updated 04:15 pm EDT, Tue August 12, 2008
Sprint to reduce rates?
In order to stop losing subscribers, wireless phone and data provider Sprint is reportedly considering drastically cutting the rates of its phone-as-modem monthly plans, from $40 to $15 per month. While the move would not make more money for Sprint on an individual customer basis, the added customer base would the company in the long run by encouraging more customers to add data to their service.
The company recently reported a significant loss of subscribers, and competitors are attempting to block Sprint's merger with Clearwire to bring WiMAX to North America. Retaining the phone-as-modem customers is commonly believed to give the company a better chance of converting them into WiMAX subscribers once the service goes live.
The company has recently received mixed criticism for attempts to push higher data use with its regular cellphone plans, which require customers to move up to a minimum $70 Simply Everything plan to get regular on-phone data use. Customers using Sprint's SERO employee referral plan are also required to sign up with an Everything Plus plan roughly double the price of the earlier example.