Posted by: Olga Kharif on February 6, 2009
I just spoke with Matt Carter, president of Boost Mobile, about Boost Unlimited, a $50 a month prepaid monthly plan that launched in January. The plan includes unlimited calling, text messaging, wireless Web, and walkie talkie service. When it launched, some analysts feared the plan could encourage some postpaid customers of Sprint Nextel, whose network Boost uses, to switch to Boost for a cheaper service.
Well, that’s not happening. Carter tells me that, so far, “we haven’t seen the cannibalization coming from the Sprint side.” That — even though Boost Unlimites is sold through Sprint’s own stores as well as retailers like Wal-mart. And yet, Carter says plenty of postpaid subscribers are switching to Unlimited. Where are they coming from? T-Mobile USA.
That shouldn’t come as a surprise: Last year, Boost had changed its focus to address much broader demographics, which mirrors, in many ways, that of T-Mobile. Whereas Boost originally appealed to 14 to 24 year-olds, it now serves 18 to 34 year-old value consumers. And, especially in this economy, many of these users want to be able to avoid signing a long-term contract and to save a buck. While Carter won’t provide any numbers, he says Boost Unlimited has done well in its first two weeks. “We’ve been very pleased,” he says.