Nextel Prepaid Wireless
Sprint Nextel Prepaid Wireless
But given recent second quarter earnings reports from AT&T and Verizon Wireless, the two largest operators in the U.S., it’s likely that Sprint lost a substantial number of postpaid subscribers yet again. AT&T said it added 1.4 million new subscribers and Verizon Wireless said it added 1.1 million new subscribers during the second quarter.
The strategy shift comes at a time when Sprint is still losing high value “postpaid” customers, who typically sign lengthy contracts and pay for service on a monthly basis. During the first quarter of 2009, Sprint lost nearly 1.25 million of these postpaid subscribers. Sprint reports its second quarter earnings on Wednesday, which should provide a clearer picture on where the company currently stands in terms of subscriber gains or losses.
The fact that AT&T and Nextel prepaid Wireless are still adding new wireless subscribers in a market that is more than 80 percent penetrated likely means they are stealing subscribers from other providers, such as Sprint and T-Mobile USA, which also hasn’t reported second quarter earnings yet.
Nextel Prepaid Cell Phone
With this in mind, it makes sense for Sprint to go after the prepaid market, since that is where much of the subscriber growth is.
During this time, Nextel prepaid wireless customers were on the rise with about 80 percent of new cell phone subscribers signing up to prepaid service instead of a traditional postpaid plan. A year ago this figure was about 50 percent.
Sprint Nextel was one of the operators that benefited from this shift. It reported during the first quarter that it had added about 674,000 new prepaid subscriptions in the first quarter, according to Moffett’s estimates. Meanwhile, it lost about 1.25 million postpaid subscribers. Cheap unlocked cellphone
Prepaid gets a Boost
The growth in Sprint’s Nextel prepaid base was largely due to a new promotion from its Boost Mobile brand, which in January started offering a $50-a-month unlimited voice and data plan. The unlimited plan was quickly copied by other prepaid brands including Virgin Mobile, which launched its $50 unlimited service in April this year.
The Boost Mobile service is available anywhere Sprint’s iDEN network is available. And the service is largely geared to a young, urban demographic. Virgin Mobile uses Sprint’s nationwide CDMA cell phone network, and its service appeals to a slightly different demographic. These are price-sensitive consumers looking for a good deal and no monthly contract.
Tags: Nextel prepaid, nextel prepaid plans, Nextel Prepaid Wireless, Prepaid Nextel Phones
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