Sprint to ditch traditional contracts with Xohm, rely on subscriptions
We've yet to find an average joe (or jane) who just adores that two-year agreement they signed to receive a single subsidized device on day one, and while Sprint hasn't been one to let folks off the hook early, it is trying a slightly different approach with Xohm. Reportedly, the carrier will be relying on "subscriptions," which will enable customers to save more when paying for larger chunks of time, while not forcing them into anything long-term. On the same token, this also means that you'll likely be paying full price for any hardware. Notably, the outfit's CTO also made clear that Xohm "would not be backed by what the industry calls service-level agreements," so don't count on any kind of minimum bandwidth guarantee. As for pricing, the numbers are apparently still being worked, but it was suggested that the service would "probably be based on tiers."
[Via TechDirt, image courtesy of BroadbandReports]
[Via TechDirt, image courtesy of BroadbandReports]
























Reader Comments (Page 1 of 1)
Stan @ Sep 29th 2007 1:13PM
And don't forget... October 1st Sprint is changing it's text messaging rates so anyone looking to get out of their contract... that's the time to do it! http://consumerist.com/consumer/cellphones/how-to-cancel-sprint-without-termination-fee-over-new-text-message-rate-change-290247.php
nino63004 @ Sep 29th 2007 1:21PM
yeh they made a change in the Terms and Conditions so you can't get out of your contract anymore with this text change.
Nino
The D Train @ Sep 29th 2007 1:59PM
Technically that wouldnt apply to someone who signed under the Ts&C's that existed prior to removal of any adverse effect clauses. When a company changes Ts&C's it applies to new applicants or customers under new priceplan codes after those Ts&C's were made. Unless sprint really forgot how to run a business.
Nino @ Sep 29th 2007 2:14PM
I thought I read that all T & C were changed and you got a letter with your Sprint bill informing you of these changes and when you paid that next bill you agreed to the new T & C.
NIno
The D Train @ Sep 29th 2007 2:43PM
If that is the case, that is an extremely shady way to change their Ts&C's and completely encompass their tenured and new customers. Anyone from sprint, that is competent enough to confirm this without completely making shit up?
kashif @ Sep 29th 2007 3:51PM
Awesome! I know I'm not the only one who thinks this is a good idea....
trooth @ Oct 4th 2007 3:48AM
Im interested to see how the subscription works, and how it will differ from prepaid services. I know one of the biggest gambles with post paid service is the chance that the consumer will run up a huge bill and not pay it. Could this possibly be like a prepaid plan without the prepaid limitations which would allow you to go over your minutes, have free reign of adding additional services etc.
At first I would expect to see prepaid like prices on these plans or a middle tier between prepaid prices and contract prices. I am sure churn is a consideration with these plans, but if the consumers aren't activating and dropping everyother month it may not be an issue.
I am certainly not a fan of subsidizing cost of phones. Subsidizing always ends up costing the customer more because the equipment manufacturers can get by with charging higher costs for equipment that is then absorbed by the company and then pushed to the end user. Its like education costs or healthcare costs. The more subsidation that happens the higher the prices are hiked because they *can* be paid. They get to avoid true capitalization and competition. Certainly good to see a large carrier try to break out of the mold.