Boost Mobile Overwhelmed By Popularity Of $50 Unlimited Plan; Texts Delayed By Hours
The good news is that Boost Mobile’s new $50 unlimited calling-and-texting plan is attracting hundreds of thousands of new customers. In these tough economic times, it turns out, it is exactly what fiscally-concerned consumers are looking for.
The bad news, however, is that it’s attracting more people than the network can handle. Cell-phone dealers and customers are reporting widespread problems with texting on the Boost network, AP reports. Often times, messages are delayed by hours, and in many cases arrive early in the morning. Boost spokesman John Votava told AP: “The popularity of Boost Mobile caught us off guard. It overwhelmed our system.”
The idea of overwhelming the system is hard to understand. Boost Mobile is a subsidiary of Sprint (NYSE: S), and runs on Sprint’s Nextel network, which has been bleeding customers ever since Sprint bought the network a few years ago. You would assume that some smart business development people did the math and figured out that it had enough extra capacity on the Nextel network to afford to offer a cheap and dead-simple value proposition that consumers would eat up by the masses. It would increase the value of the Nextel network, while at the same time getting Sprint the boost in customers it needed. However, it didn’t work out so easily. While Boost may have kicked off a price war among pre-paid, and even some post-paid networks, it appears it wasn’t ready to win.
Votava denied that there are long-standing problems with the Nextel network and said the problems are limited to the massive influx of customers. He assured AP that the company is working “day and night” to remedy the problems, and aims to have the system “much improved” by next week. On Monday, we’ll likely get an update on the issue during Sprint’s first-quarter earnings conference call. Currently, analysts expect Boost to say it added somewhere around half a million subscribers in the first quarter. While that’s great news for the company, it still is not expected to outnumber the defections from Sprint as a whole.
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