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Sprint Unveils New "Framily" Plans

Tue, 01/07/2014 - 4:26pm
Andrew Berg

Sprint CEO Dan HesseDan Hesse Tuesday took the wraps off what Sprint is calling “Framily” plans, which allows customers to add up to 10 members to one account. 

Hesse made the comments during a CITI investor conference. He said the new plans will start at $55 for unlimited talk, text and 1GB of data. From there, the plans decrease as more individuals are added to the plan, eventually dropping to $25 per month when a single plan hits 7 devices. Because each account can be billed separately, customers can choose who is in their group.

According to a press release, all members of the group can customize their plan to meet their unique needs. For only $20 per month per line, Framily members can buy up to unlimited data plus get a new phone every year. Plan members can share the savings, without the hassle of sharing a bill. Each account can be billed separately. 

“Framily plans allow people to decide who’s in your family,” Hesse said. 

The Sprint Framily Plans will be available in Sprint company-owned stores and Sprint third-party dealers beginning Friday, Jan. 10. 

Hesse called 2013 a significant year for Sprint, as it saw Softbank take over the company through an 80-percent buyout. Meanwhile, Sprint also took control of Clearwire. He commented on a number of other issues: 

On the company’s fixed-line trial with Dish: “Our primary focus is mobile, but I think as 150 Mbps by end of 2015 on 2.5 spectrum…wouldn’t be surprised to see more cord cutting.” 

On LightSquared: “It all depends on the economic model, so if you could figure out a win-win, I think we’d be open to it.” 

On turning off the Nextel PTT network: “When we lost the account, we won 40 percent of our Nextel customers back. Bad news, we lost 60 percent.” 

Free Service for Students through Best Buy: “We were just trying to see if we could do something special during the holidays. It was a limited time offer in one channel. The response was OK, but it wasn’t great. I think it had less applicability to a wide audience.”

On the economics of the Framily plans: “The Framily Plan is going to decrease ARPU, but it’s also going to decrease churn, and decrease subsidy expense…In total it’s a good financial model to go after.” 

On not participating in the H-Block auction: As we look at future spectrum..our top pritotity is low-band spectrum. We have to make some choices with respect to the spectrum we would bid on. 

On unlimited plans: "I think unlimited will be around for a very long time, but I also think eventually there will be a very large portion of people who will be willing to pay extra for a premium service. I'm not committing that we'll always offer unlimted...but the price of unlimited may increase." 

On gambling: Don't drink before you gamble. 

 

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