There is no doubt that Sprint (NYSE: S) has had trouble keeping up with the competition over the past few years. Since the end of 2013, the company’s stock has dropped from a high ten dollars to a high two dollars. Today, the stock is right around $6 having sell 1.50% during Friday’s trading period. Nonetheless, the company has managed to mount somewhat of a comeback recently. Sprint surprised analysts with better than expected earnings for the last quarter and the surprise send the stock soaring. The big determining factor for Sprint was the company’s decision to offer major discounts to attract new customers and it paid off immensely.
Today, the company has decided to move forward with yet another discount, which they hope will push their subscriber count even higher. The company will now provide consumers with the opportunity to sign up for a totally unlimited plan for just $100 a month. The $100 a month package will include unlimited talk, text, and data. On top of it all, the plan will include two lines, with additional lines costing just $30 extra dollars a month.
And, Sprint has decided to accommodate single individuals as well. The company will provide unlimited access to 4G LTE data, talk, and text for a single line for a monthly cost of just $60. T-Mobile (NASDAQ: TMUS) recently made a similar announcement of their own. T-Mobile’s service is slightly more expensive for a single customer. A single line will cost $70 a month, with an additional line totaling $50 a month. There are a few other differences as well. Those that intend to utilize their smartphone as a hotspot will be forced to pay extra with T-Mobile. With Sprint, this feature is entirely free.
Overall, Sprint’s deal is certainly a little better than T-Mobile, but there is a slight flaw with both. In order to reap the savings, consumers will need to give up their access to HD quality streaming video. If you’re find with SD content, these packages are certainly well worth it. Will the price war and Sprint’s minute discount give the company the ability to beat back the competition? Only time will tell, but Sprint may very well be on a road towards recovery.