Sprint Violates AT&T's Virginity
The Market Ticker ® - Commentary on The Capital Markets
Posted 2012-06-07 17:12
by Karl Denninger
in Company Specific
Ignore this thread
Sprint Violates AT&T's Virginity
 

Here it comes AT&T and Verizon....

Virgin Mobile USA, a prepaid brand of Sprint (S:  2.74, +0.02, +0.74%), on Thursday announced it will offer the Apple (AAPL: 571.72,  +0.26, +0.05%) iPhone on a no-contract basis to customers starting on  June 29, but you may want to think twice before jumping ship from your current  carrier if you're already an iPhone owner.

The "garf" is that you're going to have to pay cash for the phone -- in this case, $549 or $649, depending on the model you want.  No subsidy.

But.... the plan is $35/month for 300 minutes of voice and unlimited text and data.

Now consider that over two years if you buy the phone from AT&T it breaks down like this:

$199 up front for the iPhone 4S

$39.99/mo for base 450 minute service
$30.00/mo for 3gb of data
$20.00/mo for unlimited text messages
======
$89.99/mo * 24 months = $2,159.76 + $199 = $2,358.76 over two years

Now on Virgin, it's $649 up front and then $35/month * 24 months, or $1,489.00 over two years.

Want to pay an extra $869 plus additional taxes and fees on the AT&T service that are billed separately but not on Virgin, which simply charges sales tax (this can easily be $200 or more over those two years.)

Go right ahead.

For everyone else just tell AT&T and Verizon to***** off.

Disclosure: The author has a speculative position in Sprint (S)

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Comments.......
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User Info Sprint Violates AT&T's Virginity in forum [Market-Ticker]
Jotapay
Posts: 16733
Incept: 2008-08-26
Silver
Austin, Tx
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Wow. I shouldn't comment a whole lot because of a conflict of interest, but wow. This will shake things up. Some people I know with contracts may be a little bit*****ed off after hearing this.
Genesis
Posts: 130777
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Admin A True American Patriot!
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It's even worse if you want unlimited. Unlimited everything is $20/month more on Virgin ($55 .vs. 35).... go price AT&T's unlimited minutes....

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Redwolf
Posts: 745
Incept: 2010-05-23
Green
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Finally. I'll be moving over as soon as my contract is up.
Obsidian
Posts: 2448
Incept: 2008-10-10
Green
Eagle Mountain, Utah
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We've been with VM for a while now (year or two). The kids are grandfathered in on the 25/mo plan (now 35/mo), but the wife and I have the 45/mo (1200 min) plan. I really like them, but the data speeds are often less than I'd hope for. Sometimes they're ok, but often the are slooow.

I'm happy with my $99 Optimus though. Don't see any need to fork over $500+ to Apple.

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232-Th + n --> 233-Th --> 233-Pa --> 233-U.
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Flaps10
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seattle
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Contracts are so last year.

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"Better to die on your feet than live on your knees"
Templar223
Posts: 779
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Green
Champaign, IL
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Title typo, I believe.

Should be "SPRINT violates..."

Duc888
Posts: 7368
Incept: 2008-11-06
Gold
CT, the UNconstitution State
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Unlimited* is throttled at 5GB now with Sprint. I got their text 2 days ago.

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...burp

Mrbill
Posts: 7857
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Gold
North Carolina
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Quote:
Unlimited* is throttled at 5GB now with Sprint.


Only if you use a device other than your mobile phone to access that data.

It's true that they're reducing "unlimited" but if you just have a phone, you're still good for now.

Will change, and should, for most people shouldn't want to subsidize the biggest users.
Duc888
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Gold
CT, the UNconstitution State
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How would they know if I tether? Also it used to be unlimited "WIFI Hotspot"....If I read correctly that's throttled at 5GB.

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...burp
Genesis
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Admin A True American Patriot!
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Its pretty easy to detect tethering....

----------
I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Nike
Posts: 7403
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Green
Bright Light City
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The new VM phones are so pretty.

