In the rapidly escalating cell phone price war, T-Mobile US has come up with a new strategic plan which offers a $200 credit to Sprint users that switch to T-Mobile.
The volley follows half the price of Sprint’s offer that has
been extended to include all the T-Mobile, Verizon, and AT&T customers this
holiday season. Surprisingly, it is the half-off deal a year ago which targeted
only Verizon and AT&T subscribers. After T-Mobile unveiled its “Binge On”
feature, Sprint launched the ‘half-off’ pitch that allowed users to stream
video from different services without running down T-Mobile’s data allowance
plan for one month.
T-Mobile chief executive John Legere pitched the targeted $200
offer with Sprint’s performance. I cannot think of any wireless customers in
more desperate need of some holiday cheer than those Sprint customers still
hanging on over there,” he said in a company release. “Those poor people have
put up with the nation’s slowest and smallest LTE network, and their career
throwing out a deal-of-the-month for everyone except them.”
Despite trailing its four major competitors, Sprint has made
convincing gains last year declaring that it topped Verizon and AT&T in
ratings by Nielsen. Such deviated bidding for holiday shoppers is the major
reason many wireless customers have started to shop for new smartphones and
carriers during the past few months.
In addition, this new T-Mobile $200 offer applies to any
Virgin Mobile, Sprint, or Boost customer that qualifies for a Simple Choice
postpaid plan. Postpaid wireless users are permitted to pass a credit check and
yield higher revenues than prepaid wireless users who pay for the service
before using it.
An announcement from T-Mobile has stated that the $200 offer
requires all the three carriers’ customers to surrender a phone. However, the
subscribers need to pay an early termination fee to entice rivals’ customers to
switch.
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