Sprint (NYSE: S) MVNO Credo Mobile, which is known for its social activism, launched a "Ditch Big Telecom" campaign that will pay new customers up to $350 per line (up to five lines) in early termination fees if they agree to switch to Credo's service.
Credo offers no-contract rate plans that include unlimited smartphone data for $29.99 per month, unlimited free texting for two years and an annual handset upgrade. The company's voice plans range from $30 for 200 minutes to $60 for unlimited talking.
Luring customers away from their current wireless service provider by paying their ETFs has become the latest enticement offered by the traditional operators. T-Mobile US (NYSE:TMUS) kicked off the trend in January by offering to pay up to $650 in ETFs to customers who switched to the company and traded in an existing phone. In April, Sprint followed T-Mobile's lead and launched its own ETF payoff promotion by promising to pay $650 to subscribers who switch from another carrier to one of Sprint's new Framily family calling plans and trade in their phone. Credo, however, appears to be one of the first MVNOs to get into the ETF game.
According to company spokeswoman Sarah Lane, Credo has more than 100,000 subscribers and has been offering to pay ETFs since 2006. Lane said the company keeps its costs to a minimum because it doesn't spend money on TV advertising, lobbying or political donations. Instead Credo donates a portion of its revenues to support non-profits though its activism arm, Credo Action.
According to the company's Web site, Credo launched in the mid-1980s as Working Assets and sold credit cards. In the 1990s the company added long distance service to its portfolio. In 2006 it launched the MVNO service and changed its name to Credo Mobile. Credo Action has raised $75 million for nonprofit groups like Democracy Now!, Brennan Center for Justice, Doctors Without Borders, ACLU, EFF, Planned Parenthood and 350.org, according to the company's Web site.
In an interview earlier this year with FierceWireless, Karen Freitag, vice president of global sales and business development for Sprint wholesale and emerging solutions, used CREDO as an example of a Sprint MVNO with a loyal user base that successfully serves a market niche.
- see this release
- see CREDO's Web site
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