Sprint Corporation (NYSE:S)’s CEO Marcelo Claure announced on Monday at an employee’s event that the wireless giant will soon be replacing “Framily” with a new package that will offer 20 GB data and ten wireless lines for a monthly expenditure of $100. By taking this step Sprint will surpass its competitor T-Mobile US Inc. (NYSE:TMUS) that offers 10 GB data with just 4 wireless lines. This new sales pitch is likely to be named as “Sprint Family Share Pack”.
At Monday’s event, the recently hired CEO Claure said that to ensure a happier customer base Sprint Corporation (NYSE:S) is not only reducing prices but is also offering more – almost double as compared to its competitors. The promotional packages for the new plan will be put on sale from the 22nd August and will remain on the shelves till 30th September this year.
An announcement that would trigger a new price war among the competitors was long expected from Sprint Corporation (NYSE:S) and it was finally made public on Monday. Moreover Claure made it clear during the event that this was only the first of many more changes to come.
This new venture is an attempt to attract more customers and encourage them to switch from their current service to Sprint. That is why the new package is replete with features of deals that are offered by other bigger players in the niche. According to Claure, Sprint Corporation (NYSE:S) will double its high-speed data while its price will remain either at par or lower than what is being offered by its competitors, namely Verizon and AT&T.
It appears that discounts that were so hard to earn through Framily will now be readily available to customers. Since the strategic plan behind Framily made it very difficult for its consumers to enjoy rewards, it would be discotinued from Friday onwards.
Sprint Corporation (NYSE:S) took a dip in stock value by 4.1% ($5.39) when the New York market closed on Tuesday. Jefferies & Co.,’s Mike McCormack also reduced Sprint’s price target by taking it down from $7 to $4.
Even though the stock market is not looking good for Sprint Corporation (NYSE:S) at the moment, Wells Fargo & Co’s Jennifer Fritzsche believes that Sprint has all the basics to improve and is on its way to progress. SoftBank with an 80% ownership in Sprint is also backing Claure and his efforts.
This article has been written by Myra Rahmani, edited by Vinita Basu.