So three of the four major carriers in the US have announced unlimited voice plans for $100 and everyone is waiting to see what Sprint does. Don’t expect them to announce a $100 voice plan though, thinks UBS analyst John Hodulik. It’s going to be much cheaper than that if Sprint really wants to compete with the big dogs and gain some customers.
But how much lower will or can they go?
“Additional downside in the shares likely exists if Sprint launches an unlimited plan for $60 per month — a real possibility given the current state of competition,” Hodulik wrote in a research note.
Bear Stearns analyst Phil Cusick says Verizon and AT&T may have to cut their plans by even more to stay competitive.
If Sprint charges $75 a month for unlimited calls, it would only gain a slight edge over rivals, Cusick said.
“If instead Sprint prices closer to $60 for unlimited voice, that would create much more marketing stir and be a real differentiator, but would risk an eventual response from competitors,” he said.