Sprint News: Also Ditching Contracts & Softbank Pours $73 Million Into Sprint's Coffers

[dgstorm]

Here's a Sprint double header for you guys today. First, It looks like Sprint is following in the footsteps of T-Mobile and Verizon by dumping contract plans. The company will transition towards selling smartphones at full price via a leasing business model. This was revealed by Sprint CEO Marcelo Claure during a recent interview. No clear details on these plans have been revealed yet.

The second Sprint news is that Softbank has reaffirmed their confidence in the weakening Now Network. They just bought an additional 16.8 million shares of Sprint which dumped $73 Million into Sprint's coffers to help shore up its finances. This immediately lead to a big stock market bump for the now fourth place US carrier, and brings Softbank up to an 80% Sprint stock shareholder level. Shares of both companies are up, with Sprint seeing the biggest gain of 44% over a the last month.

What do you think Sprint's chances of regaining the number three spot are?

Source: WSJ

 

[Jonny Kansas]

Sprint's coverage has never been good in either of the 2 main areas I've lived in my lifetime. They are in the same boat as T-mobile imo. They both need to build out beyond big cities and work towards matching the coverage offered by the other 2. With all of the uncarrier stuff T-mo keeps pushing out, it'll be an uphill climb for Sprint to regain traction, but I wouldn't count them out at this point in the game.

 

[Ollie]

Sprint is on a two year plan to roll out thousands of micro cells to broaden their coverage. I think I read it was supposed to be around 70,000 micros which will make it interesting to see if the hardware they use can even be manufactured that quickly.

 

[jackiescivic]

Please stop saying Verizon stopped contracts. They are very much available, just not advertised!

Sent from my Verizon G4

 

[Ollie]

Please stop saying Verizon stopped contracts. They are very much available, just not advertised!

Sent from my Verizon G4

Tmobile still has them as well. They just don't call them "contracts" anymore lol

 

[jackiescivic]

Tmobile still has them as well. They just don't call them "contracts" anymore lol

While installments are very similar as a contract, they are entirely different. Contract = subsidized phone price and locked to a carrier for 2 years. Installment = loan paid back to carrier interest free, typically over 24 months but no service cancellation fees, and more freedom to get another phone sooner.
Verizon never said they were getting rid of contracts, the media went with it because contracts are not advertised anywhere.
Just in case you weren't being sarcastic ;-)

Sent from my Verizon G4

 

[Ollie]

While installments are very similar as a contract, they are entirely different. Contract = subsidized phone price and locked to a carrier for 2 years. Installment = loan paid back to carrier interest free, typically over 24 months but no service cancellation fees, and more freedom to get another phone sooner.
Verizon never said they were getting rid of contracts, the media went with it because contracts are not advertised anywhere.
Just in case you weren't being sarcastic ;-)

Sent from my Verizon G4

No ma'am, no sarcasm at all! The only difference between what Tmobile calls contract free and being under contract is wording.

If you don't have your own phone then you are agreeing to a contract. Like you mentioned they just make you pay off your EIP (Equipment Installment Plan) instead of an ETF. If you join their Jump plans you are locked in for at least 18 months.

So you have to either buy outright like I did or honor your contract.