Sprint has been in a year long marketing battle with AT&T and Verizon, culminating with Sprint’s offer to cut rate plans in half for any customers that switch over from its two competitors. While analysts worried that Sprint was dipping way too deep into the coffers for this marketing ploy, the telecom company has stepped up its game even further and added T-Mobile to the list of qualifying competitors for the half-off discount.
The deal is simple, at least on the surface. Customers from T-Mobile, AT&T or Verizon can switch services to a Sprint package and get half off of their monthly data – based on what they were paying before. The deal also includes per-line discounts to make switching costs easier to deal with. Those savings stay in place “until 2018” which could mean a number of things, but seems to indicate this will last a bit longer than the customary year-long deal. Customers have the option to switch from now until early 2016, when the deal ends.
Why only include T-Mobile for this phase of the marketing plan, instead of in the earlier attack on AT&T and Verizon? Sprint has been feeling a lot of pressure from T-Mobile lately, which has grown in popularity and overtaken Sprint as the third most popular phone service provider. Firmly in fourth place, Sprint is targeting its cell phone competitors fiercely to try to make up lost ground in the mobile phone space.
While it may seem extreme, this deal is one of the few chances Sprint has left to prove that it’s still a telecom giant and not doomed to increased security. Other methods to soothe investors include plans to cut its own spending dramatically in 2016, getting rid of more than $2 billion in costs. That makes us wonder where those costs will come from, because Sprint certainly isn’t backing down from high marketing costs.
If you like the idea of low bills but Sprint’s service makes you a bit nervous, you can try the service on your mobile phone and still have time to back down before the contract becomes permanent.