& 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?
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
,
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
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.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Cisco Developing 'Monica' Digital Assistant
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/22/2016
VoLTE Can Drive 4G Small Cells Adoption
Ravi Narayanan, Senior Analyst – Cloud & Next Generation Mobile Networks, Heavy Reading, 8/18/2016
Rocket Fiber Lights Up Detroit With Gigabit
Elizabeth Miller Coyne, Managing Editor, 8/22/2016
'Most Wanted' Kobi Comes Home
Ray Le Maistre, Editor-in-chief, 8/23/2016
Arista Banned From Importing Products – Cisco
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/23/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.