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February 28, 2008

Sprint trumps the competition in US cell phone price war

Verizon Wireless was the first to announce a $99.99 unlimited voice plan followed by AT&T and T-Mobile, and now Sprint aims to undercut them all:

Sprint Nextel upped the ante in the $99.99 all-you-can-eat rate plan battle Thursday by introducing a service that includes unlimited voice as well as unlimited data and slew of premium services.

Called “Simply Everything,” the plan will give customers unlimited voice as well as unlimited data, text, e-mail, Web-surfing, Sprint TV, Sprint Music, GPS Navigation, and push-to-talk service for $99.99 a month. The company made the announcement during its fourth-quarter earnings call, in which the company also announced heavy financial and customer losses.

The new pricing plan is available to existing and new customers on both Sprint’s CDMA network as well as its Nextel iDEN network starting on Friday. Current customers will not have to renew or extend their contract to switch to the service.

Family pricing is $5 off on the second Simply Everything line, $10 off on the third and so on up to five lines. So how does it stack up compared to the competition?

Clearly Sprint’s offering offers customers the most bang for the buck. But some analysts have warned that if Sprint significantly undercut or added more services to the bundle for the same price that they could start a price war in wireless.

That may be bad news for the carriers, but customers won’t be complaining. There’s more in Sprint’s press release, but one worry with all this low price goodness is that Sprint’s poor financial condition will be exacerbated by the price war and throw a real crimp into WiMax deployment.

Posted at 9:44 pm. Filed under AT&T, Companies, Mobile Phones, Sprint, T-Mobile, Verizon, WiMax

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