Light Reading

Sprint Launches No-Sharing 'Framily' Plans

Sarah Thomas
1/7/2014
50%
50%

Its bigger rivals have introduced family data-sharing plans, but Sprint is taking a unique approach -- offering "Framily" plans where members don't have to share data or, for that matter, anything else.

Sprint Corp. (NYSE: S) CEO Dan Hesse talked up the new plans at the Citi conference in Las Vegas on Tuesday. He cited US Census statistics that show 60% of American households now have one or two people. The new plans cater to these non-nuclear families by letting a Sprint customer share an account ID with up to 10 friends, family members, co-workers, neighborhood mooches, or whomever.

That person pays $55 for unlimited talk, text, and 1 GB of data. Each person added to the plan reduces the cost by $5 to as low as $30 per month. Any user can pay $10 extra for 3 GB of data or $20 more for unlimited, uncapped data. Each participant also gets an individual bill and doesn't have to share data with the other plan members.

Hesse said he thinks the plans will reduce churn for Sprint by committing so many people to a plan, even if they end up reducing average revenue per user. The postpaid plans also require Sprint customers to pay up front for their mobile device or in 24 monthly payments, so they could reduce subsidy fees.

He also reiterated his sort-of commitment to unlimited service. He said he expects it to be around for a long time -- at least as an option -- at the carrier. He didn't promise it wouldn't come at a cost, but he still sees a significant portion of Sprint's customer base wanting to pay a premium for that peace of mind. A home run for Sprint would be if everyone on the Framily plans paid the $20 extra for unlimited data.

"Our overall economics are better served by people who use more and are willing to pay more for unlimited usage," Hesse said.

Also Tuesday, Sprint announced Fort Lauderdale, Fla., and five Texas cities -- Austin, Dallas, Fort Worth, Houston, and San Antonio -- as tri-mode Spark markets. The curved LG Electronics Inc. (London: LGLD; Korea: 6657.KS) G Flex smartphone, unveiled at CES, will be the latest Spark-compatible smartphone. (See: Sprint Sparks It in Chicago and Sprint Sparks Up Vendors for Faster 4G LTE.)

— Sarah Reedy, Senior Editor, Light Reading

(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/13/2014 | 10:37:32 AM
Framily plans one up One Up?
Looks like Sprint is abandoning its short-lived One Up early upgrade plans in favor of the Framily plans, which is weird because Hesse talked up how well they were doing at the Citi conference. Plus, I thought they were linked to the Framily plans, ie you have to pay up front or be a One Up subscriber to take advantage of Framily?

 http://news.cnet.com/8301-1035_3-57617119-94/sprint-kills-one-up-in-favor-of-framily-plan/
Kruz
50%
50%
Kruz,
User Rank: Light Sabre
1/9/2014 | 7:02:45 AM
Re: Mooches
It is already hard agreeing on a package with another "friend". 7 will be just too much to follow-up on...
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/8/2014 | 11:47:19 AM
Re: Mooches
He said neighbors, but -- seeing as I'm not close with any of my neighbors -- I figured they'd have to be real moochy to try to get on my plan. No one has ever even tried to borrow sugar.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/8/2014 | 11:44:53 AM
Re: Good deal
That's true, and it comes down to the original guy to keep all his other people on the plan. First he has to find 7 people in 14 days (for max discount) then convince them to stay on. It could be a lot of work. I'd just want to be one of the people that latches on late.
DOShea
50%
50%
DOShea,
User Rank: Blogger
1/7/2014 | 8:50:10 PM
Mooches
Did Hesse actually suggest neighborhood mooches as possible "framily" plan members? I want to believe he did.
R Clark
50%
50%
R Clark,
User Rank: Blogger
1/7/2014 | 6:57:27 PM
Re: Good deal
Sounds like a good way of adding subs, although the problem with chasing price-sensitive customers is they're easily lured away at the end of the contract.

In HK, I just upgraded to 4G for an extra $10 a month and the operator threw in a free extra 4G SIM card.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
1/7/2014 | 5:39:15 PM
Good deal
I think this is a good model for Sprint. Creates sticky customers because the more they have on the plan, the lower the cost, plus no fighting over the data, which could be ackward if you don't know these people well.

There is a catch -- you have to pay up front for the phone or pay in installments, but the plans are cheap enough to offset that initial pain.

What do you think? Would you be able to get 7 people on board for a plan like this? Sprint says you have two weeks to do so after signing up before your plan is locked in.
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
LRTV Huawei Video Resource Center
Thailand's AIS: Transforming to an FMC Operator

7|17|15   |   4:53   |   (0) comments


Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
Hot Topics
Robbins Succeeds Chambers as Cisco Changes CEOs
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
Cable Feuds With Senate Dems Over STBs
Alan Breznick, Cable/Video Practice Leader, 7/31/2015
RJio to Launch Its Own 4G Devices Brand
Gagandeep Kaur, Contributing Editor, 7/27/2015
Easing the Tech Pains for the Homeless
Carol Wilson, Editor-at-large, 7/28/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
Cats with Phones
Comes With Free Phone Stand Click Here
Who says cats don't have any skills?