Sprint to end 2 Year Contracts

[dkyeager]

The leaked document says EXISTING customers can get 2 year contracts on a "reactive basis" only.

What does this mean?

 

I pay $200 for 4 smartphones for UNLIMITED everything. I can not for the life of me see any non 2 year plan that comes close.

Currently it costs me:

200 x 24 monthly plan

200 x 4 4 upgrades

39 x 4 4 activations

5,600 4 year total

That's 58.33 per month per device for UNLIMITED

Figure a typical payment to purchase is $35 my plan portion is just $23/month.

So just how are one of the new plans suppose to be better for me?

I don't see it.

J

As of this morning (Saturday) I can still add a line to my account with a 2 year contract. 

Fingers crossed.

 

Reactive means you must ask for it.  

[schmidtj]

Excellent.

Thanks much.

J

[WiWavelength]

Reactive means you must ask for it.  

 

It probably means that -- to an extent.  "Reactive" is the opposite of "proactive," so Sprint employees no longer will be allowed to promote or suggest two year contract renewals with subsidized upgrades.  Instead, existing subs will have to request them -- at which point, Sprint can react.  That does not mean those requests will be approved.  Expect that Sprint will tell some accounts that their options going forward are to remain month to month on their legacy plans with no further subsidized upgrades or to switch to current plans with Easy Pay, lease, or BYOD.

 

AJ

[WiWavelength]

So just how are one of the new plans suppose to be better for me?

 

Maybe I will go back and crunch some alternative numbers for you.

 

But the point is not that the new plans are supposed to be better for you.  The new plans are supposed to be better for Sprint.  If demand increases or costs increase, prices go up or amenities get cut.  Those are just economic facts of life.

 

Let us apply a variation on the oft used "all you can eat" buffet analogy.  If you are one of many patron who take advantage and eat far more than the average patron -- especially if you eat far more of the premium items on the buffet -- or additionally if you always use a coupon for a discount -- then you should not be surprised when the restaurant raises prices, limits some of the premium items, or drops certain items.  Cause and effect.

 

The hard truth is that Sprint does not want to continue -- or even cannot afford to continue -- legacy plans with both "unlimited" data and subsidized upgrades.  Choose the former but lose the latter.

 

Many of the legacy plans were set up during the days of the EV-DO data network.  "Unlimited" data did not have the ramifications that it does today, tomorrow, next year with ever increasing usage or even abuse.  Sprint has to invest CAPEX in its network to try to keep up with some of the ridiculous data demands.

 

Not only were many of the legacy plans predicated on EV-DO but also many predate the "everyone needs a smartphone" era.  That is at least a double whammy for Sprint.  "Unlimited" data took into account lower usage on feature phones.  And subsidy took into account lower subsidized costs on feature phones.

 

Now, everyone wants a $700 smartphone that many think costs $200-300 -- because of hidden subsidy.  I see that you list yourself as an iPhone user.  If you want to save money, maybe you should get off that grossly overpriced iPhone train.  Flagship caliber Android handsets for BYOD on Sprint now can be purchased outright for as little as $300.  Then, the math for the new plans may work in your favor.  This is especially true if you are not a heavy "unlimited" data user.  You can reduce your plan costs to a lower data tier.

 

AJ

[dkyeager]

It probably means that -- to an extent.  "Reactive" is the opposite of "proactive," so Sprint employees no longer will be allowed to promote or suggest two year contract renewals with subsidized upgrades.  Instead, existing subs will have to request them -- at which point, Sprint can react.  That does not mean those requests will be approved.  Expect that Sprint will tell some accounts that their options going forward are to remain month to month on their legacy plans with no further subsidized upgrades or to switch to current plans with Easy Pay, lease, or BYOD.

 

AJ

 

My info was multiple sourced so I feel confident at this time that it is true in my market. 

 

Now, there are plenty of ways for Sprint to make life difficult in this area, but Sprint has determined it is not in their interest to kill it now for existing customers.

[travismheim]

I don't like price increases (in any form) any more than anyone else. However how do some of you expect to continually pay the same price year after year for wireless service? My taxes go up, my insurance premiums go up, my TV and internet all go up in price every few years. Food, transportation, entertainment, everything eventually goes up so why would wireless service be any different?

 

I'm grateful Sprint allows us to hang onto our legacy plans at legacy rates, but when that comes to an end I'll just accept it like I do everything else.

 

Sent from my Nexus 5 using Tapatalk

[mrjeff]

Were you a Sprint employee?  Did you know a Sprint employee?  Did you "legitimately" know Russ?

 

A decade ago when SERO started, I was kind of a big deal on HowardForums.  I knew about SERO and could have jumped on it, but I did not.  You want to know why?  Because I have an ethical backbone.  I had no legitimate connection to the Sprint Employee Referral Offer.

