DOW JONES NEWSWIRES
Sprint Nextel Corp. (S) expanded its Boost Mobile $50 monthly
plan to include prepaid customers on its CDMA network as the
struggling wireless carrier continues to seek growth in the low
end.
UNLTD By Boost customers, who use the same network as core
Sprint subscribers, will see their bills cut by up to $20 a month.
Roaming charges and regional restrictions, made popular by rivals
Leap Wireless International Inc. (LEAP) and MetroPCS Communications
Inc. (PCS) and offered in 13 states, will also be eliminated.
Previously, Boost offered the $50 plan to customers on the
Nextel network, which uses different technology than the Sprint
side. The cheaper offering was designed to spur growth and fill
extra network capacity on Nextel.
"Our primary focus is to grow Boost Mobile on the Nextel
National Network," said Boost Mobile President Matt Carter while
saying the business also wanted to acknowledge its customers on the
Sprint network.
Sprint last week agreed to pay up to $5 billion over the next
seven years to L.M. Ericsson Telephone Co. (ERIC), turning over
day-to-day operations of its network to the Swedish telecom company
so it can focus on new devices and customer retention. Quarterly
subscriber losses have been near 1 million for more than a
year.
Sprint shares recently were up 1.2% at $4.35. The stock has more
than doubled in 2009 but remains down over 47% from a year ago.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com