Feature Article

May 08, 2014

Boost Mobile Launches Three New Monthly Unlimited Select Plans

The telecom industry is undergoing a round of mergers and acquisitions in virtually every market around the world. Companies are looking for M&A opportunities to acquire new customers and reduce operating costs in an industry where profit margins have been declining for the past 10 years.

This decline was caused by the introduction of smart mobile devices, which has dramatically altered revenue-generating services that telecoms relied on in the past. One example is WhatsApp, and the estimated $39 billion it is taking away in revenues related to SMS from operators. As consumers move from voice to data, telecoms are offering all inclusive plans that are more affordable.

Boost Mobile is the latest company to offer a promotion with three new monthly unlimited select plans. The company is one of Sprint’s prepaid brands offering wireless phones and services, no long-term contracts, and no activation or long-distance fees.

The new plans start at $40 a month with unlimited talk, text and data rates that are affordable. Although the company states the plans are unlimited, it doesn't apply to high-speed data. The three-tier are as follows:

  • A $40 service with any Boost phone, unlimited talk and text, 500MB of high speed 3G/4G data
  • A $50 service with any Boost phone, unlimited talk and text, 2.5GB of high speed 3G/4G data
  • A $60 service with any Boost phone, unlimited talk and text, 5GB of high speed 3G/4G data

In addition to this new promotion, existing Shrinkage customers will be grandfathered, allowing them to continue earning “tokens” for on-time payments, or they can switch to the MUS plan and start off as low as $40/month. Another promotion gives new customers and the person that referred them to Boost Mobile an account credit of $25, up to a maximum of $500 per calendar year.

These measures might sound extreme, but they are essential if these companies want to stay alive, which also explains why profit margins are getting lower. Companies are under pressure to deliver from stockholders and other investors, and as more M&A take place in 2014, let us hope consumers will continue to get more service at lower price point, even though there will be fewer companies offering the services.

“We understand that customers don't want a 'one size fits all' plan because everyone's usage and needs are different. These three plans represent competitive offers that simply add more value. This new initiative reflects what we hear our customers want: straightforward, value-oriented options that provide more or less data depending on their individual needs,” said Sprint Prepaid Group President Dow Draper said in a statement. 

Edited by Alisen Downey

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