After Verizon’s announcement of new 5GB data plan at $55 (exclusive of fees and taxes), mobile carrier Sprint Corp (NYSE:S), on Friday, has also come up with its new pricing of the unlimited data plan at $50 per month. Noticeably, it has slashed down the price by $10 which was $60 earlier.
Sprint has introduced this data plan offer with limited time validity only. The offer is valid till 30 January, 2017 and will get back to the old rate after 30 March 2018. Sprint has put on certain limits on resolution with this new tariff such as video streaming for 480p, games for 2Mbps while speed for streaming music has also been capped. However, there is no change in additional lines costing which stands at $40 for 1 additional line and $30 for further additions. It is expected to degrade the streaming qualities even more after 23GB of data consumption in a particular billing cycle.
Expected benefits to Sprint
Cutting down rates is expected to add new customers in Sprint’s customer base on a high rate. Although Sprint is yet to top the chart for network strength, it is already on a verge to make network improvements and this move is being assumed to be one of the crucial steps in the carrier’s growth. With the saving of $5 as compared to Verizon’s $55 plan, customer would be able to save up to $120 in the year. Seeing the trends of discount offering by Verizon and T mobile, Sprint is surely trying to come up to join the other top carriers’ race.
Increased competition in the market
With discounted plan tariffs been offered by the carrier companies, healthy competition in the market is getting promoted along. It surely brings the bunch of happiness for the customers of these companies at competitively high discounts. However, customer need to understand the network stability and other differences while switching to other networks basis on offered plans.
On 27 January 2017, Sprint’s stock price remained 9.22USD, down by 2.23%.