Sprint launches unlimited voice and data plan
By Michal Lev-Ram
Sprint announced early Thursday that it would offer an unlimited voice and data plan, one week after rivals Verizon Wireless, AT&T and T-Mobile launched plans that let users make as many calls as they want for $100.
Dubbed “Simply Everything,” Sprint’s (S) new service will also cost $100 a month, but unlike its competitors’ plans, the third-largest carrier is offering unlimited data services in addition to unlimited calls. Analysts had speculated that Sprint would try to compete with other carriers by offering a lower-priced plan for about $60. Instead, the company is offering more features for the same rate.
“This is not so much about price, it’s about differentiating our company,” Sprint chief executive officer Dan Hesse said Thursday morning during a conference call with analysts. “We’ve let our business get too complex, and we’re trying to make it simpler.”
In addition to unlimited nationwide calling, Sprint’s new plan will give users unlimited access to data services like text messaging, e-mail and Web surfing in addition to the company’s mobile TV, music and navigation services. It will be available on all the company’s networks — both CDMA and iDEN — starting Friday.
Verizon was the first to announce its service last week, but AT&T and T-Mobile followed just hours later. T-Mobile’s unlimited plan includes “all-you-can-eat” text and picture messaging, while AT&T (T) and Verizon (VZ) are offering unlimited domestic calls only. The unlimited plans were a first among major carriers, as wireless consumers typically pick rate plans based on how many minutes they think they’ll use per month and are stuck with paying steep fees (as much as 45 cents per minute) if they go over their allotted airtime.
Sprint, which posted a fourth-quarter loss of $29.5 billion Thursday, says it is hoping its new voice and data plan will help differentiate the company.
But even CEO Hesse admitted that “Simply Everything” won’t be enough to turn things around. Sprint faces significant challenges, including integrating Nextel’s network and repairing its poor customer service image. What’s more, it is bleeding customers — the company reported that it lost 683,000 subscribers in the fourth quarter.
“Our business is not performing well right now because we have not provided the right customer experience,” Hesse said Thursday. According to the CEO, a turnaround will not happen “for many quarters.”
Sprint must first fix customer service issueS by bringing in qualified agents not seat fillers which is the practice of the call center located in Charlotte, NC. Second Sprint may want to sell off Next and focus on there core wireless service and its coverage ability. Third a reiteration of the first suggestion bring in a outside call quality group to monitor the actions of its agents who have no clue of what the company focus should be, exceptional service and product satisfaction
I had been waiting to bail-out once my contract ends in July but MAY reconsider. I admit it would be nice to have one flat bill per month - no fluctuating bills per month…. there is the pesky little problem of poor coverage and lots of dropped calls ;\
When my data service no longer worked due to a move into rural Ohio, I called to cancel that portion of service on the expiration date of the contract. Sprint customer service agent ‘Bobbie’ told me since I was a day past the billing period there would be a two hundered dollar fee for cancelling. Sprint lost all fourty of our corporate cell/data accounts in the next week as we moved the numbers to other carriers. Nice job Sprint!
I have been a Sprint customer for over 7 yrs and have seen some major improvements over that time. The 2 features that keep me with Sprint are the mobile to mobile and the 6 or 7 pm start time for nights and weekends. I have the family plan and so far have no real complaints. Customer service has been so-so. Depending on the day or time it can be good or horrible. I don’t see myself leaving Sprint just yet and have even talked friends into joining either Sprint or Nextel so that we can talk and not use any minutes. I just wish they had better coverage between Danville, VA and Richmond, VA on 360 and 58.
I paid the $300 fee to get out of my Sprint contract because the service was so bad and customer service was non-existent. When I cancelled the service I told the rep I was surprised after SEVEN years of being a customer that my complaints of lousy equipment and poor reception were not addressed. The rep’s comments was that Sprint had lot of other customers and was the leading service provider. Ummm, I guess losing a few customers does matter after all. No complaints with the competitor I went with.
Kelly, Baton Rouge you are correct I’m in Florida and have the Nextel service also and ever since sprint purchase Nextel the service has SUCK!!!!! You call them and get the run around am at the point now that I just want to close my account with them and move to Verizon or AT&T.
I’m very glad to see Sprint is acknowleding that they have a problem with providing customer service. That is the one thing I hate about having their service. The question is, what are they going to do to fix it? I have not had a problem with the reliability of the service or features. But call in and 1. you may or may not get someone who speaks English, and 2. you can speak to 3 different people and get 3 different answers. Its is extremely frustrating.
The fact that Sprint is struggling is a credit to capitalism! Anyone who’s ever dealt with their customer service and paid hundreds of dollars in cancellation fees for terrible service and broken promises should applaud. I might suggest that rather than trying to turn it around, Sprint should free up the bandwidth for the competitors!
Am I the only Nextel customer who wishes Sprint would admit it’s mistake and sell Nextel. Nextel was known for it’s network reliability (within coverage range) and excellent customer service until Sprint acquired it. It seems selling Nextel could be a win-win for both. Sprint gets cash for it’s turn-around strategy, and Nextel gets a chance to recapture it’s niche, reputation, and autonomy.
Three months ago I received a fourteen page billing statement from Sprint. I have two phones and get basic phone and texting service. The bill was so confusing I couldn’t understand how to read it. I called the customer service phone line and even the Sprint staff couldn’t explain how to read their bill. I don’t know why a bill can’t be on one page. It is clear that no one seems to care about anything working well at Sprint. It seems so simple how you can solve your problems–keep it simple and provide reasonable customer service. Why is this so difficult for Sprint to understand?
Oops. I meant to say Dan Hesse is left with building this company up.
I believe that their should be some sort of an investigation from the SEC in part to Nextel (before merging with Sprint) paying off extreme dollar amounts to so call affiliates that cost Sprint billions of dollars which could have helped the company’s books. The whole Nextel deal was horrible, obviously, however I also questioned why Sprint was so chummy with trying to appease so many executives at Nextel. When one company swallows another, all the appeasement is out the door. You do what is best for the share holders. Gary Forsee ran this remarkable company to the ground and now Gary Foresee is left with building a company up. Sprint needs to get back to their beginnings. The dime line advertising in the late 80’s early 90’s, was “simple” compared to the over confusing discounts and “family and friends” offerings. What made people sprint to Sprint was this David vs Goliath type advertising. Sprint has totally lost focus with consumers and just needs to regain consumer trust. If Sprint wants to win and gain in this market place, they need to make EVERYTHING Simple. A lot of marketing in the wireless world is totally confusing and consumers know it, just no one really talks about it. Sprint can win, and a lot of people are championing them to win. Make Sprint hip and young, attack T-Mobiles marketing towards the youth, and Attack Verizon and AT&T’s market of young to old adults by just making contracts clear, and advertising simple.
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Sprint is the WORST Company of modern times.