 

If you did or did not have a legitimate connection, that is up to you -- and your conscience.

 

AJ

 

 

Russ openly invited people to use him as a referral, provided updates to the sero plans and also answered questions regarding the plans on his blog.

 

http://mcguireslaw.com/category/sero/

[WiWavelength]

Russ openly invited people to use him as a referral, provided updates to the sero plans and also answered questions regarding the plans on his blog.

 

http://mcguireslaw.com/category/sero/

 

How does that make it right?  How are double secret discount plans for some random people for no legitimate reason proper?  And please show that Sprint signed off on Russ sponsoring SERO for any Joe Blow, that Sprint did not just look the other way, that Sprint was not just incompetent.

 

AJ

[mrjeff]

How does that make it right?  How are double secret discount plans for some random people for no legitimate reason proper?  And please show that Sprint signed off on Russ sponsoring SERO for any Joe Blow, that Sprint did not just look the other way, that Sprint was not just incompetent.

 

AJ

 

Companies may sometimes have secret menu's or friends and family type sales.  This was really no different.  See Sprint's print from 2006 below where they opened SERO to general public: 

 

http://a676.g.akamaitech.net/f/676/773/60m/images.delivery.net/cm50content/1529/09008101806249a7/FriendsAndFamily.jpg

 

Russ was also the Vice President of Strategy for Sprint and in his FAQ states that he was able to provide referrals through his blog. An email for users to use was also posted on the front page of the Sprint community website around the same time IIRC. 

[WiWavelength]

Companies may sometimes have secret menu's or friends and family type sales.  This was really no different.  See Sprint's print from 2006 below where they opened SERO to general public: 

 

http://a676.g.akamaitech.net/f/676/773/60m/images.delivery.net/cm50content/1529/09008101806249a7/FriendsAndFamily.jpg

 

Russ was also the Vice President of Strategy for Sprint and in his FAQ states that he was able to provide referrals through his blog. An email for users to use was also posted on the front page of the Sprint community website around the same time IIRC. 

 

All good and well, yet that barely addresses any of my questions or requests.  But I will elaborate more in the light of day.

 

AJ

[irev210]

How does that make it right?  How are double secret discount plans for some random people for no legitimate reason proper?  And please show that Sprint signed off on Russ sponsoring SERO for any Joe Blow, that Sprint did not just look the other way, that Sprint was not just incompetent.

 

All good and well, yet that barely addresses any of my questions or requests.  But I will elaborate more in the light of day.

 

AJ

 

It's like when any company offers the "friends and family" rate to everyone or an expanded pool of people as a promotion.  You obviously disagree with it, perhaps you look at the name of the promotion and can't move past the name of the promotion.

 

Ford has done it, GM has done it, many other companies have done it.

 

Some advertise it heavily, others don't.

 

Regardless of the name, as it has been rehashed a number of times, it was open to everyone, legitimately, by the VP of Strategy and by other marketing efforts by Sprint (such as Sprint creating savings@sprint.com and savings@sprintemi.com to work at www.sprint.com/sero).  That's my opinion anyway.  I am not calling anyone any names with my opinion and my supporting evidence to back it up.

 

And lastly, it's not for you to decide who is eligible for a Sprint program.  Sprint is, and so is the VP of Strategy, and so is their marketing team.

 

While I don't really care if you disagree with that, I do take issue with you getting nasty, getting all high and mighty "having an ethical backbone" surmising that those that took the offer don't, etc.

 

So, please, have your opinion, but please be respectful of other opinions and don't make broad accusations based on things you don't fully understand (as you mentioned, you don't work at Sprint and you have no idea about SERO, just an opinion).  This is normally a friendly place but essentially calling SERO customers "fraudsters" is uncalled for in my opinion.

 

Why you continue to rant on about this is beyond me.  Move on...  or don't, it doesn't matter, just be polite and respectful.

[MacinJosh]

I should point something out that might add to this, it might not. When I applied for a job at my local Sprint at Radio Shack back in December, I got an email upon enrollment to the application site from the Talent Community saying welcome and here is access to the Sprint Employees Referring Customers private store. Frankly, you don't even have to apply for a job to get this email offer, so Sprint is still very open to referral plans, which isn't such a detriment anymore, but still shows their willingness for employees to refer people.

[WiWavelength]

While I don't really care if you disagree with that, I do take issue with you getting nasty, getting all high and mighty "having an ethical backbone" surmising that those that took the offer don't, etc.

 

So, please, have your opinion, but please be respectful of other opinions and don't make broad accusations based on things you don't fully understand (as you mentioned, you don't work at Sprint and you have no idea about SERO, just an opinion).  This is normally a friendly place but essentially calling SERO customers "fraudsters" is uncalled for in my opinion.

