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Sprint (S) Unlimited Data to Cost Less: Will Investors Gain?
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U.S. national wireless carrier Sprint Corp. (S - Free Report) is sure to leave a mark on the booming wireless industry. The company recently announced a price cut for its unlimited data plans. As per the latest offering, Sprint is offering a single line with unlimited data, calls and text for $50 a month.
The price will be $80 for two lines, $100 for three lines and $120 for four. This implies $30 per line for a family of four, which when compared to Verizon Communications Inc.’s (VZ - Free Report) plans for $45 per month per line for a family of four, looks cheaper. So, there’s an exact saving of $720 in the first year with Sprint.
If we take into account the other key carriers, Sprints’ unlimited data plan is cheaper. T-Mobile US’ (TMUS - Free Report) unlimited plan starts at $70 per month for a single line, $100 for two, $140 for three and $160 for four. AT&T Inc.'s (T - Free Report) unlimited plan starts at $100 a month, but it doesn’t include monthly taxes and fees, which raises the final cost. Verizon and AT&T do not include those fees in their advertised rates either, but T-Mobile does.
Sprint’s Enticing Offers
This is one of Sprint’s continued efforts to lure customers from rival carriers by offering attractive promotional plans and lucrative discounts. However, such plans lead to a high cash burn rate and heavy losses for the company.
Last month, Sprint promoted its unlimited data plans by offering its customers DISH Network Corp.’s Sling TV service free of cost, if customers add four or more lines on its Unlimited Freedom plan, to new and existing Sprint customers in Atlanta and Chicago.
Another promotional move is Sprint’s recent decision to sell LG G6 (in two color options – Ice Platinum and Black) devices, both online and in stores, starting Friday, Apr 7. We believe Sprint’s Unlimited offering goes well with the sale of LG G6 version, as it should complement each other.
Bottom Line
With the vast application of sophisticated smartphones, innovative apps and growing popularity of social media, wireless customers obviously are in need of unlimited data plans.
Meanwhile, Sprint’s high-band spectrum and network capacity seem to be best suited for high speed data. Hence, Sprint is at an advantage, fulfilling customers’ increasing demand for data now and well into the future. However, there is an underlying doubt on how many people will actually be willing/interested to switch to Sprint’s unlimited offers just to save a few dollars. Customers have voiced their opinion that price is not the only driving factor behind their wireless carrier choices.
We look forward to seeing which among these four carriers’ unlimited offerings gain popularity and succeeds to lure the maximum number of subscribers in the wireless industry. Notably, over the past three months, Sprint lost 3.6%, while the Zacks-categorized Wireless National industry declined 1.3%
Latest News from Wireless Industry
As an add-on, leading cable MSO (multi service operator) and media and entertainment firm in U.S., Comcast Corp. (CMCSA - Free Report) unveiled its wireless service with an unlimited data plan. Investors are naturally excited as Comcast is the first major U.S. cable provider to enter the highly competitive wireless market. We believe, this venture into the wireless space will enable Comcast to have a platform for expanding its Internet TV service, add more services and reduce customer churn.
Charter Communications also plans to launch a wireless service in 2018.
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
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Sprint (S) Unlimited Data to Cost Less: Will Investors Gain?
U.S. national wireless carrier Sprint Corp. (S - Free Report) is sure to leave a mark on the booming wireless industry. The company recently announced a price cut for its unlimited data plans. As per the latest offering, Sprint is offering a single line with unlimited data, calls and text for $50 a month.
The price will be $80 for two lines, $100 for three lines and $120 for four. This implies $30 per line for a family of four, which when compared to Verizon Communications Inc.’s (VZ - Free Report) plans for $45 per month per line for a family of four, looks cheaper. So, there’s an exact saving of $720 in the first year with Sprint.
If we take into account the other key carriers, Sprints’ unlimited data plan is cheaper. T-Mobile US’ (TMUS - Free Report) unlimited plan starts at $70 per month for a single line, $100 for two, $140 for three and $160 for four. AT&T Inc.'s (T - Free Report) unlimited plan starts at $100 a month, but it doesn’t include monthly taxes and fees, which raises the final cost. Verizon and AT&T do not include those fees in their advertised rates either, but T-Mobile does.
Sprint’s Enticing Offers
This is one of Sprint’s continued efforts to lure customers from rival carriers by offering attractive promotional plans and lucrative discounts. However, such plans lead to a high cash burn rate and heavy losses for the company.
Last month, Sprint promoted its unlimited data plans by offering its customers DISH Network Corp.’s Sling TV service free of cost, if customers add four or more lines on its Unlimited Freedom plan, to new and existing Sprint customers in Atlanta and Chicago.
Another promotional move is Sprint’s recent decision to sell LG G6 (in two color options – Ice Platinum and Black) devices, both online and in stores, starting Friday, Apr 7. We believe Sprint’s Unlimited offering goes well with the sale of LG G6 version, as it should complement each other.
Bottom Line
With the vast application of sophisticated smartphones, innovative apps and growing popularity of social media, wireless customers obviously are in need of unlimited data plans.
Meanwhile, Sprint’s high-band spectrum and network capacity seem to be best suited for high speed data. Hence, Sprint is at an advantage, fulfilling customers’ increasing demand for data now and well into the future. However, there is an underlying doubt on how many people will actually be willing/interested to switch to Sprint’s unlimited offers just to save a few dollars. Customers have voiced their opinion that price is not the only driving factor behind their wireless carrier choices.
We look forward to seeing which among these four carriers’ unlimited offerings gain popularity and succeeds to lure the maximum number of subscribers in the wireless industry. Notably, over the past three months, Sprint lost 3.6%, while the Zacks-categorized Wireless National industry declined 1.3%
Latest News from Wireless Industry
As an add-on, leading cable MSO (multi service operator) and media and entertainment firm in U.S., Comcast Corp. (CMCSA - Free Report) unveiled its wireless service with an unlimited data plan. Investors are naturally excited as Comcast is the first major U.S. cable provider to enter the highly competitive wireless market. We believe, this venture into the wireless space will enable Comcast to have a platform for expanding its Internet TV service, add more services and reduce customer churn.
Charter Communications also plans to launch a wireless service in 2018.
Sprint currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>