Sprint launches cheap wireless plan, with added catch

Sprint-Nextel recently introduced new wireless prepaid plans that provide unlimited texting and data access for customers seeking mobile service without a two-year contract.

The “Beyond Talk” plan is available starting at $25 per month without a two-year contract, but it comes with a major catch all interested subscribers should know about.  First, “Beyond Talk” subscribers have to buy a phone from Sprint at full price, so all qualifying phones are unsubsidized.

Second, users have just 300 anytime minutes, and then users will have to pay penalties and additional charges to chat more.

Image courtesy of CNN

Sprint plans to market the new service under the Virgin Mobile brand, which the company acquired to help increase its userbase.

The Beyond Talk plan seems to be ideal for customers over a longer duration, but isn’t ideal for short-term customers who rely on voice services more than data and texting.  The lack of minutes — and penalty for more than 350 minutes used — and unsubsidized phone cost drive some users away from a decent long-term plan.

Sprint’s rivals charge around $90 per month for a similar plan that requires a two-year contract agreement.

Last September, Sprint introduced the “Simply Everything” plan that offers unlimited mobile-to-mobile calls, unlimited text and data, and 450 minutes for mobile phones to landlines.

Sprint has had trouble keeping wireless subscribers as they leave for Verizon Wireless, AT&T, and other alternatives.  Over the past three years, Sprint has lost more than 6 million paid subscribers, with that number increasing further.

I expect to see Sprint continue to struggle moving forward, especially considering that manufacturers are more likely to offer phones for AT&T and VZW.  Even if this offering won’t keep Sprint afloat, it could still force other providers to offer another prepaid wireless plan — Verizon and AT&T would rather lock consumers into a two-year contract, but also have introduced prepaid accounts.