Back to top

Analyst Blog

Zacks Equity Research

Sprint Offers Free Service to Students

S AAPL BBY VZ

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Sprint Corporation (S - Analyst Report) will offer free services to students in the U.S. as part of it promotional strategy to capture more market share. The company, in collaboration with Best Buy (BBY - Analyst Report), is offering free network service for up to one year to high school and college students. Sprint is expected to gain this strategy that will likely increase its smartphone sales and capture the untapped market of students unable to afford other services.

To avail the new promotional offer, students have to buy phones at the student activated price and sign up for free services including unlimited talk, text and 1GB of data on smartphones. In addition, students can avail unlimited data services for just $10 a month, excluding additional charges. These offers are available at all Best Buy and Best Buy Mobile stores.

We believe that the new promotional strategy will add to the company’s subsidy burden, already heavy with Apple Inc.’s (AAPL - Analyst Report) iPhone subsidy. Simultaneously, it ensures a meaningful revenue stream in the future. As the technology progresses, it will attract more teenagers toward usage of data services and that would also entail increased penetration of smartphones. Since Sprint is already making efforts to tap this market through its lucrative offers, it will try to lead this target market with an array of customized and affordable services.

Sprint is also focusing on revenue growth in its core platform business. Sprint’s multi-brand like Boost Mobile, Assurance Wireless and Virgin Mobile as well as innovative offers like $50 Monthly Unlimited plan with Shrinkage, Beyond Talk and Broadband2Go are contributing significantly to subscriber growth.

In the third quarter, Sprint registered growth in its service revenues thanks to the introduction of new pricing plans such as Unlimited, My Way and My All-In plans that include unlimited talk, text and data. In addition, the company has also gained from its plan, Sprint One Up, which offers unlimited talk, text and data along with smartphone upgrade every 12 months.

Sprint, which operates with mega carriers like Verizon Communications Inc. (VZ - Analyst Report), has a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%