Sprint is making a big push for the prepaid wireless market and the third-largest U.S. carrier will be shifting its no-contract offerings into four separate units that go after different segments of the market.
“This is the year that prepaid moves to the forefront of the wireless industry,” said Dan Schulman, president of Sprint’s prepaid group, in a prepaid statement. “In the first quarter of 2010, more than half of the mobile gross additions in the U.S. selected prepaid, and we predect that approximately 70% of the net adds in 2010 will choose plans without a contract.”
As expected, Virgin Mobile will be the high-end prepaid carrier for users who want data features. The company introduced three “Beyond Talk” plans that include unlimited text, e-mail and data. The lowest package starts at $25 a month for 300 minutes and ranges to $60 for unlimited everything. Virgin Mobile will also be getting three new handsets that we’ve already spotted: The BlackBerry Curve 8530, LG Rumor Touch and the Kyocera Loft.
Boost Mobile will be aimed at those who primarily talk and text and it still offers an unlimited plan for $50 a month. Sprint’s Assurance Wireless is a free service that has been developed for the 37 million eligible low-income households and those who quality can get a free phone with 200 minutes of airtime per month. The carrier also introduced the Common Cents Mobile plans, which enables users to pay $.07 per minute or $.07 per text.
It’s an interesting strategy by Sprint, as I do think the prepaid market is going to experience rapid growth in the United States. But this strategy also has the potential to solidify Sprint as a second-tier carrier because the revenues from this market aren’t as big as those on long-term contracts. Plus, the CDMA nature of Sprint’s services mean its customers won’t have flexibility to take their devices to other carriers. Finally, we’re seeing a bigger push toward smartphones in the mainstream and customers have shown a willingness to pay a little more per month (and have a contract) in order to get a device like the iPhone or the Droid Incredible.
[Via Sprint]