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Sprint Prepaid News: 98% of Virgin Mobile Phone Sales are Smartphones, LTE and PTT Coming to Prepaid

At the Sprint Open Solutions Conference for developers and partners which I attended today, Sprint VP David Owens gave a presentation on Sprint's postpaid and prepaid device portfolio. He shared some surprising sales data about smartphone penetration on prepaid. In the last quarter, 98% of Virgin Mobile's handset sales were smartphones. That's even higher than the 90% smartphone sales share on Sprint postpaid. On Boost Mobile, smartphones accounted for 73% of third quarter sales.

Owens said that Sprint's strategy with prepaid includes offering high end devices and the latest features from its postpaid phones on prepaid. He gave visual voicemail and Sprint ID as examples and said Sprint will offer LTE phones on prepaid. He didn't give a date for prepaid LTE but implied that it would be relatively soon which I'm guessing means next year.

Also at the Sprint conference, Sprint Product Manager for Push To Talk products, Rob Dill said that the Push To Talk Android app would be coming to Boost CDMA in 2013. It's currently available for the Kyocera Rise, but only to post paid subscribers.

In other Sprint prepaid news, Sprint released their third quarter financial results today. For the quarter ending 9/30/2013, Sprint gained 19 thousand prepaid customers and 14 thousand wholesale (primarily prepaid MVNO) customers. The net gain was achieved in spite of losing 440 thousand Boost iDen subscibers. 34% of whom actually switched to Boost CDMA. Sprint is actively trying to get customers off iDEN with free and discounted phones, and starting Nov 7th, a price increase for Boost iDEN holdouts, so the iDEN loss was expected and offset by gains on the postpaid side. Prepaid CDMA churn was 2.93%, the lowest ever in Sprint history. Sprint finished the quarter with 15.4 million prepaid subscribers, making it the largest prepaid operator that operates its own network and the second largest overall after America Movil (Tracfone, Straight Talk, Net10, etc.).

3 comments:

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  1. Yeah I liked to know how much more is people expecting to pay for 4G LTE.

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  2. I'm thinking they won't pay any more, as 4G LTE will enetually surpass 3G...

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  3. This seems like a positive thing since I'm on Boost myself. But I have to agree on the first comment. How much extra for Direct Connect and 4G LTE. I wouldn't mind fishing out $5 to $10 more. Even though people say that Boost has slower 3G/4G data. I have to disagree with that. It all depends where you live. Boost has yet to build it's network.

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