T-MobileUS and Sprint battle it out for 3rd place
Sprint, seemingly bitter over their failed acquisition of T-MobileUS, has just announced a new pricing strategy to rival the Magenta carrier, giving unlimited talk, text, and data for just $60 a month. They’re also quick to point out that this is $20 less than T-Mobile’s unlimited plan. This announcement comes at the heels of T-Mobile’s new program which offers a year of free unlimited data to anyone who makes the switch from Sprint (also AT&T or Verizon), as well as any current subscriber who brings anyone over. It looks like T-Mobile might be a little bitter too, as this new plan is a direct attack at Sprint, but apparently Sprint is ready to stop taking the hits and throw some punches of their own.
Up until a couple weeks ago, everyone was clamoring over the rumored merger between Sprint and T-Mobile. With the former having backed out, now it’s up to each respective company to take on the likes of AT&T and Verizon on their own… but not without a little bloodbath between them first.
The nation’s 4th largest carrier, T-MobileUS, has been making all the right moves since CEO John Legere stepped up to the plate, buying MetroPCS, putting more effort into expanding and improving their network, and starting a price war with its Uncarrier initiative that has essentially begun pressuring other bigger carriers to rethink their own price structures. During this time, T-Mobile managed to add more than 4 million subscribers, surpassing Sprint as the 3rd largest smartphone retailer and claiming the top spot for pre-paid customers.
Sprint, on the other hand, has been trying to play catch-up. They were purchased by Japanese corporation Softbank, mainly to help alleviate much of the debt Sprint had rung up, only recently have they managed to make a modest profit of $23million compared to last year’s $1.6billion dollar loss, and they just replaced their former CEO, Daniel R. Hesse, with the founder of Brightstar, Marcelo Claure, in order to help turn things around. And it looks like they’ll need it in order to keep their spot as the 3rd largest US carrier in terms of subscriber base, as John Legere is pretty adamant on his position to beat out Sprint. “I predict we’ll overtake Sprint in total customers by the end of this year.” he says. “Not someday. Not next year. This year Americans are voting with their feet, and they’re joining this Un-carrier revolution by the millions.” His words may hold some merit, as T-Mobile has just passed over 50.5 million subscribers, while Sprint is holding on to around 53million.
What do you think of Sprint and T-Mobile’s new offerings? Who do you see winning this price battle?