Pre-empting a similar move expected to be launched by Sprint PCS in mid-May, Nextel Communications Inc. is reportedly set to launch new rate plans that provide consumers with a more predictable overage structure beginning May 1, according to a report from Bear Stearns telecommunications industry analyst Phil Cusick.
The Nextel Flex Plans, which are reportedly in trials in about 10 percent of the carrier’s markets, will either charge customers a reduced overage charge of 25 cents per minute instead of the current 40 cents per minute or automatically bump customers up to the appropriate minute plan if that proves less expensive than the additional overage.
The plans are expected to include four price points at $40 per month for 400 anytime minutes, $65 per month for 800 anytime minutes, $90 per month for 1,200 anytime minutes and $250 per month for unlimited calling. All plans also include unlimited night and weekend calling minutes, long distance and 100 Direct Connect minutes.
Cusick also noted the plans would likely replace the currently offered National Value plans, and despite the loss of higher per-minute overage charges, would likely have only a minor impact on revenues as the Flex plans provide a smaller bucket of minutes compared with similar-priced National Value plans. In addition, the more predictable billing is expected to reduce customer complaints and control churn.
Sprint PCS is reportedly set to launch a similar offering next month that would provide customers with a bucket of overage minutes for a fixed rate on top of an entry level rate plan that would be less expensive than traditional overage charges.
