Sprint launches new Family plans, aims for high-ARPU users


After recently promising big price cuts, Sprint (NYSE:S) has launched Family Share Packs, a pricing scheme that bears a strong resemblance to AT&T and Verizon's subsidy-free shared data plans. Unlike regular Framily plans, there's no drop in per-line charges upon adding new members.

Sprint argues its pricing sharply undercuts rivals. For example, a family sharing 20GB between four lines would pay $160/month, less than the $210/month charged by AT&T and Verizon for similar plans, and the $180/month charged by T-Mobile (NYSE:TMUS) for a plan featuring 5GB/line for four lines.

However, Sprint fails to undercut T-Mobile among families requiring less data. With Sprint charging an extra $10/month per line to those buying a bucket smaller than 20GB, an 8GB bucket costs $170/month to a family of four, and a 4GB bucket $140/month. By contrast, a $140/month T-Mobile plan provides 12GB (3GB/line) to a family of four.

At the same time, Sprint is following T-Mobile's lead in offering aggressive short-term promotions: Until the end of September, the carrier is waiving $15/month access line charges through 2015 for families buying plans with 20GB or larger buckets, and is also throwing in an extra 2GB/line.

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Comments (9)
  • Yankeeworld3
    , contributor
    Comments (111) | Send Message
     
    The 20GB plan is no good if you can't get a signal....sprint....
    18 Aug 2014, 08:42 PM Reply Like
  • PharmSterZzZ
    , contributor
    Comments (253) | Send Message
     
    I DO GET A SIGNAL. you don't have a signal b/c u live from another planet.
    18 Aug 2014, 10:01 PM Reply Like
  • PeeEm
    , contributor
    Comments (18) | Send Message
     
    I don't get any speeds above .4-.5
    18 Aug 2014, 11:11 PM Reply Like
  • adas88
    , contributor
    Comments (12) | Send Message
     
    Wow - is this real?
    18 Aug 2014, 11:18 PM Reply Like
  • IncomeYield
    , contributor
    Comments (3737) | Send Message
     
    Eventually there will be a device price war also.
    Good for consumers, maybe not so good for shareholders.
    I suspect it starts shortly after the iPhone6 intros.
    18 Aug 2014, 11:21 PM Reply Like
  • Liam Garrity-Rokous
    , contributor
    Comments (451) | Send Message
     
    A price war definitely looks imminent. However, this is not good news for Sprint and today's price action in early morning trading shows that.

     

    Sprint said its new pricing plan was going to be very "aggressive" but this definitely doesn't sound all that aggressive when T-Mobile is still offering a lot of cheaper plans. It may help Sprint but it won't be enough to get them out of the hole that they are currently in (i.e. they will probably still lose subscribers but just lose fewer).

     

    Here's some info about what investors EXPECTED Sprint to come out with: http://on.wsj.com/1oNqpzH

     

    After reading that you will see that Sprint's announcement isn't as aggressive as people thought it would be.
    19 Aug 2014, 09:50 AM Reply Like
  • Jeb1517
    , contributor
    Comments (82) | Send Message
     
    So let me get this straight. Sprint is offering a 20GB bucket for $160/month, but the 8GB bucket costs $170/month? I'd also like to echo Yankeeworld3 and PeeEm's comments regarding Sprint's terrible service. Even when the phone says LTE I'll be lucky to stream a video from ESPN. The data and connection quality is just atrocious. I live in Chicago suburbs.
    19 Aug 2014, 10:41 AM Reply Like
  • 3jpqx5
    , contributor
    Comments (96) | Send Message
     
    What knucklehead came up with the term 'FRAMILY' plan!! Rediculous marketing lingo...what are these people trying to say for cryin' out loud...long s,t,vz,vod.
    20 Aug 2014, 02:00 PM Reply Like
  • jsemon
    , contributor
    Comment (1) | Send Message
     
    I would like to add that this is not a true comparison... with T-mobile's offering you also get data for your hotspot, international text (from the US) and international data (outside of the US). So throw that onto Sprint's plans and let's see what the tru comparison is... Not to mention Sprint's lack of service.
    21 Aug 2014, 02:23 PM Reply Like
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