Boost Unlimited is offering a $50 per month unlimited prepaid calling, texting, and data plan, and that’s rocked the prepaid industry to a degree. And that includes taxes and fees too. But apparently some rival companies think they’re offering too much in the prepaid cell phones sector. Verizon for instance, it appears.
Verizon CEO Ivan Seidenberg thinks that Sprint is short-sighted and their offering will eventually cause Sprint to turn to ashes. This is a quote from a blog about statements made by Seidenberg, told by InformationWeek’s Eric Zeman:
Seidenberg had some unkind things to say about its chief CDMA competitor, Sprint. Sprint’s pre-paid arm, Boost Mobile, recently announced an all-you-can-eat plan for $50 per month. Seidenberg doesn’t think Sprint’s network can handle it. He said, “I don’t know what Sprint thinks it is,” and he believes the increased network demand will cause Sprint to “eventually self-destruct.”
Sprint might be a little confused right now, but what they are causing is a price war in the prepaid space, which is something it really needed (and what Verizon doesn’t need really; the cause for the venomous words, more than likely). Virgin Mobile has already lowered their unlimited prepaid plan to $50/mo as well.
It’ll be interesting to see how this shakes out, but for now it’s safe to say that Verizon and Sprint aren’t sending each other Christmas cards this year.
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