Sprint Nextel Increases Cell Phone Contract Flexibility

Press Release - June 22, 2007

America’s third largest wireless carrier, Sprint Nextel, announced earlier this week that it is allowing subscribers to change rate plans at no penalty, within six months of singing a cell phone service contract.

Sprint is aiming to attract new customers, in particular first-time wireless subscribers, by making its services more simple and flexible. The company is currently aiming to boost its unimpressive subscriber growth numbers after several disappointing fiscal quarters.

U.S. wireless carriers typically force new postpaid customers to sign a one- or two-year service contract in order to get the best deal, and charge fees of up to $200 to users that cancel or switch rate plans after a one-month grace period.