Boost Unlimited going nationwide in 2009
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One of the bigger stories in mobile last week was that Sprint plans to keep the iDEN network, after months of speculation that they’d sell it. Just before we headed into Halloween evening, the company announced a further plan: they will migrate Boost Unlimited to the iDEN network from Sprint’s CDMA network, where it had been offered. This means a number of things for unlimited, the chief of which is a national coverage area. This gives Boost a leg up on regional unlimited competitors Cricket wireless and Metro PCS.
Boost Unlimited is currently limited to a select number of markets, just like Metro and Cricket, despite the nationwide CDMA presence of Sprint. Perhaps Sprint just doesn’t want to cut into its own Simply Everything unlimited plan. In any case, though, the full migration to the iDEN network means callers can roam about the country and still enjoy unlimited calling.
The question, of course, is of the price. Boost Unlimited averages around $50 per month, with $10 extra for unlimited text messaging. Even at $70 or $75 per month for both features, they’d still undercut the competition. With many analysts predicting trying economic times ahead, that could be a viable solution for those whose phone use is a necessity.
Another angle to consider is that this triggers a price war. With consumer spending expected to be down, perhaps all carriers would do well to reduce their unlimited calling rates.
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With the approximate airtime cost of about 1 cent per minute, unlimited plans can dicey propositions for carriers. If a customer uses 5,000 minutes on a $50 unlimited plan there is simply no profit for the carrier. Sprint’s plan to use the iDen network to assist in Sprint’s overall bailout could result in retreat once the unlimited prepaid ARPUs start rolling in. Prepaid unlimited customers are quite different users than postpaid unlimited users.
Posted on November 3rd, 2008 at 8:48 pm
MetroPCS and Cricket still offers a more robust CDMA network than the patchy IDEN that has fallen apart owing to Sprint’s lack of investment. Price points are lower and these companies ARE profitable This announcement is at best disruptive, however without distribution for Boost Unlimited and no public confidence it amounts to a shot in that nobody will hear. Dan Hesse is trying to unload the ugly stepchild.
Posted on November 5th, 2008 at 9:43 am
If you look at http://www.gsmbundles.com, they are already offering what Boost is offering and at a much lower price if you look at the data offering that is also included.
Posted on November 6th, 2008 at 1:16 am