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Jan. 16, 2009

Boost Mobile, the prepaid wireless service division of Sprint is taking on rivals Metro PCS and Leap Wireless with a new $50 monthly unlimited calling package.

Boost's new plan also includes text messaging, wireless Internet and walkie-talkie features.

The no-contract package will be introduced only next Thursday, however. Boost's officials say they have some clear advantages over MetroPCS and Leap.

Among them are, thanks to Nextel-- a nationwide network, the walkie-talkie service and no extra fees.

The $50 monthly charge even includes taxes, roaming and other wireless fees, so that users won’t get hit with a host of other charges.

Boost did a trial of the unlimited offer in CDMA markets in the U.S., but that was limited to 19 cities and was largely used as a learning tool. The plan is still available in those cities but eventually will be winding down.

The aim now is on the iDEN markets, which include more than 15,000 cities compared to the combined reach of Metro and Cricket-run markets that total only about 300, Boost executives said today.

Boost says that Cricket has about 400 percent more dropped calls than itself, and that MetroPCS has twice as many dropped calls too. That’s based on independent third-party drive test data for the 19 common Boost/Cricket markets in the U.S. and the nine common Boost/MetroPCS markets within the top 50 most populated U.S. markets.

Like Sprint executives have said in the past, Boost leaders point out that iDEN is performing at its best-ever levels, and they’re not worried about having enough capacity to serve customers.

In 2008, Boost announced its intentions to move beyond the urban youth market that was at its core for so many years and target more families and ethnic groups, as well as older clientele. Carter said the company believes the $50 plan will drive up ARPU and compete with plans from the other wireless carriers, including T-Mobile USA, that add extra fees to the base amount.

Boost also has the advantage of using the Nextel network that was designed with use by public safety in mind.

All of Boost’s handsets come from Motorola, and more new models are expected as well in 2009.

Overall, Boost Wireless’ other offers include a $1 a day plan or 10 cents a minute. Mobile users who find they can’t make the $50 payment can switch to one of the other plans at no additional charge, and whithout incurring a penalty.

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Source: Boost Mobile.