Tech Analyst Jeff Kagan on Sprint Softbank Cutting Unlimited Plan Costs
Atlanta, GA (PRWEB) July 12, 2013 -- Now that Sprint and Softbank have merged, we wait for the next step to see what changes will occur. The first is good news for Sprint Unlimited plan customers. They get a price cut, according to the Associated Press on July 11 in the USA Today web site.
Wireless analyst Jeff Kagan offers comment on this story.
“This is a good first step for the new company. Sprint has been through the ringer in the last few years, but now that they have merged with Softbank, it looks like they may have another chance for a future of growth and success. The path may be very different however. We have been waiting to see what the first moves would be from this new company, and the answer is in. They are reducing the price of their Unlimited Plan. Good start," says Industry analyst Jeff Kagan.
Sprint Unlmited Guarantee offers unlimited data for $30 monthly when customers use a smartphone. Voice and text cost $50 for the first line and less for added lines.
“There was a question whether Sprint would move away from unlimited plans and follow the more successful AT&T Mobility and Verizon Wireless. This move seems to say they are sticking with the unlimited approach," says Principal analyst Jeff Kagan
Dan Hesse, Sprint CEO says there has been a lot of chatter about when the company would “follow the crowd” and stop offering unlimited plans the way AT&T and Verizon have. He said the guarantee is a way of telling customers that we are not going to pull the rug out from under you. He also said Sprint is distinctly different in market position from AT&T and Verizon.
“This is a good start for the new Sprint, however they have quite a bit of work ahead of them. They need to rapidly invest in and update their network to offer more 4G in more places to better compete with AT&T and Verizon. Once they do that, the next question is how will this new Sprint Softbank change the rules the wireless industry plays by?” Asks Kagan.
“I expect a three pronged strategy from Sprint Softbank. One is to update the network and bring 4G to more places as quickly as possible. Two, I see Sprint introducing new ideas to the marketing mix that will help them compete better against the AT&T and Verizon’s of the marketplace. And three, if these ideas are successful, I see Sprint trying to change the economics of the entire industry. They want to change the way we think about wireless, what we get and how we pay," says Kagan.
“These are big steps, and they will take time, but this ambitious approach will keep them in the headlines, which can be a very good thing. However, Sprint will have to get better on public relations, marketing and advertising. I think the new Sprint Softbank knows this since wireless is a cut-throat business and they must get their message out," says Kagan.
“So, congratulations to Sprint and Softbank on this deal and good luck with their plans for the future of their new company. The industry needs a strong third place player and we all want them to be successful. Their future is in their hands," says Kagan.
About Jeff Kagan
Jeff Kagan is a Technology Industry Analyst and consultant who is regularly quoted by the media over 25 years. He offers comment on wireless, telecom and tech news stories to reporters and journalists.
He is also known as a Tech Analyst, Wireless Analyst, Telecom Analyst and Principal Analyst depending on the focus of the story.
He follows wireless, telecom, Internet, cable television and IPTV. He also follows the wide consumer electronics and technology space.
Reporters: Jeff Kagan sends comments by email to reporters and the media. If you would like to be added to this email list please send request by email.
Clients: Call or email Jeff Kagan to discuss becoming a client. Kagan has worked with many companies over 25 years as consulting clients.
Contact: Jeff Kagan by email at jeff[at]jeffKAGAN[odt]com or by phone at 770-579-5810.
Visit his website: at jeffKAGAN.com to learn more and for disclosures.
Kagan is an analyst, consultant, columnist and speaker.
Twitter: @jeffkagan
Jeff Kagan, Tech Analyst, Industry Analyst, Jeff Kagan, Tech Anaylyst, http://www.jeffKAGAN.com, 770-579-5810, [email protected]
Share this article