New pricing plans from Sprint Corp. aren’t likely to hurt the company’s revenues, said an analyst Friday.
Sprint announced two plans Thursday that guarantee the buyer access to unlimited data for their phones as long as they keep the account. Its materials promoted prices starting at $80 as a potential savings compared to a $109.99 current plan.
“While technically this looks like a price cut, practically it is not,” Jennifer Fritzsche at Wells Fargo Securities wrote in a note to clients.
The new $80 plan is cheaper than the Simply Everything plan but essentially a new version of its more popular Any Mobile Any Time plan that also costs $80, Fritzsche wrote.
Sprint launched the new plans after completing its purchase of Clearwire Corp., which had the amount of wireless spectrum Sprint needed to make the lifetime data guarantee. Data – such as app downloads and streaming video – accounts for a growing burden on wireless networks that need spectrum to carry the data to cellphones.
Fritzsche said about a third of Verizon’s and AT&T’s customers continue under old unlimited plans through neither company offers that to new customers. Sprint’s new unlimited plans, she said, targets them without cutting into the average revenues it stands to collect from most of its current customers.
Separately, Bloomberg News said Sprint’s stock received a “strong buy” recommendation from Janco Partners Inc. analyst Gerard Hallaren. He set a target of $9 for the stock.
Sprint shares, newly issued after its $21.6 billion deal with SoftBank Corp., were up 19 cents at $6.47 in morning trading.