Wednesday, January 14, 2009

Sprint's Plan To Undercut The Cell Phone Market

http://online.wsj.com/article/SB123199251112984943.html

Beginning on January 22, Sprint's Boost Mobile Company is going to offer a $50 a month unlimited plan. This plan includes unlimited text, calling, and internet. I am upset about this because I currently have a Sprint phone and I am paying $99 a month for the "everything plan". This new offer is Sprint's attempt to undercut the market by being the lowest cost producer.

Boost Mobile is trying to change its image from just being a small cell phone company for the younger generation. Their hope is to appeal to consumers who are looking to save money. There is a danger that they can upset their traditional consumer base, but Boost feels like all consumers including their younger audience will enjoy this new offer.

Personally, I would never buy a Boost Moblie phone because I really don't no a lot about the company. But I think this is a smart move by Sprint to try to increase the number of users they have in a struggling sector.

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