Sprint Launches Low-Priced $20 Deal on 1GB Data Plans

By Todd R. Weiss  |  Posted 2014-10-23 Print this article Print
Sprint data plans

Undaunted by AT&T's offerings, Sprint and Verizon then one-upped AT&T's offer by jumping in with their own free data salvos for customers, according to an earlier eWEEK report. Sprint hiked its own shareable data packages for users who buy monthly shared plans for 32GB, 40GB or 60GB of data, offering users free increases to 60GB, 80GB or 120GB, respectively, while Verizon doubled the included shareable data for business customers who buy monthly packages of 20GB to 50GB. Families that purchase smaller shared data plans also got modest boosts in their available data plans.

All of these boosted data offers have come at a cost, however,

Early this month, Sprint announced the layoffs of an as-yet-unknown number of employees as the company said it was reducing its workforce to save some $160 million in costs in the second quarter of 2014 as it seeks to "become more competitive in the marketplace."

The layoffs might not be over with this round of cuts, the company said in the filing. "The company expects to recognize a charge of approximately $160 million in the second fiscal quarter of 2014 for severance and related costs; however, additional material charges associated with future labor reductions may occur in future periods," according to the filing.

The layoffs are being carried out to reposition Sprint in its ongoing competition with rivals in the marketplace, including Verizon Wireless, AT&T and T-Mobile, according to the company. "Sprint is focused on becoming a more competitive player in the marketplace. This includes offering competitive pricing plans and getting our cost structure more in line with that of our competitors. As part of this effort, organizations across Sprint are examining their cost structures and operations to identify opportunities for increased efficiency and streamlined approaches to meet our customers' needs. The decision to reduce our workforce is never an easy one, but this, in conjunction with other cost-cutting measures, is necessary to help Sprint lower our costs."

Meanwhile, Sprint has fallen into fourth place, below rival T-Mobile, in performance rankings among the big four cellular carriers in the United States, according to the results of new tests performed by RootMetrics, an independent mobile analytics firm. Still in the number-one and number-two spots in the rankings are Verizon Wireless and AT&T.


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