 

When have I been "nasty"?  In my post that you quoted, I primarily asked probing questions.  Geez, it feels like some people just cannot accept assertive opinions that run counter to their own.  Should we always be nice and deferential to each other here at S4GRU?  That would be a facade and would not lead to productive discourse.

 

My dislike of SERO basically boils down to three things.  Whether intentional or not, SERO became distorted from its original purpose.  If intentional, then it feels unfair that SERO was not outwardly marketed to all new and existing subs -- encourage everyone to have SERO.  Finally, many SERO subs can be irksome in their demands and/or threats to leave.  They want their cheap plan with "unlimited" data and subsidized upgrades -- or else!  But the funny part is that if they leave, they cannot get both "unlimited" data and subsidized upgrades anywhere else.

 

AJ

[irev210]

When have I been "nasty"?  In my post that you quoted, I primarily asked probing questions.  Geez, it feels like some people just cannot accept assertive opinions that run counter to their own.  Should we always be nice and deferential to each other here at S4GRU?  That would be a facade and would not lead to productive discourse.

 

 

Calling "Practically all SERO subs... frauds" is definitely being nasty in my book.

 

I don't think we always need to be nice - we've had many productive discussions over the years by disagreeing over various things... but I've never called you a fraud either.

 

I'll leave it at that - I got no qualms with having a good discussion or disagreeing with you but calling SERO customers frauds is where I'll say that was out of line.

[WiWavelength]

Calling "Practically all SERO subs... frauds" is definitely being nasty in my book.

 

Well, I will qualify that by saying the bulk of my experience with SERO was when I was one of the most prominent posters in the Sprint section at HowardForums a decade ago.  And there was a lot of activity with members hunting and pecking for Sprint e-mail addresses that would work for SERO activations.  One e-mail address would stop working for SERO activations, so they would go and find another, then another, etc.  I do consider those SERO activations "frauds."  They violated the spirit of the Sprint Employee Referral Offer.

 

AJ

[Ascertion]

Well, I will qualify that by saying the bulk of my experience with SERO was when I was one of the most prominent posters in the Sprint section at HowardForums a decade ago.  And there was a lot of activity with members hunting and pecking for Sprint e-mail addresses that would work for SERO activations.  One e-mail address would stop working for SERO activations, so they would go and find another, then another, etc.  I do consider those SERO activations "frauds."  They violated the spirit of the Sprint Employee Referral Offer.

 

AJ

By that logic, Framily should technically be in the same category.  As the offer was originally created for friends and family, not some dude on /r/SprintFramily.

[WiWavelength]

By that logic, Framily should technically be in the same category.  As the offer was originally created for friends and family, not some dude on /r/SprintFramily.

 

I agree to an extent.  However, the logic is not all the same.  Key differences arise.

 

Sprint openly marketed Framily to everyone.  For a time, it was the promoted plan.

 

No, you were not required to be friends or family to join Framily.  That is simply not true.  Sprint had no way of adequately assessing that.

 

Framily actually made some business sense, since it encouraged numerous subs to stay bonded together to retain their discounts.  That helped discourage churn across blocks of up to 10 subs.  An intriguing approach.

 

In the end, though, how long did Framily last?  Compared to SERO, not long at all.

 

AJ

[WiWavelength]

A few seemed vexed that this thread seemingly went off on a SERO tangent.  However, SERO, like all contract subsidy plans, is relevant to this thread.  

 

Everyone on two year contracts, including SERO, should be prepared for the future -- Sprint will join the rest of the big four in eliminating subsidized upgrades, offering only leasing, financing, full price purchase, or BYOD.  And I am sorry, but I do not buy into locally sourced info that two year contracts will remain available much longer.  

 

Though that may pain subs who are on inexpensive "unlimited" data plans with subsidized upgrades, those plans have become out of step with present day supply and demand cost structures.  Some will cry about their loyalty to Sprint and threaten to leave Sprint if subsidized upgrades go away.

 

Yet, if those on contract subsidy plans want both "unlimited" data and subsidized upgrades, they cannot get both from the other operators.  They would leave Sprint primarily out of spite.  That would be a juvenile and potentially counterproductive response.  But, well, plenty of subs leave VZW, AT&T, and T-Mobile every day out of spite.  So, Sprint would be no different in that regard.

 

AJ

[spotmeterf64]

A few seemed vexed that this thread seemingly went off on a SERO tangent.  However, SERO, like all contract subsidy plans, is relevant to this thread.  

 

Everyone on two year contracts, including SERO, should be prepared for the future -- Sprint will join the rest of the big four in eliminating subsidized upgrades, offering only leasing, financing, full price purchase, or BYOD.  And I am sorry, but I do not buy into locally sourced info that two year contracts will remain available much longer.  

