Expect Sprint to Lower Prices After 4G LTE Upgrade is Finished

Sprint CEO Dan Hesse is watching the price wars in mobile from the outside as he hasn’t been able to compete in the latest round of price reductions being led by T-Mobile.

“We’re balancing strength of the network versus how quickly we have to move,” he said in a CNET interview.

The challenge the company faces is stock analysts say their valuation is high and if they lower prices without getting a large number of new customers, they end up hurting themselves from an earnings perspective.

Here is a good excerpt from an article worth reading on CNET:

The reintroduction of the 30-day guarantee, which Hesse announced last month, is one of the ways Sprint is trying to change its reputation. The announcement came just a week after T-Mobile launched its own Test Drive program.

In markets where Sprint Spark — the company’s name for its enhanced LTE service — is available, the connection is actually pretty fast. The problem is there are only 27 markets able to get Spark.

A big priority in the marketing will be getting people to understand the improvements to the network, Hesse said. But he acknowledged that there remains a lot of work with the upgrades.

Bottom line: When the network is ready – in other words more competitive with other providers on a nationwide basis, expect the company to more aggressively compete for new customers through lower pricing. Until then, Sprint is in a tough situation. That is, until the potential merger with T-Mobile which could take place in one month from tomorrow.

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