Sprint hasn’t been doing super hot lately, and today the big yellow carrier reported a near $800 million loss for the second quarter of Sprint’s fiscal 2014. Sprint CEO Marcelo Claure laid out four areas on which he’ll focus on to improve Sprint in the future, but those aren’t the only steps that Claure may take to give Sprint a boost.
Sprint CEO Marcelo Claure says that he’s considering getting rid of device subsidies in 2015. Sprint’s been focusing heavily on its Sprint Easy Pay and iPhone for Life/Sprint lease programs lately, and Sprint CFO Joe Euteneuer said that Sprint’s decision to eliminate subsidies will depend on how those leasing programs do with customers in the near future. “As we get to mid year, then we'll have more visibility if Marcelo wants to go all in," Euteneuer explained.
The U.S. wireless industry has been focusing less on subsidies and two-year contracts lately, with AT&T, Sprint, T-Mobile and Verizon all promoting their installment offerings like AT&T Next, T-Mobile JUMP and Verizon Edge. T-Mobile recently did away with subsidies and contracts completely, and if Sprint decides to follow suit and axe subsidies and possibly offer lower rate plans as well, it could be a shakeup that gets many U.S. consumers to give Sprint another look.
Would you be interested din checking out Sprint if it eliminated device subsidies?