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Boost Mobile: 50 more stores coming by year-end
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Boost Mobile is planning on expanding its retail presence by adding 50 more exclusive stores by the end of the year in anticipation of what the company sees as the growing popularity of its prepaid wireless service. The move is a significant one for Sprint Nextel's prepaid unit, which currently has only three retail stores.
Boost brought in 764,000 prepaid iDEN subscribers to Sprint in the first quarter, and has touted its $50 per month unlimited voice, data and texting plan as a solid value proposition in the economic recession. However, Boost has also acknowledged that the network was "overwhelmed" by the amount of traffic it received, which reportedly caused text messaging delays. Sprint CEO Dan Hesse said during Sprint's first quarter earnings conference call that the company had solved the problem.
Boost Mobile's president, Matt Carter, who has said in the past that the unlimited plan picked off customers from larger rivals such as T-Mobile USA, said that the success of the plan has led the prepaid unit to look for ways to expand its market reach. "What's important to us is street visibility," Carter told Reuters in an interview. "We think it's going to help us quite a lot."
The company currently has stores in Houston, Los Angeles and Miami and will soon expand to 10 more cities in this quarter, including Atlanta, Chicago, New York and Philadelphia. Boost will open 40 more stores by the end of the year, according to Carter.
Boost's service has put it in direct competition with regional carriers such as MetroPCS, which added a company-record 684,000 subscribers in the first quarter, and Leap Wireless, which had around 493,000 net subscriber additions in the quarter. T-Mobile has also introduced a $50 unlimited calling plan for certain longtime customers.
For more:
- see this Reuters article
Related articles:
Sprint CEO: We fixed Boost's texting problem
Sprint boasts about Boost while postpaid net adds plummet
Boost acknowledges being 'overwhelmed' by unlimited texting, promises fix
Boost Mobile chief: Unlimited plan picking off T-Mobile customers
Boost Mobile plan sparks fears of price war
Boost Mobile debuts $50 unlimited voice/data plan
Comments
Posted by Samuel Ayeh | May 9, 2009 - 7:13am
This is a great strategy indeed. Boost Mobile has very smart distribution. Watch out Virgin Mobile, they are about to hit you where your weakest, which is indirect distribution.
Virgin Mobile's indirect distribution is broiled in contraversy and Boost Mobile will finally be able to blow it righ open.
Posted by DavidB | May 10, 2009 - 9:42am
I'm not so sure opening 50 stores helps the bottom line. How many Sprint $99 per month unlimited post paid subs will switch to $50 per month pre paid subs? That can't help ARPU.
Posted by James Gardner | May 17, 2009 - 12:07pm
This is what most people do not understand regarding Boost. Boost used to allow customers to port-in their number from Sprint, it is no longer allowed, this is why there is almost no people switching from Sprint to Boost. This allows them to attract customers from other carriers while keeping the Sprint customers at bay.
Then what happens is that once they want the faster internet they move them over to Sprint. It's called value-funnel in wireless.
The move by Sprint is absolute genius because it allows customers to stay with the same company throughout the wireless cycle. Especially with WiMax making all other networks weak in comparison to data, Sprint will attract the top, middle and bottom customers.
James Gardner | Truth Wireless
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