With Sprint posting a big quarterly loss last month despite beating revenue estimates, it should come as no surprise that the carrier that just can’t quite get out of that lowly fourth spot is looking to shake things up, according to a leaked memo. In a move that brings more than a little feeling of deja vu, Sprint is purportedly doing away with two-year contracts just a few months after bringing them back.
The leaked memo comes courtesy of PhoneArena and was only meant to be seen by Sprint reps. The memo shows how Sprint will cease to offer two-year contracts from August 26th for new customers or existing subscribers adding new lines or upgrading their current line. Instead, Sprint reps are to steer customers to lease agreements or monthly installment plans.
Verizon is the only top four carrier to still offer two-year contracts, albeit only for upgrades, so maybe Sprint is on to something here. Taking out the lease agreement means that Sprint will own the hardware, although subscribers can upgrade early after 12 months. While the installment plan means that the customer owns the phone, Sprint will charge $5 extra per month for an early upgrade.
According to the memo, only Sprint’s telesales and website can over two-year contracts, and only if the customer is going to ‘walk away‘ from the carrier because of the shift in strategy. Store managers do not have the ability to override the new policy.
While two-year contracts will allegedly be phased out for phones on August 26th, it seems that the option is still available for new and existing customers buying tablets or mobile broadband. What do you make of Sprint’s latest move?