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Sprint's "Simply Everything" Plan: The War is On

Posted by: Olga Kharif on February 28

The move wireless industry has feared just took place. Today, Sprint Nextel announced its “Simply Everything” plan, which, for $100 a month, offers users unlimited access to voice, the Web, e-mail, texting, Sprint TV and other services.

The move is a response to the announcements by Verizon Wireless, AT&T and T-Mobile USA last week of $100-a-month unlimited calling plans. T-Mobile’s plan also included unlimited messaging. But none of these carriers offer as much for $100 as Sprint.

While this is great news for consumers, Sprint’s new plan spells trouble for the wireless industry. Clearly, price competition is on. Now, Verizon, AT&T and T-Mobile will have to offer a lower-priced plan, too. After that, perhaps, one or the other of them will lower prices again, in an attempt to steal others’ customers. The other carriers will follow suit. The likely result: Industry’s revenues and profits will plummet, big time. And Sprint, already struggling financially, may end up struggling even more.

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Reader Comments

AV

February 29, 2008 04:14 AM

At least state the underlying counterpoint: Competition is never bad for the customer.

I guess your premise is that competition *does* hurt the customer if price wars push companies into un-viable business models. I'm definitely willing to wait to see!

T

February 29, 2008 03:34 PM

Price might be an attraction. I stick with ATT regardless just because everyone else I know are on it. FYI, I work for Tmobile. We have great plan and customer service. But bottomline, consumer will pay the extra for other things.

Ranbir

March 3, 2008 04:05 PM

What is so wonderful about Sprint's new offering? Just the fact that it lowers somewhat the exorbitant prices that our wireless cos. charge. If, in India, the cost of wireless charges is about 2.5 cents per minute and the margin is about 0.8 cents, why can't our companies match that? For $100.00
We should get approximately 67 hours of peak voice calls per month. Does adding other services really justify raising the cost by so much?

austin

March 4, 2008 09:55 PM

i work for sprint, i believe the simply everything is what exactly will put it on the map. sprint has a bad wrap. things are starting to change though. the calls are THROUGH THE ROOF FOR THE SIMPLY EVERYTHING PLAN!!!

donn

March 9, 2008 12:55 AM

i work for sprint as well and ist the best plan that any any carrier coul offer

Luke

March 9, 2008 01:29 PM

This is great news for all wireless consumers and here is why...Tmobile, AT&T and Verizon will have to match this plan so that they do not lose their customers. Every body knows that Sprint is not long for this world, they simply have not been able to put out a reliable product for so long and let's not even talk about their "Customer No Srvice"! This will mean that subscribers of all other carriers who are enjoying their services will be soon paying less!

Melissa

March 19, 2008 02:01 PM

Go Sprint! Sprint has awesome devices and I've noticed a BIG difference in customer service the few times I've called. The devices they have are actually FAR better than those of other carriers and the network surpasses all others. I can't even remember the last time I had a call drop. I've got friends that have t-mobile and Verizon...they are NOT happy and all are switching to Sprint! To "T" listed in these comments...it makes no difference whether everyone you know is on the same carrier as you when you use Sprint's Everything plan...IT'S COVERED! Sprint is really making a difference in this industry and the other carriers need to take note as Sprint will be in the #1 spot soon!

ken

August 25, 2008 09:00 AM

I have been with Verizon for 8 years, but will switch to Sprint. This deal is simply too good to pass up.

Lance Green

December 13, 2008 12:08 AM

Been with Verizon too long.....switching to Sprint immediately now that the contract is over.

Jesse

December 22, 2008 04:10 PM

t-mobiloe has terrible coverage in the midwest

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BusinessWeek writers Peter Burrows, Cliff Edwards, Steve Hamm, Rob Hof, Olga Kharif, Steve Wildstrom, Aaron Ricadela, Douglas MacMillan, and Spencer Ante dig behind the headlines to analyze what’s really happening throughout the world of technology. One of the first mainstream media tech blogs, Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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