 

Though that may pain subs who are on inexpensive "unlimited" data plans with subsidized upgrades, those plans have become out of step with present day supply and demand cost structures.  Some will cry about their loyalty to Sprint and threaten to leave Sprint if subsidized upgrades go away.

 

Yet, if those on contract subsidy plans want both "unlimited" data and subsidized upgrades, they cannot get both from the other operators.  They would leave Sprint primarily out of spite.  That would be a juvenile and potentially counterproductive response.  But, well, plenty of subs leave VZW, AT&T, and T-Mobile every day out of spite.  So, Sprint would be no different in that regard.

 

AJ

 

I agree - subsidized upgrades will be a thing of the past by the end of 2016, for everyone on every carrier: new customer and existing.

 

I lived through Network Vision, and all I got was this lousy t-shirt a price hike.

Edited January 13, 2016 by spotmeterf64

[WiWavelength]

I agree - subsidized upgrades will be a thing of the past by the end of 2016, for everyone on every carrier: new customer and existing.

 

I lived through Network Vision, and all I got was this lousy t-shirt a price hike.

 

What did you expect?  Sprint completes a multi billion dollar, total network overhaul, is struggling financially, and is going to maintain legacy plan status quo as a goodwill gesture?

 

With only EV-DO, before WiMAX, with WiMAX, during Network Vision, no matter, Sprint always has worked well here for me.  However, if living through Network Vision was that troublesome for you, then you should have left Sprint some time ago.  The only person responsible for that is yourself.  But maybe you stuck around for the grandfathered "unlimited" data.

 

Well, a few years ago, "unlimited" data meant something on the order of 5-10 GB of usage.  That was a lot.  Now, it often means 25 GB, 50 GB, 100 GB or more of usage.  Somebody has to pay the freight.  And if Sprint is not going to force "unlimited" data users off of their contract subsidy legacy plans to higher priced "unlimited" data plans or tiered data plans, then something has to give.  That something seems to be subsidized upgrades.

 

You can view that as a "price hike," a price stasis, or a price cut -- it depends upon your individual situation.  If you are willing to get out of the grossly overpriced handset racket and not push the "unlimited" data envelope, you can get your price stasis or even price cut with a brand new, mid range to high end handset and a sensible data tier.

 

AJ

[spotmeterf64]

I'd love to get out of the overpriced handset racket, but for better for worse I am an iPhone user, and we all know Apple will never cut the price of the iPhone. They'd stop making phones before they do that. Too much pride for their premium status.

 

I have considered moving to a metered plan, or moving away from iPhone, or switching to a prepaid MVNO that offers lower prices per month. i have not yet decided what I will do to help make my bill around the same as I pay now. I'm really just collecting information now in preparation for the day subsidies die for good (that day isn't here just yet).

[irev210]

I'd love to get out of the overpriced handset racket, but for better for worse I am an iPhone user, and we all know Apple will never cut the price of the iPhone. They'd stop making phones before they do that. Too much pride for their premium status.

 

I have considered moving to a metered plan, or moving away from iPhone, or switching to a prepaid MVNO that offers lower prices per month. i have not yet decided what I will do to help make my bill around the same as I pay now. I'm really just collecting information now in preparation for the day subsidies die for good (that day isn't here just yet).

 

Actually, iPhone has seen a number of price cuts.  Just yesterday, Virgin and Boost lowered the price of the iPhone 5s to 149 - I attribute apple being a bit more aggressive as a result of the no-subsidy movement.

http://www.virginmobileusa.com/shop/cell-phones/iphone5s-gray-phone/features/

 

 

At the end of the day, getting rid bundled services adds price transparency to customers.  I like the fact that manufacturers (google/apple specifically) are creating single devices that work on all four major carriers in the US and offer 0% financing directly, allowing the customer to bypass the carrier completely, freeing them from long-term commitments.

In the long-term, this will make carriers complete on service/price vs. just attempting to tie down a customer due to a contract.

[Jones]

I agree, carrier agnostic phones give us more freedom and force more competition from service providers.

[spotmeterf64]

The Virgin and Boost iPhone 5s is not unlocked I'd bet - and can't be put on Sprint postpaid or any other carrier. Or can it?

 

I was mostly talking about the price for their new phone - the 6s, for example, may be on sale for $1 at Best Buy for a new 2 year agreement, but the $649 full price is never discounted that I've seen. Maybe with the death of contracts, we'll see the full price discounted now.

[Madfelon]

This is just a non issue. Just purchase the phone full price (Apple.com) and keep the legacy plan. I will never give up my ED 1500 with unlimited for my three lines. I save a ton of money compared to the new pricing plus I use so much data I need this plan to last.