TracFone's $45 unlimited offer to 'stun' rivals

Hi, this is Tatum Hawkins at Boost Mobile. We welcome a real nationwide no contract competitor into the market. This type of offer by TracFone spurs healthy competition and ultimately provides consumers with more options to choose from, proving that unlimited features at a reasonable price is where the market is heading.

Given this, we are confident our nationwide $50 Monthly Unlimited plan is still a best-in-class offer. Unlike TracFone's unlimited offer, Boost Monthly Unlimited customers do not pay telecom taxes on top of their monthly payment. With us, what you see is what you get. We also feature more phones, with entry-level to high-end devices that include the sleek Stature i9 or the Clutch i465 which has a full QWERTY keyboard. Boost Monthly Unlimited is available nationwide at approximately 16,000 major retail and independent wireless dealer locations throughout the U.S., and our customers can count on Monthly Unlimited sticking around today and tomorrow. At Boost Mobile, we get that people want more than just a low price, they want a brand they can trust and be proud to be a part of, and that is who we strive to be for them.

Tatum, why do you always respond with these canned responses to prepaid unlimited offering stories? You don't need to sell to fierce wireless readers because, unlike your target market, most of us have bank accounts. The boost network is suspect at best, and I am sure many people will be excited to have a more reliable option for unlimited prepaid service.

MVNO VP: Because Boost's competition (like yourself) doesn't always like to tell the whole truth (even to people with bank accounts) - like saying Boost's network is suspect. Boost's network is fine by the way.

And VZW/TracFone customers are going to be surprised when they can't make outgoing international calls without being deactivated...

I don't think Mr. Hawkins needs to worry right away.
It has been established on Barron's online, web version of the famous and reputable financial weekly that Tracfone and Verizon have a six month trial in this offer. Apparently, Big Red is taking a wait and see approach. They want to be in the game without having to sacrifice their postpaid market. And by having a six month "off valve" option, they can stem and contain any "unreasonable usage abuse" of their "unlimited" offerings.

As for the original $30 1000 minute Straight Talk, no word on if that is a trial too, but seeing as that has a built in shutoff cap at a limited (if many) minutes, I would suspect that Verizon would leave that alone. Certainly more so then "unlimited". 1000 minutes is a lot, but is still not unlimited.

I think it's great to see competition, and no one should be surprised to see a carrier go below the $50 price point. Hopefully it's a successful trial and customers will win overall. If it's not profitable, they'll learn, and that's good as well in the long term. We need carriers to be profitable after all.

I think it's valuable to point out the limitations of different plans. No reload fees or telco tax for Boost is great, but no doubt that CDMA is going to be a better network, and for those with data devices, they get data included as well. Note that Boost's $50 plan does have sales tax added at the store level, so let's not pretend that it's truly fifty equals fifty ;-).

It will be interesting to see how the trial goes. I've added to the chart for customers to compare their options!
www.prepaid-wireless-guide.com/compare-unlimited-plans.html

Imagine if an unlimited voice only prepaid could be availabe for $20 mrc with an appropriate voice only device. Not only a home run, but could possibly sever traditional landline local and long distance. Possibilities are endless....

Has anyone confirmed to what extent TracFone has access to Verizon's network? Verizon offers many different tiers to their network. Does TracFone have access to the entirety of the Verizon network or just the original Verizon network minus roaming partners?
Also - is the TracFone offering truly available on CDMA in areas where they offer GSM coverage?

Are the $45 & $30 options available for existing Tracfones? I'm a fiercely loyal Tracfone user - virtually no dead zones anywhere I've been around the country (despite their horrendous customer service). But I don't want to go through loss of service while changing my existing phone number to a new instrument.

Are the $45 & $30 options available for existing Tracfones? I'm a fiercely loyal Tracfone user - virtually no dead zones anywhere I've been around the country (despite their horrendous customer service). But I don't want to go through loss of service while changing my existing phone number to a new instrument.

The offer is only in MetroPCS and Leap markets and yet to be rolled out nationally. On top of this, it's only available at WalMart - not other big box retailers.

TracFone is opportunistic in their wholesale agreements. They even have GSM phones riding the ATT network. I do wonder how they'll make money on this unlimited offer. If they do so, it's razor thin.

