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Monday, May 04, 2009

Sprint Subscriber Base May Be shifting to Boost Mobile Prepaid

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An evaporating subscriber base forced Sprint (NYSE:S) to take drastic cost-cutting measures, and the telecom giant is expected to outsource management of its mobile towers to Ericsson.

Sprint hasn't disclosed whether or not this move will hinder expansion plans for its 4G network. A section of today's edition of the Wall Street Journal caught my eye- the rising popularity of Sprint's pre-paid plans.


The Overland Park, Kan., company, which reports earnings Monday, is expected to say it lost more than one million contract customers in the first quarter, though some analysts expect solid gains in less profitable subscribers who prepay for service.

The prepaid division, Boost Mobile,  has received mixed reviews for its edgy commercials  in the "unwronged" series, including the man baby ad that ends with the "breast milk" comment. Prepaid plans were viewed as outdated, but now as more families are forced to live on fixed incomes, it's easy to see why a pre-paid plan would become much more appealing.

Perhaps you're one of the many customers who have made the switch. Have economic conditions forced you consider a prepaid plan?

*Update: Boost Mobile Credited for Sprint Nextel Profit in 1st Quarter

By Matt O'Hern at 09:24 AM | Comments (0)

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