U.S. carriers' embrace of equipment installment plans, and consumers' newfound appetite for such plans, helps operators' bottom lines. But analysts say that as consumers hold onto their phones for longer than they used to under two-year contracts, it is likely going to cause pain for smartphone makers that had grown accustomed to consumers upgrading to new phones more often.
Sprint unveiled a new pricing scheme called "All-In" that incorporates an unlimited $60 per month service plan and a $20 per month device payment in one price point. Sprint says that the pricing plan is more transparent about the total monthly cost a customer pays than other carriers' plans, and is rolling out an advertising campaign featuring soccer star and businessman David Beckham to tout the new offering.
Sprint will launch a project this month that ultimately will involve the deployment of 70,000 small cells, according to a report by RBC Capital Markets analysts Jonathan Atkin and Brian Hyun.
Sprint expanded its "Direct 2 You" service, in which sales representatives meet customers at their homes, offices or other locations to set up their new smartphones, to four new major markets: Denver, Los Angeles, New York City and San Francisco. The carrier plans to keep rolling out the offering to new markets throughout 2015, including Dallas, Tampa, Fla., and Washington, D.C., in early July.
Sprint paid CEO Marcelo Claure nearly $21.8 million in total compensation for its fiscal year 2014, which ran until the end of March 2015, according to a Securities and Exchange Commission filing. The disclosure makes Claure among the highest-paid executives in the U.S. telecommunications sector and also places him above executives from Verizon Communications and AT&T on a pro-rata basis, since Claure only became CEO of Sprint in August 2014.
Analysts at Jefferies predicted that 25 percent of T-Mobile US' customers will choose the carrier's new "Jump! On Demand" handset upgrade program next year. "We note that our forecast is meaningfully lower than Sprint's ~50% leasing take rate, as unlike T-Mobile's offer, Sprint's leasing offer is cheaper than its comparable EIP offer," wrote Jefferies analysts Mike McCormack, Scott Goldman and Tudor Mustata in a note to investors this morning.
Sprint is going to show positive postpaid subscriber additions in the second quarter thanks to improved network performance and the continued adoption of its "Cut Your Bill in Half" promotion, according to a research note from analysts at Wells Fargo.
T-Mobile US introduced a new version of the "Jump!" handset upgrade program that will let customers upgrade their smartphones up to three times every 12 months.
Sprint CEO Marcelo Claure met on Monday with Miami-Dade Mayor Carlos Gimenez and discussed Sprint's plans to expand and enhance its network in the Miami area in what could be the first hints at the elements of Sprint's massive network densification project.
Sprint CEO Marcelo Claure said last week the carrier might raise the pricing of its unlimited smartphone data plans later this year and could eventually get rid of the option altogether. Financial and industry analysts say Sprint is unlikely to remove the unlimited option until it significantly improves its network quality, though analysts are split on how such a move would impact Sprint's subscriber base.