Sprint to Pay More to Virgin Mobile for Customers
Article Comments 5
Dec 26, 2008, 7:00 PM by Eric M. Zeman
Sprint is upping the amount it pays to Virgin Mobile USA from $2.50 per new customer to $4.50 per new customer that Virgin Mobile signs up. The agreement runs from July 1, 2008 and Dec. 31, 2009 and has a cap of $10 million. Virgin Mobile USA uses Sprint's wireless network to provide services to its customers. The move is meant to entice Virgin Mobile USA to tie more users to Sprint's network.
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Sprint is really unique in this aspect, and it makes you wonder due to their declining market share.
I hope sprint can hold on long enough to do something impressive with the 4g roll-out, and with their foray into WIMAX. I personally would not choose sprint as a customer or investor and have felt this way for the past 6 years, but for competition sake hope they stick around. We do not need more excuses for AT&T and VZW to bully the market on price.
By the sounds of it, they are offering this as an incentive. The more customers the MVNO signs up the more they purchase in minutes in the long run. Think of this more as a credit toward what the MVNO would owe...
I had a terrible experience, primarily with Sprint's network, about 5 years ago. Sprint was the first cell phone company I had and I swore I'd never use them again. So it was AT&T for work and Verizon Wireless for myself. ...