Sprint, T-Mobile in Price Brawl for Cellular Customers

Thursday, 21 Aug 2014 02:34 PM


  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
T-Mobile US Inc. and Sprint Corp. are embarking on a price brawl to take each others’ subscribers after a deal to merge the wireless carriers collapsed.

T-Mobile is enlisting its own customers to recruit new users. Starting next week, T-Mobile’s refer-a-friend campaign will reward its own subscribers and the friends recruited from other carriers with one year of unlimited data, according to a statement Thursday. Not to be outdone, Sprint fired back, offering unlimited data, calling and messaging for $60 a month, undercutting a similar package at T-Mobile by $20.

T-Mobile’s offer — introduced with a statement entitled “T-Mobile Urges Its Customers to Rescue Beleaguered Sprint Customers” — is aimed primarily at Sprint and also applies to customers recruited from Verizon Communications Inc. and AT&T Inc. After Sprint abandoned a plan to merge with T-Mobile, Sprint’s new Chief Executive Officer Marcelo Claure has introduced price reductions at a company that had largely sought to stay above the fray of price cuts that have been led by T- Mobile.

“It continues to amaze me to see the old carriers failing to listen to their customers, or reward them for their loyalty,” T-Mobile CEO John Legere said in the announcement. “That arrogance and indifference has defined the U.S. wireless industry for too long. We’re changing that.”

With the new offer T-Mobile, based in Bellevue, Washington, will also give its customers a $25 bonus to spend at T-Mobile for each referral, according to the company’s website.

‘No Gimmicks’

Sprint’s $60 unlimited individual offer begins tomorrow. The company dropped its Framily plan this week because it didn’t compare directly with rival prices, Jeff Hallock, Sprint’s chief marketing officer, said in an interview Thursday.

“This is a simple, straight-forward, affordable plan,” Hallock said. “There’s no gimmicks to this, it’s not a promotion, there are no hoops to jump through like T-Mobile’s where you have to figure out how to refer others.”

Still, Overland Park, Kansas-based Sprint is playing catchup on network upgrades, and was rated worst of the four top carriers this week by RootMetrics. It has also lost monthly subscribers for seven straight years.

While Legere recently predicted that T-Mobile will overtake Sprint in total customers by the end of the year, Hallock declined to say when he thinks the company’s subscriber losses would end.

“We are making all the right changes and more will come,” he said. “This is the first step to get us on the trajectory back to positive subscriber growth.”

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Investors Sour on Dollar After Strong Rally

Friday, 24 Oct 2014 14:32 PM

My how things can change.
Just three weeks ago the dollar hit a six-year high against the yen and a two-year high  . . .

Jeremy Siegel: My Dow 18K Forecast Has Only 50 Percent Chance Now

Friday, 24 Oct 2014 14:13 PM

Stock market guru Jeremy Siegel, finance professor at University of Pennsylvania, has been saying all year that the Dow  . . .

Manhattan Institute's Mills: Oil's Plunge Won't Halt Shale Revolution

Friday, 24 Oct 2014 14:20 PM

Some experts have speculated that the oil price drop, which pushed U.S. crude prices to a two-year low last week, would  . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved