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Sprint to deliver another major blow on mobile price war?

by Leo Blanco on Feb 21, 2008 at 10:11 AM

SPRINT NEXTEL

The mobile plans war is getting more exciting every single day. After Verizon Wireless, T-Mobile and AT&T announced their flat-rate calling plans for $99.99 per month, there are speculations that Sprint Nextel will offer its own unlimited plan at 40% lower or $60 per month.

It’s a very surprising move knowing that this struggling mobile operator recently announced its Unlimited Access Pack for $119 per month. Though there is still no official announcement about this move, analysts speculate Sprint will go for a $60 to $80 monthly plan.

Though many customers are delighted about this discounted rates, Wall Street is worried this will spur deeper price cuts and competitive counterattacks, which might prove detrimental to the business in the long run.

Analysts are divided whether AT&T and Verizon Wireless will respond to this speculated flat-rate calling plans. Some see this will hurt their customer growth and revenue while others believe these players will eventually be forced to compete to protect their business.

Read [Reuters]

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