Sprint SUCKS and Boost is Sprint

Tatum, you may remain confident. I'd gladly pay the extra 5.00 a month for the superior customer service that Boost Mobile offers. I have decided to try Straight Talk and let's just say I got a customer service representative that didn't even have a handset, she had a microphone and speaker and I kept hearing my voice feedback. The ST website is abyssmal. I can do everything I need to service my account on Boost's website. ST has Tracfone's legendarily poor customer service. I would only consider it if they dropped the unlimited plan to 30.00 per month.

Sprint is really CDMA technology. Their Nextel service uses iDEN. I've never had a problem with their iDEN service. Personally, I'll sacrifice a small amount of coverage for excellent customer service. My Straight Talk trial has been an ordeal. I don't understand how people are willing to put up with Tracfone's poor customer service.

Happy to see the interest in Straight Talk.

Here's some information to clear up a few misconceptions:

Straight Talk is available nationally. Phones and service cards can be purchased at select Walmart retail outlets listed here: straighttalkDOTcom/retail

Or online here: straighttalkDOTcom

The coverage map is here: straighttalkDOTcom/Coverage

Straight Talk is a new service that requires new handsets, by the way.

I am new guy in the market and currently not using any of the services offered by Boost or Tracfone, but from an outsiders prespective i see emergence of healthy competition with the possibility of other players joining in leading ultimately to customer delight. Things like customer care ( though one of the key market differentiator and subscriber retainer) will follow as telcos will be forced to improve on those fronts so its just a matter of time.

Tracfone's customer service is really not that bad. I phoned them the other day and had no problems.
@Tatum Hawkins: You welcome a real nationwide prepaid competitor into the market? My opinion is that Tracfone has been doing it better and for longer. Tracfone's coverage is legendary, Boost's coverage compares very poorly to it. The number of dropped calls I experienced during the (short) period I used Boost was unbelievable. Unbelievable in a bad way, that is.

I am very pleased with my new Straight Talk Phone and package - I bought the $30 plan with 1000 minutes etc. I had no problems with getting started and nothing to complain about the customer service either. When I did the math I was convinced that Tracfone is now offering the best prices on the market can you believe - 2cents per minute, 1cent per text and the data is free, I think it's great.

Why Walter Piecyk maybe wrong about Leap/MetroPCS....

Verizon's ARPU is about $50 per subscriber, Tracphone maybe $10 per subscriber. Would VZW really sacrafice 80% of their revenue to compete with Leap and MetroPCS? What VZW customer would pay for a contract for limited use with an option for no contract unlimited usage at less then half of VZW's contract unlimited plan? Does this make sense to a fat-wallet VZW? Probably not...

Given Sprint Nextel's round after round of layoff's, most of those are legacy Nextel IDEN folks. Since Boost is an IDEN product, whose left to maintain a large network? No one...

One more thing, I saw an mobile billboard stating Boost having 1/2 as many dropped calls as another prepaid unlimited company. But if the shear amount of calls for Boost is a minor fraction of the number of calls their competitors customer's made, well sure the statement is true, but misleading...just like Boost to be Un-Wronged, but Mis-Lead...

I have boost mobile and as of today 7/8/2009..the text messaging downloads through the web and sometimes takes forever

You could ask the same thing about Sprint Nextel? Why would anyone use Sprint Nextel when they could have the Boost equivalent for half the price and no contract? Boost really shook up the industry in a way that will break traditional profit models for telecom. Boost caused a revolution which I am sure angered the other companies out there.

I had to drop Boost Mobile because of signal fluctuation problems, slow text messaging, and poor audio quality. People complained of hearing static whenever I spoke. iDEN (TDMA) is really not meant to handle the load Boost is putting on it.

I wonder if VZW is phasing out its in-house prepaid service in favor of just allowing Straight Talk/Tracfone to re-sell the service. It might be more profitable to operate this way.

I checked out the coverage and it doesn't appear to be in all areas of the country as StraightTalkMe indicated in the post. I am in Portland Or. I was going to try Boost as my daughter in San Francisco has it and loves it. I plan to wait to see if Straight Talk comes here. I have VOIP home phone and prepaid cell and would love to have only a cell phone if the price was $30.

