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Sprint CFO Claims “Cut Your Bill In Half” Will Only Save 20 Percent

Sprint is starting a new promotional deal this week, targeting AT&T and Verizon Wireless customers who want to move to a Sprint contract and save a lot of money.

The original deal stated customers would be able to save 50 percent on a new contract at Sprint, simply by showing a member of staff the previous monthly contract.

What wasn’t mentioned in the deal is the extra payment the new customer has to make for a new phone, either done through lease, Easy Plan installments or an outright payment.

Sprint CFO Joe Enteneuer revealed at a Bank of America conference that the deal will in-fact save new customers around 20 percent, claiming the promotional offer is simply to get customers into the stores.

It is a rather smart tactic by Sprint and still allows customers to save money, but not as much as customers may be expecting. 20 percent saving each month is still good and Sprint is starting to show signs of competing on price.

The removal of T-Mobile from the deal shows Sprint is not confident in losing too much money per customer. The deal will run for a few months and Sprint expects annoyed Verizon Wireless and AT&T customers may take the promotional offer.

In a perfect scenario, the customer is just about to finish the contract on the two carriers, doesn’t need much to pay it off and wants a cheap-ish smartphone. This will mean the customer will incur half the cost for carrier fees and less than $399 for a new smartphone.

Sprint is starting to come out of its shell, following the 2.3 million subscriber growth at T-Mobile this quarter. Soon enough, Sprint will be placed fourth, unless they start winning over customers.

However, it is an uphill battle and Sprint is still ranked one of the worst in customer service, making it even harder for the U.S. carrier to win back customers.

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