$5 international calling plan from MetroPCS. International calling has always been an expensive endeavor, with calls costing anywhere from two cents to two dollars per minute plus normal airtime rates. Metro’s new plan demolishes all of those per-minute restrictions. It sounds a bit too good to be true, of course, but there seems to be little tangible evidence that would lead to doubt. Still, something seems fishy, and Justin Brennan, business director for Boost Mobile, thinks that there’s something else going on with the offering. Specifically, he doesn’t understand how Metro can find a profit at such a low price point, when there is literally no limit on how much customers can use the service.
“Anything can be profitable depending on the usage. They’re obviously taking a bet on the usage. … They’re betting customers won’t use it very much.” “We really have seen some seemingly impossible offers like this come from MetroPCS before and what happens is they disappear very quickly, which make it seem that it is too good to be true.”It’s unclear what programs Brennan refers to specifically, but it could be Metro’s recent $3 unlimited plan to Mexico, which excludes calls to cell phones. That provision, however, was noted at the time of announcement. There isn’t necessarily the same type of restriction with the new $5 offering. Customers are encouraged to look up numbers if they are uncertain if the plan covers their calls. What’s strange about this criticism is that we’ve heard similar claims from other carriers about Boost’s own unlimited plan. Notably, Verizon CEO Ivan Seidenberg claimed that Boost’s plan would cause Sprint to “eventually self-destruct.”. Now it seems Boost is lobbing similar charges at another carrier. MetroPCS is a publicly-traded company, and was actually recently added to the S&P 500 last week. If something is awry with this offering, we should find out soon enough.]]>