Your comments are highly unsolicited, given the tone and approach you have as a PR expert for whicheva company - i don't care. If you have anything to propagate on behalf of your XYZ company, please do it...social channels are open, but adhere to minimum standards of quality and thoughts.

Above reply is in response to Ms. Tatum Hawkins' comments above

I can't find any info of when ST will be nationwide or is it already? Can't find it in Seattle area...anyone out there know, I want to try it. Has anyone ever used any of the three phones offered? Are they good ones? I currently have T-mobile prepaid and am happy with it, but also have VOIP and want to go to cell phone only as have so many of my friends. The Voip not always that good and end up using my cell phone anyway. Thanks.

The coverage is nationwide but Straight Talk has not opened its service beyond some pilot areas just yet. I am happy that there is service in Phoenix.

To Tatum Hawkins and anyone else who will listen - please offer something decent at $20-25, and free from all of the niggling taxes, charges, and fees. Even if it has to be paid quarterly (1500 minutes good for three months = $60.).

We need prices that are honest, not deceptive, free from ridiculous 25% overhead and backdoor charges.

I use Page Plus Talk N Text 1500, which lists at $39.95, but costs me about $32 each month when paid with $50 prepaid cards bought at a discount.

Unlike regular Verizon-based Tracfone, it appears from the coverage map that straight talk CANNOT roam.

The straight talk coverage map is inaccurate. I have gotten coverage where the map indicates that I shouldn't.

You will never see anything in the 20 - 25 range for a comparative plan. These are companies, not charities.

Something that has been pointed out on another site - if you look at the Service Area map, the green area indicates "Service Activation Area", not "Coverage Area". I suspect that the coverage area is much larger than the activation area.

I did a little digging around and I thing that the best bang for your buck is Straight Talk. $45 a month for unlimited nationwide anytime minutes and texts. Pretty awesome!

I ordered mine fro the website and will let you know how I like it. Can't beat the price though!

What a buzz over prepaid! How great. Whatever the point of view, the point is us consumers are no longer getting the short end of the cell phone stick. We have choices. Good prepaid providers have freed us from contracts. Welcome StraightTalk! And my response to the person who complained that you can only get StraightTalk at Walmart - where do you live? Up on the top of some inaccessible mountain where there isn't a Walmart?

all of those "competiors suck against metro pcs is the best nothing compares to it and now it has 40 dollars unlimited everything including high speed internet walkie talkie gps everything........

and it has more than 450 cities to its covarage

I'm happy to see all of the unlimited prepaid plans. I have an unlimited plan with at&t and it cost me about $150 with taxes and everything. I just purchase straight talk for my daughter and I am thinking about getting it for myself. Prepaid its not just for people with bad credit or no bank accounts as MVNO VP said. Its for anyone who wants a good deal.

Well... All I can really say is that, if you find something that works for you, then go for it. In a competition where saving money is key, there is going to be a sacrifice somewhere. Be it coverage, or customer service. To have both, there is a sacrifice of the monetary kind.

"I offer three values.
Customer Service, Coverage, & Cheap.
You can only choose two.
You can't have all three.

You can have Coverage, and it can be Cheap, but don't expect Customer Service.

It can be Cheap, and there can be Customer Service, but don't expect Coverage.

You can have Coverage, and Customer Service, but it certainly won't be Cheap."

Thank you. Pick which your willing to part with, and then you have what works for you. There is no better phone, just some work better for others.
This is Fox7x3 saying peace out.

