Sprint Corp. has blinked.
The company ended its $70-a-month unlimited service plan and replaced it with a $80 promotion, in a sign that the wireless industry might have found its price floor.
Starting Tuesday, with the debut of a new TV ad staring David Beckham, Sprint is offering consumers an $80 “All In” pricing plan that includes $20 lease payments on a handset and $60 for unlimited text, phone and data services. The offer expires August 6.
Sprint, which has lost subscribers for seven straight years, has become one of the most aggressive price cutters with promos like “cut your bill in half.” Such efforts spearheaded by Chief Executive Officer Marcelo Claure helped Sprint add customers in the first quarter.
Still the No. 3 U.S. wireless carrier, Sprint is struggling to make network enhancements and improve service quality for users. These upgrade costs have raised questions about the company’s finances. Sprint reported $914 million in negative cash flow in its fiscal fourth quarter ended March 31.
Sprint’s new $80 plan is still lower than T-Mobile US Inc.’s comparable offering. T-Mobile, the fourth-largest carrier, sells leases on iPhones and unlimited service for $95 a month.
“When consumers ask carriers what their all-in price is, it will be apparent Sprint offers the best value,” Kevin Crull, Sprint’s chief marketing officer, said in an interview.