The price war that has begun between T-Mobile USA and Sprint Nextel will ultimately benefit users of Apple’s iPhone 3G if other carriers reduce prices on their data plans, an analyst has said.
Shaw Wu, a Kaufman Bros. analyst, said that Boost Mobile’s $50 per month unlimited voice and data plan and T-Mobile USA’s $50 unlimited voice and $25 per month unlimited data plan will boost sales of smartphones at all the carriers. In addition, he said that the price war will eventually force Verizon Wireless and AT&T Mobility, which is the exclusive U.S. carrier for the iPhone, to drop prices on their unlimited data plans. This, in turn, will increase pressure on the other wireless companies to cut their rates. “Overall,” Wu said, “we view lower service plan prices as positive as it should help smartphone adoption maintain its healthy pace, even in this fragile economy.”
Wu is predicting Apple to sell 3 million iPhones in its fiscal second quarter, which ends in March.
For more:
- see this article
- Video: Boost Mobile UnWronged Ad
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See source article.
The head of Boost Mobile, Sprint Nextel’s prepaid unit, said that Boost’s $50 per month unlimited plan has been doing well since it was introduced nearly a month ago. Matt Carter, the unit’s president, said that the unlimited plan has not resulted in cannibalization of Sprint customers. Instead, he said postpaid subscribers are migrating from T-Mobile USA over to the Boost plan. Article
See source article.
If you’re like me, then more than likely you don’t see a wireless bill that’s under $100 a month. However, Sprint could be changing that with their new $50 per month unlimited wireless calling plan - via Boost Mobile. With competition like this, it could soon force other wireless carriers to begin reducing their rates just to keep customers happy.
Boost Mobile’s decision to launch a $50 per month unlimited voice and data plan on the iDEN network has sparked fears of a coming price war in the U.S. wireless market.
Sprint Nextel’s prepaid unit announced the new rate plan, which will be available Jan. 22 . The plan includes voice service, text messaging, mobile web access and Nextel push-to-talk service. The price point is below Sprint Nextel’s own $99 per month Simply Everything plan as well as the $99 unlimited voice calling plans from Verizon Wireless and AT&T Mobility.
Shares of Leap and MetroPCS, the regional carriers that offer similar plans, fell sharply yesterday on the news. Leap’s Cricket Wireless service offers a $45 per month plan for unlimited voice and text messaging, and MetroPCS offers a $50 per month plan for unlimited calling, texting and web access. However, Boost’s coverage is nationwide and Leap and MetroPCS are regional operators.
The real fear is whether Boost’s new plan will directly compete with national Tier-1 carriers, and force those operators’ flat-rate plans to drop in price.
For more:
- see this FT article
- see this NYT post
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See source article.
If you are paying $100 a month or more to AT&T or Verizon Wireless on your wireless bill, don’t expect your bill to drop in half quickly. But the new $50-a-month unlimited wireless calling plan from Sprint’s Boost Mobile brand may well set off some significant price-cutting by wireless carriers.
AP is reporting that Boost Mobile, an MVNO that utilizes the Sprint Nextel cellular network, has announced a US$50 all-in cellular plan, the lowest price point yet for unlimited voice, text, Web access, and push-to-talk services.
See source article.
Boost Mobile, the MVNO running on Sprint’s smaller Nextel network, is offering the most aggressive national unlimited plan yet—for $50, customers will get an unlimited voice, texting, Web access and push-to-talk services, AP reports.
See source article.
