Boost raised the ante on the prepaid (and postpaid for that matter) wireless competitive battle by introducing an unlimited talk, PTT, mobile web, and SMS plan for $50/month. Boost takes direct aim at prepaid competitors including Cricket and MetroPCS, mentioning them prominently in their press release announcing the new plan. But realistically, this plan could impact postpaid competitors as well. With a cost conscious public focused on recession news story after recession news story, fifty bucks for an unlimited wireless plan that doesn’t require a contract may look appealing. “We assume to see people more from T-Mobile postpaid,” said Boost Mobile President Matt Carter to RCR Wireless.
What’s the impact on Boost’s parent Sprint? Will a significant number of Sprint postpaid customers leave for Boost and impact Sprint’s margins? I’m not privy to Sprint or Boost’s internal books, but I have to believe the margins are pretty thin on Boost’s new plan.