This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sprint Woos iPhone 5 Buyers With Unlimited Plans Despite LTE Disadvantage

NEW YORK ( Trefis) -- With the iPhone 5 is likely to be launched this fall, the carriers are getting ready to market their services.

One key factor that we believe will differentiate this generation of the iPhone from the previous ones, apart from a possible change in form-factor and better processor, is the availability of an LTE-compatible chipset.

While carriers such as Verizon (VZ) and AT&T (T) are getting ready to tout their respective LTE networks, late-entrant Sprint (S) just started to roll out its first LTE markets this week.

Its marketing strategy will most likely remain unchanged from the last year when it aggressively promoted its unlimited plans. But is it going to be a big deterrent for Sprint to move more iPhones out of the door in order to meet its huge commitment to Apple (AAPL)?

We don't think so and here's why. (See our complete analysis of Sprint here .)

Unlimited Plans Still Valuable

One of the major reasons why we think Sprint's strategy will work is because unlimited plans are as important today as they were a year ago -- possibly, even more when you consider that Verizon and AT&T are distancing themselves from unlimited plans further.

Both stopped offering unlimited plans to new subscribers a year back, and now Verizon has stopped its grandfathered unlimited users from availing handset subsidies if they choose to keep their plans. (See Verizon's Share Everything Plans Could Kill The Last Unlimited Plans .)

It is likely that AT&T, having made its displeasure with unlimited plans clear on many occasions, will also come up with similar ways of discouraging usage of unlimited plans as it looks to follow in Verizon's footsteps and promote tiered data plans that can be shared across devices soon.

Also, unlimited plans will be more valuable for LTE than they were for 3G since LTE is a higher-speed technology and will easily cause subscribers to overshoot their monthly quota for tiered plans. In such a scenario, Sprint will remain the only national carrier to offer truly unlimited plans (T-Mobile throttles 3G speeds after a certain limit), which it can still use as a very effective ploy to lure subscribers away from the two larger carriers.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 -2.67%
FB $104.07 -5.81%
GOOG $683.57 -3.45%
TSLA $162.60 -7.26%
YHOO $27.97 -4.05%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs