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Leap launches latest salvo in prepaid price war
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Leap Wireless is adding more features to its unlimited prepaid plans, action that comes on the heels of major price cuts from Leap rivals MetroPCS and TracFone.
Leap said it would add unlimited Web and 411 access to its $40 per month unlimited voice, text and picture messaging plan. And the carrier's $45 monthly plan will now include unlimited email, unlimited data backup and 30 roaming minutes per month. Leap's $55 plan is the same as its $45 plan but gives subscribers 200 roaming minutes per month. Leap's new plans go into effect today.
Leap announced the changes just days after rival MetroPCS unveiled a new $40 unlimited monthly plan. Leap spokesman Greg Lund told FierceWireless the new changes were not done in response to MetroPCS's pricing changes, and that Leap's new plans had been in the works for a few weeks.
Nevertheless, Lund did acknowledge that competition in the unlimited prepaid space is heating up in some markets. "This enables to more responsive to competitive pressures in individual markets," he said.
"We believe both of these moves further support our thesis of ARPU declines in 2010 for both Leap Wireless and MetroPCS versus consensus which we believe shows little or no decline next year despite a market that is becoming increasingly more competitive," wrote Pali Research's Walter Piecyk.
For more:
- see this release
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Comments
Posted by Anonymous | August 4, 2009 - 6:36am
Leap is an interesting service, however it is a little hazy to me whether the service provides premiums for long distance. i really like the service straight talk because i get unlimited nationwide minutes and texts for$45. As college student away from home it really helps to have a nationwide plan like the one i have.
Posted by Auglin | August 5, 2009 - 9:27pm
The first Straight Talk plan I purchased was for $30 for 1000 minutes/1000 text and data. The NEW and IMPROVED STRAIGHT TALK offers UNLIMITED nationwide, anytime minutes, unlimited text and data for only $40!! Incredible! I really think it's going to be tough for Leap to beat this deal. I don't even conider MetroPCS a contender cause their phone reception really lacks and they have a lot of call drops - never the case w/ TracFone. I think this new price strategy will definitely benefit the consumer ultimately will get contract providers thinking about how they market their services.
Posted by GeorgeA | August 6, 2009 - 12:20pm
Straight Talk is a very good unlimited plan because they have such a good network but I don't need unlimited anything, I'm far to frugal which is why I am happy to stay with my simple Tracfone, I only pay $10 per month and I can even carry my minutes over if I have any leftover.
Posted by Peter | August 6, 2009 - 2:11pm
Straight Talk does appear to be the superior plan even though it is $5 more expensive. @Auglin, where did you see it for $40? THAT would be even better. Regardless, I am willing to pay the 5 bucks extra for the better coverage provided by Straight Talk. Plus, there is Leap's roaming charges that can get very expensive, very quickly.
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