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Sprint Aims To Disrupt AT&T DirecTV Strategy With Free Offer
Sprint said from August 28 to September 30, both DirecTV customers switching to Sprint and existing Sprint customers who add a new line of service through the Sprint Lease, Sprint’s “iPhone Forever” plan, Sprint Easy Pay or who pay full retail price for a smartphone will get 12 months of unlimited voice texting and a 2 GB of data per line (for up to five lines) all while on the Sprint network.
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The promotion takes explicit aim at AT&T, whose recent purchase of DirecTV made it the country’s biggest pay-TV provider. AT&T, which bought DirecTV for $48.5 billion in July, 2015, has been promoting a bundle that knocks $10 a month off a combined bill for video and wireless phone service. “Why not build the ideal bundle by combining with Sprint wireless?”
Sprint normally sells plans with unlimited talk, text and data for $60 a month plus the cost of a smartphone.
T-Mobile is now the No. 3 wireless carrier in the U.S. after surpassing Sprint this year.
“This ranks right up there with a desperate Hail Mary pass to a petite defensive lineman”, said Brad Burns, an AT&T spokesman.
Sprint has been struggling ever since the company lost its bid to purchase T-Mobile previous year.
Dallas-based AT&T Inc. has been using the DirecTV service as a way to package wireless access and entertainment.
If you’re a DirecTV customer, Sprint will give you a year’s worth of cell phone service for free. “With Sprint’s network and the many asterisks on this deal, we’re feeling good about our offers”. Because DirecTV customers have also already passed credit checks, he believes most will be good customers.
While the service is free, customers are responsible to cover the cost of their devices.
It seems the only fee associated with the offer will be a $36 activation fee (as well as monthly taxes and surcharges, depending on the state), as Sprint has also offered to pay off the old phone and plans of customers who make the switch.
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Additionally, Sprint will pay off your current phone when you switch. “They get a tip of the hat for making a marketing splash, but it is reckless for a company that is burning through its remaining liquidity at such a rapid rate to now start giving away service for free”. This keeps the users at unlimited talk and text with 2GB of data.