Regional wireless operator C Spire is bringing back the long-term contract with a new twist. The company is offering an “Inflation Retaliation” plan that delivers 12 months of free wireless service to new and existing customers that sign up for a new line of service. The only catch is that the user must sign a 36-month contract.
C Spire isn’t subsidizing any devices with its Inflation Retaliation plan. Customers must either buy a new device or use an existing device. After the first year of the free service, the user then will be on the hook to pay $50 per month (with autopay) for the company’s Unlimited50 plan that includes unlimited talk, text and 50 GB of high-speed data.
In a video on the company’s web site about the new rate plan, Wade Smith, SVP business and new product development at C Spire, said that the Inflation Retaliation plan will be available for “a limited time” and added that taxes and fees still apply and upgrades are not eligible. He also said that if a user cancels or changes plans before the end of 36 months, an early termination fee may apply.
Jeff Moore, principal with Wave7 Research, said that C Spire’s Inflation Retaliation plan is a new twist on an old trick, which is requiring customers to sign long-term service contracts. However, instead of using the contract to pay for phone subsidies, C Spire is using it to pay for 12 months of wireless service. Moore called the plan “innovative” but added that it’s easy for C Spire to do something like this as it has its own network, unlike some of its mobile virtual network operator (MVNO) competitors.
C Spire’s wireless network covers parts of Tennessee, Mississippi, Alabama and the Florida panhandle. The operator is privately held and doesn’t face the same scrutiny that publicly held wireless companies often face.
Both AT&T and Verizon have responded to inflation pressures by raising their prices on some of their plans. Verizon increased its administrative fees and raised its rates on older legacy data plans. AT&T increased the price of some of its legacy plans.
Meanwhile, C Spire is also facing increased competition from cable MVNOs. WideOpenWest (WOW) launched its WOW! Mobile service powered by Reach in its footprint, which includes Alabama, Florida and Georgia. WOW! Mobile offers four different rate plans with prices ranging from $15 per line per month for 1 GB of data to $45 per line per month for 20 GB.
Earlier this year C Spire introduced a new discounted wireless brand, Solo, a no frills brand that offers unlimited service for $35 a month. Solo is sold online and doesn’t have retail stores and at the time of launch in April it was only available to Mississippi residents. C Spire said the target audience for the brand is tech-savvy, value-driven consumers that have no need for retail stores.