Sprint's (S) unlimited "for life" data plans that start at $80 per month, unveiled on Thursday, add to pressure on the nation's two biggest wireless firms, Verizon Wireless and AT&T (T), but may not draw a competitive response, says Nomura.
Sprint guaranteed that its customers could keep unlimited plans as long as they have active accounts amid speculation over what new marketing strategies the company would take following its acquisition by Japan-based SoftBank.
Sprint has offered unlimited data services for a flat monthly fee. AT&T and Verizon, co-owned by Verizon Communications (VZ) and Vodafone (VOD), sell data buckets that cap usage and bill extra if customers go over their limit.
T-Mobile USA (TMUS) on Wednesday announced. Its "Jump" service plan makes it easier for existing customers to upgrade mobile phones. AT&T and Verizon have stiffened their upgrade policies in order to reduce phone subsidy costs.
AT&T and Verizon are unlikely to respond to Sprint's new data plan, says Nomura analyst Mike McCormack, because Sprint's plan targets individual users, not families with multi-line accounts.
"While we view (Sprint's plan) as incrementally more aggressive, we are unsure if this dramatically moves the needle on industry competition," McCormack wrote. "Multi-line family and corporate plans are by far the majority of Verizon and AT&T's customer base. With so few addressable customers, we don't see Verizon and AT&T reacting, particularly with superior network attributes."
Verizon Wireless and AT&T have larger 4G LTE wireless data networks than Sprint.
Sprint guaranteed that its customers could keep unlimited plans as long as they have active accounts amid speculation over what new marketing strategies the company would take following its acquisition by Japan-based SoftBank.
Sprint has offered unlimited data services for a flat monthly fee. AT&T and Verizon, co-owned by Verizon Communications (VZ) and Vodafone (VOD), sell data buckets that cap usage and bill extra if customers go over their limit.
T-Mobile USA (TMUS) on Wednesday announced. Its "Jump" service plan makes it easier for existing customers to upgrade mobile phones. AT&T and Verizon have stiffened their upgrade policies in order to reduce phone subsidy costs.
AT&T and Verizon are unlikely to respond to Sprint's new data plan, says Nomura analyst Mike McCormack, because Sprint's plan targets individual users, not families with multi-line accounts.
"While we view (Sprint's plan) as incrementally more aggressive, we are unsure if this dramatically moves the needle on industry competition," McCormack wrote. "Multi-line family and corporate plans are by far the majority of Verizon and AT&T's customer base. With so few addressable customers, we don't see Verizon and AT&T reacting, particularly with superior network attributes."
Verizon Wireless and AT&T have larger 4G LTE wireless data networks than Sprint.