The prices are a little high compared to what Sprint is offering (everything for $120; everything + tethering for $150)... but both are way too high. IMO: the attractive price point is at half that number ($75/mo for unlimited everything including tethering).
100.00 seems way high when you consider Cricket was recently offering unlimited local/ and nationwide ld for 30.00 per month. No contract. Course if you leave the area you pay roaming charges...
Yup. $50/mo for unlimited everything except tethering is what I believe will be the market sweet spot. And $75/mo with tethering.
Sprint and Verizon are just going to "prove" to the world that they can't sell unlimited service by pricing it at that level. They'll neglect to add "but we might have made it stick by selling it at the prices charged by MetroPCS, Cricket, and Boost".
Holler!!! With this coming around, just a matter of time before AT&T takes the caps off of data again, since it will no longer be an "industry standard" to cap data.
Go back to your school, little one. You clearly haven't done your homework. The ONE carrier you picked (helio) does in fact have a nationwide unlimited voice and unlimited data plan, for less $ than either Sprint or Verizon are asking.
Further, "nationwide" service only matters if you'll actually be using it "nationwide". Most people don't travel enough to care about that. In those cases, MetroPCS, Cricket, and Boost's "region" specific plans aren't a _real_ limitation. You can use all 3 on the road for a fee, or use them "unlimited" while near home. For half as much money per month.
The problem for Sprint and Verizon is: they're charging extra for something most people wont need, and they wont want to pay for it. So they'll go with the carriers that give them what they want (unlimited use) on the basis that they need (near home) for far less money.
It doesn't take a genius to see that anywhere MetroPCS, Cricket, or Boost are available, Sprint and Verizon will have to compete with them on those price points ... and at that point, it doesn't make sense to have drastically different rates (twice as much money) based on your zip code ... so they might as well offer those rates wherever they offer the unlimited plans. If they don't, then they're just baiting MetroPCS to expand into those other cities more quickly (and Metro only charges off-network roaming, not roaming when you're in a different MetroPCS city).
One way or the other, the big carriers have to recognize that $100+ for unlimited service isn't going to be a reasonable price point. It'll limit them to a niche market (high income traveling businessmen) at best. And they'll lose everyone else to MetroPCS, Cricket, and Boost.
If $100 for unlimited is an "unreasonable" price point, please explain all the customers that VZW, AT&T and Sprint have who gladly pay more than $100 for only 2,000+ minutes?
You are actually thinking that VZW offering unlimited NATIONWIDE calling (nationwide is a lot more common and neccessary than you think) for $100 a month will NOT help them compete against the likes of MetroPCS and Cricket when VZW ALREADY smashes the hell out of them in net adds quarter after quarter by a ridiculous margin without unlimited nationwide calling? Doesn't make any sense.
if the big 4 were smashing them, then the unlimited carriers wouldn't be expanding consistently. Even within Sprint, the profitable part of the company is Boost. Clearly the expanding part of the market right now is people for whom "nationwide" isn't the important part of the equation.
With Sprint specifically, they're going to continue to hemorrhage customers with these prices. So they're going to have to lower prices in order to reverse that trend. Then Verizon will have to do the same, in order to keep expanding instead of start losing ground to Sprint.
VZW had 2.1 MILLION net new customers in the 4th quarter of 2007. How many did MetroPCS and Cricket add?
I can't find the official numbers but I do know it's only a couple hundred thousand for each. So yeah, they are likely adding 1/10th what VZW and AT&T add each quarter.
Reader Comments (Page 1 of 1)
john @ Feb 17th 2008 8:36PM
What about tethering?
The prices are a little high compared to what Sprint is offering (everything for $120; everything + tethering for $150)... but both are way too high. IMO: the attractive price point is at half that number ($75/mo for unlimited everything including tethering).
TJ @ Feb 17th 2008 8:43PM
100.00 seems way high when you consider Cricket was recently offering unlimited local/ and nationwide ld for 30.00 per month. No contract. Course if you leave the area you pay roaming charges...
john @ Feb 17th 2008 8:59PM
Yup. $50/mo for unlimited everything except tethering is what I believe will be the market sweet spot. And $75/mo with tethering.
