) will offer free services to students in the U.S. as part of it
promotional strategy to capture more market share. The company,
in collaboration with
), is offering free network service for up to one year to high
school and college students. Sprint is expected to gain this
strategy that will likely increase its smartphone sales and
capture the untapped market of students unable to afford other
To avail the new promotional offer, students have to buy
phones at the student activated price and sign up for free
services including unlimited talk, text and 1GB of data on
smartphones. In addition, students can avail unlimited data
services for just $10 a month, excluding additional charges.
These offers are available at all Best Buy and Best Buy Mobile
We believe that the new promotional strategy will add to the
company's subsidy burden, already heavy with
) iPhone subsidy. Simultaneously, it ensures a meaningful revenue
stream in the future. As the technology progresses, it will
attract more teenagers toward usage of data services and that
would also entail increased penetration of smartphones. Since
Sprint is already making efforts to tap this market through its
lucrative offers, it will try to lead this target market with an
array of customized and affordable services.
Sprint is also focusing on revenue growth in its core platform
business. Sprint's multi-brand like Boost Mobile, Assurance
Wireless and Virgin Mobile as well as innovative offers like $50
Monthly Unlimited plan with Shrinkage, Beyond Talk and
Broadband2Go are contributing significantly to subscriber
In the third quarter, Sprint registered growth in its service
revenues thanks to the introduction of new pricing plans such as
Unlimited, My Way and My All-In plans that include unlimited
talk, text and data. In addition, the company has also gained
from its plan, Sprint One Up, which offers unlimited talk, text
and data along with smartphone upgrade every 12 months.
Sprint, which operates with mega carriers like
Verizon Communications Inc.
), has a Zacks Rank #3 (Hold).
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