, these could be quite profitable.

That's what the banking industry found with Totally Free Checking and similar offerings. BY offering low fees and no balance limits, it became much easier for people to bounce checks and incur bounced check fees that provided far more revenue than monthly balance fees.
DanJones
50%
50%
DanJones,
User Rank: Blogger
8/19/2014 | 6:42:15 PM
Re: bye bye creepy hamster dad
They basically just confirmed it as the event in NYC. Innovative but confusing for customers.
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
8/19/2014 | 12:05:14 AM
Re: family time
It isn't called Framily anymore but it's still cornfusing.
DOShea
50%
50%
DOShea,
User Rank: Blogger
8/18/2014 | 9:28:48 PM
Re: bye bye creepy hamster dad
Seems like Sprint is still advertising the Framily plans quite a bit--that hamster is still everywhere. Or should I call him Mr. Frobinson?
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
LRTV Interviews
Colt Sales Exec on Services Trends

7|4|17   |   12:59   |   (0) comments


Colt's sales director for enterprise, James Kershaw, sheds some light on the services currently in demand and how network upgrades are influencing customer demand.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Mobile to Power Online Video Consumption – Zenith
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/19/2017
Can Mushroom Sprout in Crowded SD-WAN Field?
Carol Wilson, Editor-at-large, 7/18/2017
AI Will Be Ubiquitous in 2020 but Overhyped in 2017 – Gartner
Sarah Thomas, Director, Women in Comms, 7/18/2017
Facing the Facebook Video Threat
Gary Miles, Chief Marketing Officer, Amdocs, 7/17/2017
Brocade, Broadcom Merger in Doubt
Iain Morris, News Editor, 7/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Fuzzy Quick Fix Click Here
If you can't access it, is it really broken?
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.