Sprint (S) Lowers Monthly Rates, Stock Plunges

Sprint (S) stock is declining after the company announced monthly rates for new customers that are half the price of its competitor’s rates.
By Amanda Gomez ,

NEW YORK (TheStreet) -- Sprint Corp. (S) - Get Report stock is retreating 7.84% to $4.05 in afternoon trading on Wednesday after the company announced it will launch new customer rates that are half of what its competitors are offering.

New customers switching from T-Mobile (TMUS), Verizon Communications (VZ) and AT&T (T) will be eligible for the half-off rates from November 20 to January 7.

Existing Sprint customers can also switch to the new prices during the holidays, but exact details were not disclosed.

The move is similar to a promotion launched in December 2014 that was targeted towards Verizon and AT&T customers.

"We are so confident that customers will have an amazing experience that we are encouraging them to give us a try with the biggest wireless offer in the history of our industry," CEO Marcelo Claure said in a statement.

The new promotion comes less than month after the wireless carrier said it will cut costs by $2.5 billion in fiscal 2016, Reuters reported.

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