Sprint, Mired in Fourth Place, Is Cutting Data Prices Againby
New offer boosts data allotment 50% on some wireless plans
Escalating price battle aimed at luring customers from rivals
Sprint Corp. is cutting prices and increasing data allotments as part of a new shared wireless service offering, the latest attempt by the struggling No. 4 U.S. carrier to lure customers away from larger rivals and spark turnaround efforts.
For example, subscribers can get 3 gigabytes of shared data for $30 when the plans take effect Friday. That’s a 50 percent data-allotment increase compared with a previous $30-a-month, 2-gigabyte plan. Customers opting for a new $100-a-month 40-gigabyte plan will pay $20 less than Sprint’s previous offer. These prices don’t include a $20-a-month fee for each line.
Sprint, which has booked more than seven years of losses, has been the most aggressive price cutter among the four nationwide carriers, offering promotions such as $1 iPhones and charging customers half the cost of their bills with other carriers. The price cuts highlight a go-for-broke strategy by Chief Executive Officer Marcelo Claure, who is trying to cut $2.5 billion in costs, improve the network and add customers in a maturing wireless market.
Sprint shares fell as much as 3.3 percent to $2.89 in New York. The stock has dropped 17 percent this year through Wednesday, compared with a 5.7 percent drop by the S&P 500 Index.