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We, in the ages lying, In the buried past of the earth,
Built Nineveh with our sighing, And Babel itself with our mirth;
And o'erthrew them with prophesying, To the old of the new world's worth
Each age is a dream that is dying, Or one that is coming to birth.
Mrbill
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Gold
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Pretty easy to know if you tether.

Yes, that's throttled too.

In fact, I think it's not throttled, but you're charged for going over 5GB. I'd rather have T-Mobile's throttling than extra charges.

I tether (in airports) and I've only used 800MB in the last 3 months.

Landshark
Posts: 11295
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Silver
The Wild West
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I've been very satisfied with VM. Guy I work with just showed me his new HTC Evo 4G... beautiful device. Very cool 3-D camera.

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Success in life is a matter not so much of talent and opportunity as of concentration and perseverance.

– C. W. Wendte
Connieg
Posts: 860
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Houston, TX
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Right...it's just $30 if you set up monthly pay with paypal or credit card. The extra $450 for the phone will be paid in as little as 9 mo as a result plus you have a phone that you will be able to resell on ebay for real money later on. I am thinking of switching over from the stubborn tmobile if they don't come up with something along the same lines in the next 30-45 days. I am sure millions will as well.

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"Go long...something" Me
Genesis
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There are options to avoid being caught tethering. Be aware, however, that they're getting smarter -- it's not just looking at HTTP headers any more.

T-Mobile has gotten particularly crafty about it.

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Musicandnature
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Gold
NJ
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Can one buy a used iphone4 (don't need siri) or must you buy a new samsung or appl for Sprint to plan you ?

Anyone in NJ shore area have Sprint ? I formerly had t-mobile prepaid and coverage was sporadic- my house ended up being a dead spot.

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Since it costs a lot to win, and even more to lose, You and me bound to spend some time wonder'n what to choose. Goes to show, you don't ever know, watch each card you play and play it slow...Wait until that deal come round, don't you let that deal go down, no no. Garcia/Hunter.
Mrbill
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Sprint (and I'm assuming VM by extension) has to sell a metric f-ton of iPhones in the next 4 years. Trying to make people buy a new phone for your network should help toward that goal.

They're going to make it tough even if its technically possible to avoid buying a new phone.

Genesis
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Admin A True American Patriot!
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Virgin Mobile has their own code that has to be on the phone for activation purposes (that handles validation of the ESN against your subscription) so you can't import other CDMA phones. GSM phones won't work at all since Sprint is a CDMA network.

----------
I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Jmanng
Posts: 537
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Boston, Massachusetts, USA
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Is Virgin Mobile's network as good as Verizon? I live and travel in the northeast and I have Verizon. I rarely get any dropped calls or bad reception on my Android phone.

Genesis
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Admin A True American Patriot!
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Depends on where you are. I was very happy with it when I had it, and my kid still has it and is very happy with it.

----------
I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Flaps10
Posts: 5171
Incept: 2008-10-17
Silver
seattle
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I'm a moron (certified, actually) but I thought that Verizon used CDMA, or at least non-SIM phones. One of those can't be jail broken or spoofed to behave correctly?

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"Better to die on your feet than live on your knees"
Genesis
Posts: 130777
Incept: 2007-06-26
Admin A True American Patriot!
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If you can get a Virgin software load on it the hardware would probably work -- if their system recognizes the ESN as valid.

----------
I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Landshark
Posts: 11295
Incept: 2008-02-07
Silver
The Wild West
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Virgin utilizes the Sprint network, and I've never had a coverage problem with it anywhere.

----------
Success in life is a matter not so much of talent and opportunity as of concentration and perseverance.

– C. W. Wendte
Duc888
Posts: 7368
Incept: 2008-11-06
Gold
CT, the UNconstitution State
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My Sprint reception kinda sucks.... I'm using an amplifier now at my crib. I would describe it as "sketchy", much like AT&T coverage.

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...burp
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