Sprint Goes Low
Sprint saw its overall subscribers decline but got a boost from pay-as-you-go subs on its iDEN network. The operator says customers are choosing to buy into its $50 a month Boost Unlimited offering, which doesn't tie them into a two-year contract, because of the poor economy.
Which raises the question: Should Sprint try to go deeper into this area and possibly take customers from Leap Wireless International Inc. (Nasdaq: LEAP) and MetroPCS Inc. (NYSE: PCS)?
It is always something of a risky strategy: Wall Street prefers monthly subscribers to pay-as-you-go customers; and a carrier generally makes more money off the contract customers.
Still, in a downbeat economy that seems as if it will bump along the bottom for months to come, maybe a little low-cost action isn't the worst approach that Sprint could take right now if it wants to bring its user numbers up.
— Dan Jones, Site Editor, Unstrung