Sprint (S) Introduces New, Cheaper 'Framily Plan'

NEW YORK (TheStreet) -- Sprint (S) announced a new type of wireless plan on Tuesday that becomes cheaper the more friends that customers convince to sign with the carrier.

Sprint gained 0.1% to $9.87 in after hours trading.

The new plan, called the Spring Framily Plan, cuts the cost of the monthly bill for individual customers when they sign onto the service as a group. The Sprint Framily Plan lets customers sign up with as many as nine friends or family members.

Unlike a traditional family plan, the Framily plan bills each line directly. Monthly plans start at $55 for individual users with unlimited talk, text, and 1GB of data usage. For every friend on the same plan the price goes down by $5, with a maximum discount of $30. So with six friends on the plan, each person only pays $25 per month for service.

For an extra $20 a month per line customers can upgrade to unlimited data, and be eligible for a phone upgrade every year instead of every two years.

Sprint will start offering the Framily Plan on Jan. 10. In a press release Sprint CEO Dan Hesse said the new plan "redefines the way we think of family plans and gives our customers the power to decide who will be a part of their group and gain greater savings as more members are added."

The new plans could potentially help Sprint sign up more customers, or may help make phone plans cheaper for those already on the network.

S Chart S data by YCharts

More from Markets

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Street Stats: The Mid-Term Elections May Be a Rollercoaster Ride for Investors

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves