The update includes an expansion of the carrier’s Sprint Flex program, which now offers the option to lease any phone – whether it be an iPhone or a lower-end device. The program has also expanded upgrade options for Sprint Flex users. Formerly open to iPhone and Samsung Galaxy customers only, an annual upgrade option is now open to all other devices as well for a $5 per month upcharge. At the 18 month mark in the lease, customers will have the option to return their device and upgrade or buy out the device to own it, either in one lump payment or over the course of six months.
The carrier is also offering an option called Sprint Deals, which allows customers with little or no credit to build credit with the carrier through the lease program. Just like Sprint Flex customers, Sprint Deals users will be eligible for a free upgrade after a year of on-time monthly payments, the carrier said.
“Sprint Flex is the ultimate option for consumers who want the latest device at our most competitive prices with maximum flexibility,” Sprint CEO Marcelo Claure said in a statement. “Sprint Deals goes one step further, giving price-conscious consumers incredible offers and the option to upgrade to the latest phones every year.”
The offer is just the latest way Sprint is trying to draw in customers in an attempt to address what Claure has called one of Sprint’s toughest challenges: getting customers to at least give the carrier a chance. The lease ploy comes after Sprint turned up the heat last month with a free year of unlimited offer for BYOD customers switching from its major rivals. And Sprint has previously tried to get customers in the door with ultra-cheap iPhone offers.
Claure at an investors conference back in May pointed out Sprint’s use of lease programs not only pulls customers in, but also helps drive the carrier’s upgrade rates thanks to the annual upgrade option. However, Roger Entner of Recon Analytics pointed out the lease idea comes with one big risk, namely that customers won’t give their devices back.
It’s happened before.
In April 2016, Sprint was forced to post an advisory reminding its customers that their leased devices are not eligible as trade-ins with other carriers.
Filed Under: Carriers
