Subsidized wireless programs meant for low-income citizens are leading to an increase in customers for Sprint, as the carrier is trying out new and innovative measures to boost its number of subscribers. The Lifeline program, which is federally subsidized, provides millions of Americans which come in the low-income bracket with 250 free minutes of cell phone calls every month, paying carriers such as Sprint around $10 for every such subscriber for offering discounted or free wireless plans to customers which qualify for them.
Free wireless services are offered by Sprint through its brand called Assurance Wireless, and the wireless carrier derives a little profit from offering these subsidies. However, Sprint could benefit more through the subscribers that it gets from the plan. The carrier based in Kansas has not revealed the exact number of such subscribers; however it did say that Assurance is nearing the two million mark for its users.
During this third quarter, Sprint made strides in its goal of adding more customers, with over 1.3 million new subscribers opting for the carrier. The company has stated that more than half of the subscribers that it gained in that period came from the free service. Sprint is still trying to get profitable contracts with the unlimited plans and the latest Apple iPhone 4S that it offers; however, the majority of its total customers during the year have originated from the low-end customers who often prefer to pay per month. With all the carriers fighting for subscribers in a market that is reaching saturation, subscribers who earn low incomes could come as a new avenue for growth.
Two of the biggest carriers in the US, AT&T and Verizon Wireless, have also been offering discounted plans to take advantage of the subsidy from the government. However, Sprint offers its subscribers with Assurance a chance to buy an extra 200 texts or 250 minutes for $5 every month. This is a big help for the customers who are on a constrained budget to avoid the high charges of overage, and allows the people who cannot own landline telephones because of their transient lifestyles to hold reliable phones. Assurance is operated by Sprint across 30 states and the District of Columbia, and is also about to start offering its services in California.
