& 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
The more things change, the more they stay the same for Juniper's next-gen comms solutions, and that's a good thing.
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
ZTE Pre5G & 5G Solutions

6|30|16   |   02:23   |   (0) comments


At 5G World London, ZTE demonstrated two types of equipment, including 128 antenna Pre5G Massive MIMO and 15GHz high-frequency base stations.
LRTV Custom TV
Energy 2020: Technology Innovation to Fuel Power Efficiency

6|30|16   |   07:21   |   (0) comments


Managing energy costs and consumption as cable operators deploy new services requires new levels of innovation from technology partners. In this video, Dave Fellows, co-founder and CTO of Layer3 TV and chief scientist of the SCTE/ISBE Energy 2020 program, discusses such ambitious objectives as achieving a second 500% increase in efficiency in outside plant ...
LRTV Custom TV
Transitioning to Service Agile Networks

6|30|16   |     |   (0) comments


Packet optical networks are transitioning from proprietary converged systems to open disaggregated platforms. This video will describe the Fujitsu 1FINITY disaggregated platform, explore how 1FINITY interoperates with the Fujitsu FLASHWAVE platform and explain how 1FINITY is designed for software control, like with Fujitsu Virtuora NC.
Women in Comms Introduction Videos
Nokia's Advancement Plan: Bring Old Skills to New Roles

6|29|16   |   7:57   |   (1) comment


Nokia's Sandy Motley advises women to change their mindsets; get aggressive about advancing their careers; develop strong, diverse support networks; and always bring forth learned skills to take on new challenges and different roles.
Between the CEOs
CEO Chat: Cisco's Yvette Kanouff

6|28|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Cisco's Yvette Kanouff for an exclusive in-depth interview.
LRTV Interviews
Comcast: Prepping Next-Gen Video Services

6|28|16   |     |   (0) comments


In this LRTV interview, Comcast's Elad Nafshi outlines where MSO stands with cloud DVR, OTT video, college and gigabit services.
LRTV Custom TV
Energy 2020: Creating Unique Standards for Cable's Unique Networks

6|28|16   |   09:30   |   (0) comments


Cable's unique network requirements require a specific set of standards for operators to increase power efficiency, according to Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee, and Ian Oliver, managing director of the Trenchant Group and a member of the ...
LRTV Custom TV
Masergy: 'Now Is the Time for NFV'

6|28|16   |     |   (0) comments


Hear Ray Watson, VP of Global Technology at Masergy, talk about the advantages that enterprises can leverage using Network Function Virtualization (NFV), and how Masergy takes a unique approach to solving customers' problems. For more information on Masergy, please visit www.masergy.com.
LRTV Custom TV
Masergy Leads the Charge With NFV Capabilities

6|28|16   |     |   (0) comments


Hear Tim Naramore, CTO at Masergy, talk about how focusing on solving specific customer challenges, providing self-service automation tools and being laser focused on the customer experience has enabled Masergy to be a leader in the NFV space. For more information on Masergy, please visit www.masergy.com.
LRTV Custom TV
Private Company of the Year - Affirmed Networks

6|27|16   |     |   (0) comments


At BCE 2016, Steve Saunders speaks to Hassan Ahmed about Affirmed's success.
LRTV Custom TV
Energy 2020: Growing Services, Not Consumption

6|24|16   |   07:18   |   (0) comments


Management of power requirements needs to be a key consideration as cable operators deploy new services, says Dan Cooper, vice president of critical infrastructure for Charter Communications and chair of the SCTE/ISBE Standards Program's Energy Management Subcommittee. In this video, Cooper discusses the importance of cable operators and technology partners ...
LRTV Huawei Video Resource Center
Huawei & TDC First to Launch DOCSIS 3.1 Trial in Europe

6|24|16   |     |   (0) comments


To meet the rising demands for high-speed broadband and to tackle fierce competition for 1.5 million household, TDC wanted to upgrade its network to use the latest technology. Using Huawei's DOCSIS 3.1 solution, TDC is now able to offer gigabit speeds to its customers.
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 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
'Brexit' Vote Hits BT, Vodafone
Iain Morris, News Editor, 6/24/2016
Brexit: It's Hard to See an Upside
Ray Le Maistre, Editor-in-chief, 6/29/2016
Qualcomm Readies Lower-Band 5G Testbed
Dan Jones, Mobile Editor, 6/27/2016
Sigfox Said to Face Customer Backlash
Iain Morris, News Editor, 6/27/2016
DT Eyes FTTH Solution to German Opex Issue
Iain Morris, News Editor, 6/29/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In Silicon Valley, Steve Saunders sits down with Cisco's Yvette Kanouff for an exclusive in-depth interview.
At the BCE 2016 show in Austin, ECI Telecom CEO Darryl Edwards tells Light Reading founder and CEO about the Elastic Network concept and the company's NFV and cybersecurity developments.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.