Friday, September 02, 2005

Sprint Nextel Combines Plan Features

Sprint Nextel announced today it was combining rate plan features and adding new ones to keep customers from both networks happy. In Reuters Charles Golvin at Forrester Research said "One of the biggest issues right now for Sprint Nextel is customer retention and making sure existing customers are happy and want to stick with them."

Some new plan features are free incoming calls for Sprint users and more flexible pricing options for Nextel users going over their alotted minutes. Unlimited calling between Sprint and Nextel customers will be a $5 option.

Golvin commented that "free incoming calls is unusual in the U.S. market and could help Sprint to stand out." However he noted "it is hard for a wireless company to distinguish itself through pricing as it is hard for consumers to compare different operators' complex rate options."

Wireless Week reports Sprint Nextel will match Verizon's price drop for its EV-DO data networkof $59.99 per month for customers with a voice plan who sign up by Oct. 31. According to the article the offer includes a free EV-DO card and customers must sign a two-year contract.

Roger Entner at Ovum thought Sprint was smart to offer a free EV-DO card and match Verizon's price. "Sprint wants as many people on EV-DO as quickly as possible," he said.

I have to concur because Sprint is lowering the barrier to entry by throwing in a free EV-DO card for laptop users while Verizon charges an extra $100. Still pricey but at least more bearable for the primary enterprise audience. It'll be interesting to see how they price their all-you-can-eat data plans when they roll out EV-DO handsets...