Will CDMA unlimited increase Boost's subscribers?
Boost Mobil announced last week that they’d offer service over Sprint’s CDMA network, it sounded like the move would increase their reach. The Nextel iDEN network, while nationwide, has its flaws, and the move to the more reliable, faster CDMA network could expand Boost’s appeal. Not everyone agrees, though, that the move will benefit Sprint. As Phil Goldstein at FierceWireless writes, at least one analyst believes that the new service will do nothing to increase Boost’s value to its parent company, Sprint, in 2010. The analyst, Walter Piecyk of Pali Research, raises two points about the new Boost service. The first involves level of coverage and pricing. The second is a bit more complicated an issue, relating to the ability of Sprint customers to take their handset to Boost. To quote Piecyk:
“Sprint shut off roaming onto Verizon’s network for these (new) phones, and the price of the phones is well above what prepaid customers are used to paying.”The first part of that sentence misunderstands the issue. Sprint didn’t shut off roaming on the Verizon network. Rather, it doesn’t let any of its prepaid services to utilize its roaming agreements. This is standard fare in the MVNO industry. This case is a bit different, of course, since Sprint owns Boost. But to be clear, Sprint did not shut off coverage. It just applied consistent rules to all prepaid services running on its network. Second, the pricing isn’t any more outrageous than the current Boost lineup. What Piecyk refers to, I assume, is the BlackBerry Curve 8330, which will cost $249. That handset might be pricey, but the other two handsets Sprint will initially offer, the Sanyos 3810 and Incognito, fall right into line with Boost’s iDEN handset pricing. I don’t think that it will turn off anyone who wouldn’t be anyway. The second point deals with a customer’s inability to take her Sprint phone and activate it with Boost Mobile.
“Consumer advocate groups could easily find a Sprint postpaid customer that either bought full price for their phone or are past the contract period and want to take advantage of the Boost Unlimited rate plan. The customer owns the device, why should they have to buy a new one to get the cheaper rate plan? This would clearly be a difficult question to answer in front of a congressional committee.”This certainly raises a good question, one that Boost will eventually have to address. They already did, saying that they’re looking for ways to “provide greater flexibility for customer migrations.” That’s just corporate speak, of course, but it’s possible that after weighing the issue carefully, Sprint will eventually allow it for customers whose contracts have already expired. Piecyk predicted a decline in Sprint’s prepaid subscriber numbers in 2010, and the opening of the CDMA network to Boost subscribers does not change that for him. As it stands, I beg to differ. Boost faces so many issues with the iDEN network — not the least of which being delayed or undelivered text messages — so a switch to CDMA could help. There are obstacles, but I think they’re small enough to overcome. ]]>
Boost cdma shrank from 1 million to 300,000 in one year. I’m really surprised that Sprint decided to revive cdma (which I always felt was the superior value of the two Boosts).
I predict several things this year.
Boost walkie/talkie iden will continue its growth but it will slow down as Tracfone with Straight Talk and New Net10 Unlimited will be Boost/Sprint’s number one competitor in the unlimited market.
There will be chronic confusion about the two Boost brands about things like coverage, phone interchangeability , etc.
Sprint will probably make a move to kill unofficial Byod on Boost cdma along with what they did with Liberty Wireless, one of their cdma mvnos.
The Blackberry plan will be extremely popular with cost conscious business users but there will be complaints about it being overpriced for the phone and not having other options will be an issue with some.
Virgin Mobile will NOT be merged with Boost cdma but continue on its own. It will languish for a few more months while Sprint focuses on developing Boost cdma. VM will then finally get a big push around summer time. After it’s lost a couple hundred thousand more users due to lack of more aggressively priced plans and new phones.
Sprint prepaid will have another good two quarters but the postpaid side will continue to shed users.
What do you mean when you say, ” Sprint didn’t shut off roaming on the Verizon network. Rather, it doesn’t let any of its prepaid services to utilize its roaming agreements. This is standard fare in the MVNO industry”?
I thought Boost Mobile did have roaming… are you saying that it doesn’t?
Boost mobile, does not, and did not ever have roaming available with its plans. The IDEN network utilizes the Nextel network, and the new Boost CDMA phones utilize Sprint’s network. Though both are Sprint they are separate networks, which is also why IDEN phones have the push to talk feature only available on the Nextel network. My feeling is even if Sprint decides not to let people with existing Sprint equipment migrate with it to Boost, there will be a mass exidus from Sprint to Boost. The 99 dollar unlimited plan with Sprint (nearly 110 with fees and tax added in) is not competative in todays market. When you can pay 50 dollars a month total for a service that does pretty much the same thing with a cdma phone from Boost, why would you stay with a conventional Sprint plan? The cost of the phone (depending on the model) can be made up for in from 1 – 4 months, and then you have yourself a savings of approx. $720, (60 savings x 12 months), each and every year going forward. As far as im concerned, its a no brainer.
You need to understand something. Boost on CDMA does not roam off the Sprint network. That’s why it’s only $50.00/month for unlimited everything and no contract. Spring postpaid DOES roam on other networks and that’s why it costs $110/month. If you don’t need the coverage go with Boost, if your phone HAS to work everywhere then you need Sprint. It’s EASY to compare coverage areas, just visit the respective websites.
i am a boost cutomer i have the blackberry 8330 and the phone is not over priced at all and i would buy it again if i had to the only thing i have a problem with is the fact you cant insure your phone you lose it its gone thats that i would love to get the new i1 motorola but for 350 i need some insurence i have no problem with the network i get reception in places where others dont so im good paying 60$ flat rate at the cost of a phone
Spint needs understand this. People in Construction or Field work need the Push to Talk feature (Direct Connect). It does not matter what they network they use. Boost has become popular with my industry because of three things. Cheep Phones, ease of replacement, and inexpensive service. I have personnaly replaced my cell oost phone five times in two years due the type of hazards I work in. I do not have time to go to a Sprint Store for repair or insurance/rebate. I simply dash into Walmart buy a new cheep phone switch the Sim, or call in the id of the phone. I have done this five times in under a half an hour. If Sprint thinks they are losing customer now, lose the direct connect and watch them go bankrut, for most people in construction industry will not spend the money on the expensive Sprint service and phones.
be careful. Nextel use is an OSHA violation in many construction cases.General use is great. Just don’t use to tag or when a delay could cause an accident.
My Boost Mobile BlackBerry Curve 8530 is great on Sprint’s CDMA network. Better Blackberry then the 8330.
The WiFi is great.
Anything is better then the iDEN network