Light Reading

Sprint Plans More Bundled-Content Offers

Sarah Thomas
5/19/2014
50%
50%

After some very early success with its partnership with Spotify, Sprint is planning to offer additional bundled content add-ons to eke more value out of its installment billing and "Framily" plans.

Speaking Monday morning at the JP.MorganChase Global Technology, Media and Telecom Conference, Sprint Corp. (NYSE: S) CFO Joe Euteneuer told attendees that he wants to bring more types of content to the forefront for Sprint customers and offer them as add-ons to their data plans.

The offers would look similar to the deal Sprint struck with Spotify last month that Euteneuer said has done really well in its first two weeks. Sprint helps market and promote Spotify and offers the music service free to those customers on a Framily plan for up to six months, followed by a discounted rate of $7.99 per month after that if the Framily has less than five people in it and $4.99 if it has six to 10 members. Euteneuer said this type of flexibility in billing "establishes the foundation of where we're going to go forward." (See Sprint Launches No-Sharing 'Framily' Plans.)

The carrier also offers installment billing, which has caused its service ARPU to go down, but device revenue to grow. The CFO suggested bundled deals like the Spotify offer will help it make up some of the service revenue its losing from installment billing, which 29% of its customer base now uses. (See Sprint Reports Q1 Loss of $151M.)

"The most important piece of installment billing is, one, customers are now paying for their phones 100% over 24 months, and we have eliminated the subsidy, which has a big help to the bottom line," Euteneuer said, adding that Sprint will "then continue to create value through other Spotify type offers."

Future content deals will likely branch out from music, but interest in mobile music has been growing lately, making it a good place to start. Apple Inc. (Nasdaq: AAPL) is reportedly acquiring Beats, which is a partner to AT&T Inc. (NYSE: T). Analysts believe the deal could spur more M&A and action in the mobile music space. (See Apple Buying Beats for $3.2B: Dr. Dre & Tyrese.)

— Sarah Reedy, Senior Editor, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
danielcawrey
50%
50%
danielcawrey,
User Rank: Light Sabre
5/19/2014 | 5:04:37 PM
Re: toll-free too?
I have never thought that Spotify would be able to support itself through advertising alone. Tying the service with devices on the go is a great idea: It's like an iPod (remember those?) with every song you could ever want. 

I'm positive that the Apple-Beats deal will leverage the AT&T partnership. After all, isn't AT&T where the iPhone made its initial debut?

 
kq4ym
50%
50%
kq4ym,
User Rank: Light Sabre
5/19/2014 | 4:52:44 PM
Re: toll-free too?
Sprint seems always ready to spice up their offerings and the bundled content is most likely a growing trend. It's a great way to cross-promote other services while enticing customer who think they're getting something free, but of course it's added revenue eventually to the providers.
Flash Poll
From The Founder
Network architects aiming to upgrade their networks to support agile, open, virtualized services in the 21st century need to consider new criteria when choosing between technology suppliers.
Live Streaming Video
BTE 2015 Sponsor Keynote: HP
Dr. Prodip Sen, CTO, Network Functions Virtualization, HP
LRTV Documentaries
IoT in Action

6|30|15   |   1:39   |   (5) comments


Two co-workers discuss the benefits of IoT technology.
LRTV Interviews
Ericsson Opens Up on OPNFV

6|30|15   |   14:16   |   (0) comments


Martin Bäckström, VP and head of industry area Datacom at Ericsson, talks to Light Reading founder and CEO Steve Saunders about the emergence of OPNFV, the importance of standards and Ericsson's OPNFV plans.
LRTV Custom TV
NetNumber Founder Discusses NFV/SDN Impact on SP Networks

6|26|15   |   4:15   |   (0) comments


NetNumber Founder Doug Ranalli examines why SPs need a new network infrastructure for service agility. While NFV and SDN are the tools, the old ways of thinking about signaling control are inhibitors. Doug provides his recommendations.
LRTV Custom TV
Orchestrating NFV vCPE Services Across Multivendor Networks

6|26|15   |   5:46   |   (0) comments


Nirav Modi provides an overview of vCPE, the fastest-growing NFV use case, showing how Cyan's Blue Planet orchestrates vCPE services across a multivendor infrastructure to rapidly deliver new managed services for business customers.
LRTV Custom TV
ZTE at LTE Summit Amsterdam 2015

6|26|15   |     |   (0) comments


As one of the leading global telecommunications providers, ZTE presented its cutting-edge technology at LTE World Summit 2015 in Amsterdam. On display at ZTE's booth were the latest R&D achievements in wireless, 5G development, HetNet, deep convergence of FDD and TDD, and RCS/IMD/iSDN/vCN.
LRTV Documentaries
OPNFV Director Opens Up on Women in Tech

6|25|15   |   3:25   |   (0) comments


Heather Kirksey, the director of the OPNFV, gets real about the gender disparity in open source and standards and discusses how we can change both the conversation and the gender dynamics.
LRTV Custom TV
Symantec's Service Provider Security Strategy

6|24|15   |   7:06   |   (0) comments


Didi Dayton explores Symantec's emerging enterprise security strategies for service providers. Highlights include 'killing the password,' self-defense, advanced analytics and adaptive response in a service provider architecture.
Between the CEOs
Debating Network Evolution With Cisco's Cedrik Neike

6|23|15   |   12:54   |   (2) comments


Cedrik Neike, SVP of Global Service Provider, Service Delivery, at Cisco, talks to Light Reading founder and CEO Steve Saunders about solving service provider customer problems in a virtualized, DevOps world, including multivendor support and the future of network procurement.
LRTV Documentaries
Vodafone: What's Good for Moms Is Good for Business

6|23|15   |   3:04   |   (3) comments


Megan Doberneck, the general counsel for Vodafone Americas, discusses her company's progressive maternity policy, explains why promoting women in tech is good business and offers some some good advice for any women in the industry.
LRTV Interviews
NFV: Ready for Prime Time

6|23|15   |   05:09   |   (1) comment


At BTE 2015, Vip mobile CTO Dejan Kastelic talks about how NFV is ready for the real world and how Telekom Austria is introducing centralized resources for its group operations.
LRTV Documentaries
Tykes Talk Tech

6|22|15   |   02:30   |   (9) comments


What does optical fiber look like? When will 5G arrive? What's the WiFi password at Ikea? Light Reading sat down with three 8-year-olds to answer some of the communications industry's most burning questions...
LRTV Huawei Video Resource Center
Huawei Partners With TDC for World's First Early DOCSIS 3.1 Field Test

6|22|15   |   3:06   |   (0) comments


In a move to enhance user experience, Denmark's TDC aims to become an early adopter of DOCSIS 3.1. In partnership with Huawei, TDC recently ran the world's first field tests on its coax network that reached speeds nearing 1 Gbit/s.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
All Upcoming Live Events
Infographics
Hot Topics
Staying Productive With My Office-in-a-Bag
Mitch Wagner, West Coast Bureau Chief, Light Reading, 6/25/2015
Who's Feeding Fiber to LinkNYC Hotspots?
Mari Silbey, Senior Editor, Cable/Video, 6/29/2015
Eurobites: Activist Investor Takes Stake in AlcaLu
Paul Rainford, Assistant Editor, Europe, 6/30/2015
What's in Your Office-in-a-Bag?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 6/26/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Casa Systems has been going from strength to strength over the last couple of years. In 2013, it became the first vendor to ship an integrated CCAP device -- the ...
Cedrik Neike, SVP of Global Service Provider, Service Delivery, at Cisco, talks to Light Reading founder and CEO Steve Saunders about solving service provider customer problems in a virtualized, DevOps world, including multivendor support and the future of network procurement.
Cats with Phones