Sprint Is Planning to Increase Prices, and That's Great News for Everyone Else
Sprint (NYSE: S) missed out on its opportunity to merge with T-Mobile (NASDAQ: TMUS), and now it's left fighting for itself. That means investing in its network infrastructure. But as CFO Tarek Robbiati noted at a recent investor conference, "When you invest more money you are having to recoup that investment." That means price increases.
Sprint has already taken a small step toward increasing its pricing. It went from offering five lines of unlimited data for $90 per month to five lines for $100 per month. But Robbiati noted there will be more price increases in due course.
That's great news for the rest of the industry. Sprint has continually put pressure on other carrier's service prices. Verizon (NYSE: VZ) and AT&T (NYSE: T) have seen their service revenues decline over the last couple of years. But the ease in competitiveness could allow those numbers to rise once again.
Source: Fool.com
