Sprint Nextel Corp.
) recently announced the launch of unlimited plans for voice,
text and data services. The service, known as Sprint Unlimited
Guarantee, would offer unlimited data for $30 a month on
smartphones and $10 per month on other phones. In addition, voice
and messaging services will be offered for $50 for subscribing to
the first connection and thereafter will be charged less for
subscribing to additional connections.
After declaring its successful merger completion with Japanese
telecom company, SoftBank, Sprint's recent move towards product
differentiation and promoting its brand signifies its aggressive
take on establishing its foothold against major rivals
Verizon Communications Inc.
Sprint is focusing on revenue growth in the core Sprint
platform business. In this platform, increasing penetration of
smartphones, in particular
) iPhones and the $10 data premium plan are accelerating
post-paid wireless subscriber growth and average revenue per user
(ARPU) with an improving churn rate.
With regard to prepaid, Sprint's multi-brand like Boost
Mobile, Assurance Wireless and Virgin Mobile as well as
innovative offers like the $50 Monthly Unlimited plan with
Shrinkage, Beyond Talk plans and Broadband2Go are making
significant contributions to the company's subscriber growth.
Additionally, the company started offering the popular iPhone
through its no-contract prepaid Virgin Mobile brand and WiMAX
service via both prepaid Virgin and Boost Mobile.
Sprint's core platform business also depends upon the success
of its multi-billion dollar restructuring program known as
Network Vision. Through this plan, the company is concentrating
on the core Sprint platform, which includes CDMA, WiMAX and LTE
technologies, and the eventual termination of the Nextel platform
(iDEN business). The company began the deployment of CDMA voice
on 800 MHz in the first quarter and is further expected to deploy
LTE on 800 megahertz by the fourth quarter of the year. This
network restructuring enabled the company to abort the Nextel
platform, ultimately removing higher expenses of running two
separate networks. The company expects the Network Vision
deployment to be over by the end of 2013, two years ahead of the
Sprint has a Zacks Rank #3, implying a Hold rating.
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