Looking into Boost, the fine print says: "UNLIMITED USE DOES NOT MEAN UNREASONABLE USE. To ensure that all customers have access to reliable services provided at a reasonable cost, you may not use our service in a manner that interferes with another Boost Mobile customer's use of our service or disproportionally impacts Boost Mobile’s network resources. Prohibited Uses: Boost Mobile services are provided solely for live dialogue between, and initiated by, two individuals for personal use and as otherwise described in this policy. Boost Mobile services may not be used for any other purposes, including, but not limited to, conference calling, monitoring services, data transmissions, transmission of broadcasts, transmission of recorded material, interconnection to other networks, telemarketing, autodialed calls, other commercial uses, or other connections that do not consist of uninterrupted live dialogue between two individuals. In addition, Boost Mobile services may not be used to send or receive unusually high numbers of messages or engage in atypical web usage behaviors. We will presume you are engaging in a Prohibited Use, in violation of these terms and conditions, if you are placing an abnormally high numbers of calls, or repeatedly placing calls of unusually long duration (as compared to other customers on the same service plans), or if your usage is harmful or disruptive to Boost Mobile’s systems or services. If we determine, at our sole discretion, that you are using an unlimited service in violation of the Boost Mobile General Terms and Conditions of Service, these Terms of Service, or in any other manner that we deem to be unreasonable or excessive, then we may terminate individual calls, or, after providing notice to you, terminate your service, decline to renew your services, or offer you a different service plan with no unlimited usage components." That was enough to tell me I'm not interested in this plan.

I purchased a Boost Mobil phone with the 50.00 unlimited. I took the phone to work and tryed to make calls and I had no signal for making call or to recieve calls.Im in calif.just a little south of Santa cruz ca. along the coast.My wife also has a boost mobil on the same plan and when she calls me from Stockton california (more inland) she also has a bad signal or none at all.we are not happy with the service.maybe sprint and boost should hire someone to drive around calif,to report back,any dead areas(If you need someone for the california area,e.mail me and we can talk.my boost phone might miss the call) thanks

Time will tell if customers are willing to accept poor quality unlimited for $45 - 50 per month. Hopefully, this will push down the per minute price as well.. because a 60 minute tracfone card can cost upwards of $.36 per minute ( figure $19.99 with retail salestax of .08% avg ) so using more than 125 minutes per month you could buy unlimited...

Clearly this is a good thing if it forces Sprint to ultimately lower it's price AND/OR IMPROVE it's service in areas of consumer complaints vs losing customers to the competition!

Regarding Tracfonr
Customer service is horrible.
Reception is horrible.
I'm currently at 120 minutes on the phone with them today, and I'm actually worse off then when I first picked up the phone.
Save your time.
Save your Money.
Don't use Tracfone.

With all the delays in text messaging and the inability to actually view MySpace on BoostMobile's I9 I felt WRONGED. THat was a lot of money to lose (thank heavens for ebay!). I tried the Finesse from MetroPCS and was able to load Facebook and MySpace - no drama. I have a few bank accounts and properties by the way - saving money is making money.

I think StraightTalk is not being straight forward about their coverage. I think if it's TracFone then it will work anywhere TracFone works.
I don't think they advertise the coverage better because it would cause a rush to purchase and it would overwhelm Verizons network. Causing Verizon to drop them.
Verizon would not allow TracFone/StraightTalk to ruin their network with a cheaper service.

I am using Metro Pcs for about 2 years., unlimited everything for $45 with international calling for another $ 5. I have zero problem with Metro Pcs. sometime call drop but it can happen with any carrier which is ok for me once in a while i would recommend people to always buy a better brand phone dont goes to cheap ones.

I have had Boost for the last 7 months, replacing my T-Mobile contract service (which I have for about 4 years). The text messaging system overloads or goes down about once a month for around 12 hours on average. The voice service has been flawless, as has the walkie talkie. The mini wap browser on the phone has worked fine -- but it is not a blackberry or iphone -- you have to deal with the tiny print and slow data rates. It is sufficient for looking at email and checking stock prices, but you cannot really surf the web. Straighttalk may be a great offering if Verizon lets them keep it around after the 6 month trial. And I agree -- we need a $20-$25 plan with around 500 minutes and unlimited text.

I'm going to keep my Boost service for now, but I am anxious to hear how this Straighttalk thing works out -- so please post your results people as you get your phones!!!

Straight talk suck. They can't activate a phone on time and customer service is poor. The people in cs can't understand what you are saying and you can't understand them. I wouldn't get straight talk if I was you!!!!!!! Take it from a customer that never got the phone turned on.

Unfortunately, this is typical of the TracFone brand. I wouldn't port a number to them and activation takes patience. However, once you get through that headache, you need never contact their customer service again because the service works so well. As another note, I do not recommend the automatic payments. Given the notoriously poor customer service, maintain control over your purse strings. Otherwise, the service itself has not disappointed in almost 3 and half months.