Sprint and Verizon are just going to "prove" to the world that they can't sell unlimited service by pricing it at that level. They'll neglect to add "but we might have made it stick by selling it at the prices charged by MetroPCS, Cricket, and Boost".
Dorks.
Dave @ Feb 17th 2008 9:28PM
Holler!!! With this coming around, just a matter of time before AT&T takes the caps off of data again, since it will no longer be an "industry standard" to cap data.
john @ Feb 17th 2008 9:34PM
There is that: hopefully the fact that Sprint and Verizon have done this will mean that AT&T will soon follow, even if the prices are just as high.
From there, it's just a matter of competition until the prices drop down to the price that the market will properly bear.
john @ Feb 17th 2008 9:35PM
oh, and T-Mobile, too. Part of me expects to see the best prices come from T-Mobile.
Marni @ Feb 18th 2008 2:39PM
Truly a moron arent you? These plans are trulu UNLIMITED voice and UNLIMITED data NATIONWIDE!!! Helio doesnt even come close to even be a contender..
john @ Feb 18th 2008 3:07PM
Marni:
Go back to your school, little one. You clearly haven't done your homework. The ONE carrier you picked (helio) does in fact have a nationwide unlimited voice and unlimited data plan, for less $ than either Sprint or Verizon are asking.
Further, "nationwide" service only matters if you'll actually be using it "nationwide". Most people don't travel enough to care about that. In those cases, MetroPCS, Cricket, and Boost's "region" specific plans aren't a _real_ limitation. You can use all 3 on the road for a fee, or use them "unlimited" while near home. For half as much money per month.
The problem for Sprint and Verizon is: they're charging extra for something most people wont need, and they wont want to pay for it. So they'll go with the carriers that give them what they want (unlimited use) on the basis that they need (near home) for far less money.
It doesn't take a genius to see that anywhere MetroPCS, Cricket, or Boost are available, Sprint and Verizon will have to compete with them on those price points ... and at that point, it doesn't make sense to have drastically different rates (twice as much money) based on your zip code ... so they might as well offer those rates wherever they offer the unlimited plans. If they don't, then they're just baiting MetroPCS to expand into those other cities more quickly (and Metro only charges off-network roaming, not roaming when you're in a different MetroPCS city).
One way or the other, the big carriers have to recognize that $100+ for unlimited service isn't going to be a reasonable price point. It'll limit them to a niche market (high income traveling businessmen) at best. And they'll lose everyone else to MetroPCS, Cricket, and Boost.
elgee02 @ Feb 18th 2008 6:09PM
@ john:
If $100 for unlimited is an "unreasonable" price point, please explain all the customers that VZW, AT&T and Sprint have who gladly pay more than $100 for only 2,000+ minutes?
You are actually thinking that VZW offering unlimited NATIONWIDE calling (nationwide is a lot more common and neccessary than you think) for $100 a month will NOT help them compete against the likes of MetroPCS and Cricket when VZW ALREADY smashes the hell out of them in net adds quarter after quarter by a ridiculous margin without unlimited nationwide calling? Doesn't make any sense.
john @ Feb 18th 2008 6:29PM
elgee:
if the big 4 were smashing them, then the unlimited carriers wouldn't be expanding consistently. Even within Sprint, the profitable part of the company is Boost. Clearly the expanding part of the market right now is people for whom "nationwide" isn't the important part of the equation.
With Sprint specifically, they're going to continue to hemorrhage customers with these prices. So they're going to have to lower prices in order to reverse that trend. Then Verizon will have to do the same, in order to keep expanding instead of start losing ground to Sprint.
elgee02 @ Feb 18th 2008 7:30PM
john:
VZW had 2.1 MILLION net new customers in the 4th quarter of 2007. How many did MetroPCS and Cricket add?
I can't find the official numbers but I do know it's only a couple hundred thousand for each. So yeah, they are likely adding 1/10th what VZW and AT&T add each quarter.
john @ Feb 18th 2008 7:42PM
elgee:
1/10 the new customer base, with 1/10 of the native coverage, isn't a bad comparison.
The real stats to look at (which are probably impossible to find): how do their growth rates compare within the same markets.