Wireless service provider,
), announced a new service plan - Framily - that allows customers
to form groups and lower their costs by as much as $25.00 per
month. Since the innovative pricing plans are pocket friendly and
come with an enhanced wireless experience, these are accretive to
the company's customer base. The Framily plan is slated for a Jan
Sprint's new service includes unlimited talk and text and 1 GB
of data. Initially, a new customer will have to pay $55.00 per
month but as the number of people in the group increases, the
cost will be reduced by $5.00 per person. For a group of seven
people, the cost will be lowered by $25.00 per person. Framily
can also be customized depending upon the requirements of every
individual in a group. Moreover, for $20 a month, one can also
receive unlimited data under this plan.
Sprint is focusing on revenue growth in the core Sprint
platform business. In the third quarter, Sprint registered a
surge 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
Further, the company is increasing the penetration of prepaid
plans. Sprint's multi-brand services including Boost Mobile,
Assurance Wireless and Virgin Mobile as well as innovative offers
like $50 Monthly Unlimited plan with Shrinkage, Beyond Talk plans
and Broadband2Go are contributing significantly to the company's
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. The
company also offers Unlimited Guarantee plan for unlimited data
at $30 a month on smartphones and $10 per month on other phones
including voice and text service at $50 on first connection.
We believe these initiatives will broaden the company's
customer base as well as increase smartphone penetration and
average revenue per user (ARPU) with improving churn rate.
Sprint holds a Zacks Rank #3 (Hold).
Better-ranked stocks in this sector include
Hawaiian Telcom Holdco, Inc.
Level 3 Communications, Inc.
). Both carry a Zacks Rank #1 (Strong Buy).
APPLE INC (AAPL): Free Stock Analysis Report
HAWAIIAN TELCOM (HCOM): Free Stock Analysis
LEVEL 3 COMM (LVLT): Free Stock Analysis
SPRINT CORP (S): Free Stock Analysis Report
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