By Teresa von Fuchs
Wednesday, September 19, 2007
Sprint Nextel is looking into expanding its test of an unlimited calling plan that directly competes with smaller rivals Leap Wireless and MetroPCS. CEO Gary Forsee reportedly told a Goldman Sachs investor conference today that he had been initially concerned that the new service would hurt growth of contract customers, but he has become optimistic about the value of the carrier's no contract plan.
Sprint launched its no contract, unlimited service under the brand name Boost Mobile earlier this year in markets already covered by regional carriers, Leap Wireless and MetroPCS. The carrier's possible plans to expand the Boost trial to new markets could continue to put pressure on smaller, no contract carriers.
In its efforts to expand its customer base, MetroPCS recently made a bid for Leap Wireless, which the latter rejected. But analysts have long speculated the two will eventually merge.
In his meeting with investors, Forsee reportedly addressed the combined carriers merger, saying, "The fact they're coming together I don't think made that much of a difference."
In other MetroPCS news, the carrier expanded its coverage area today by an estimated 11 million people, launching services in greater Los Angeles. There are still some major holes in its coverage area of the city, including Beverly Hills and Santa Monica, but the carrier said it plans to expand its services in the area by the end of the year.