Boost Mobile to reduce your bill by $5 every 6 months

We have heard of carriers raising prices, but Sprint's prepaid offering, Boost Mobile, intends to actually lower your monthly invoice by $5 every 6 months. After every 6 months of making an on-time payment, Boost Mobile will lop $5 off your monthly bill to a floor of $35 for its unlimited talk, text and Web plan.

Bob Stohrer, head of Sprint's prepaid marketing operations, said, "“It’s just as important to reward our customers and getthem to stay around as it is to acquire new customers." To that end, it is the first time that a prepaid company offered such a "loyalty plan" to its customers according to Forrester Research. The goal is to keep Boost Mobile customers hanging around since they tend to migrate to other carriers faster than Sprint's other prepaid offering, Virgin Mobile.

Customers who lower their bill will keep the new, lower price indefinitely. The plan is called "Monthly Unlimited with Shrinkage", a title that might make some males in the audience cringe when hearing it. For Sprint though, it is a serious matter as the company tries to reverse the trend that dropped prepaid additions to 173,000 in the second quarter against an addition of 348,000 prepaid customers in Q1 of this year.

Boost Mobile's current $50 rate for unlimited service matches the price offered by MetroPCS and beats the $55 a month plan available from Leap Wireless. Yesterday, T-Mobile announced a $70 monthly prepaid plan which includes unlimited talk and text and up to 2GB of data.

source: Bloomberg