In a move to sustain its business in a competitive market, Sprint Corp. has introduced "framily" plans that offer a group of people big service discounts.
Sprint CEO Dan Hesse has thought of ways to beat with competitor's family plans which made him come up with "framily" -- a plan that offers a group of 10 people, whether be it a whole family or a group of friends, up to 50 percent service discounts.
A family plan has become an effective strategy in holding back customers from shifting to other networks which offer better discounts. Sprint's own family plan is its retort to T-Mobile's aggressive offerings to its subscribers.
According to Reuters, Hesse admitted during a webcast of an investor conference at the Consumer Electronics Show in Las Vegas that this new marketing scheme will take a toll on the average monthly revenue per user. However, Sprint will still economically benefit from it through customer retention.
Additionally, Sprint can save up on phone subsidies as the plan requires each customer to pay for his own mobile phone, which can be either through straight payment or staggered payment.
Sprint's initial line of service with "framily" plan will include 1GB data, and unlimited talk and text for only $55 per month. With each additional user, $5 will be deducted from the price of each line until a total of $30 discount per user, per month is reached, Engadget reports.
Furthermore, each user can personalize their plans without the need to go through the main plan holder. Each line will also have its own bill.
Compared to its traditional family plans with seven lines, a "framily" plan is cheaper by $48 per user.
The downside though is that if one member opts to leave the plan, $5 will be added to the remaining members' monthly bill.
The new family plan will be available to existing and new Sprint customers beginning January 10. However, existing lines can only be combined in one plan if they are under the name of the same person.
