Cricket also targets T-Mobile US, MetroPCS, Sprint, Boost with free month
AT&T Mobility’s Cricket Wireless brand launched a device financing option for its prepaid service that provides three “tiers” for customers to not have to pay the full price for a device upfront.
The first tier requires a $20 initial payment, with the remainder of the price spread out over a two-year period with no accrued interest. This offer also allows accessories and taxes to be folded into the payments.
The second tier also requires a $20 initial payment, with no interest charged if the device is paid off within six months. However, if the device is not paid off within that time frame, customers will pay accrued interest from the date of purchase at a 30% annual percentage rate. This option also allows taxes and accessories to be folded into the payments.
These first two tiers also require a standard credit check, which typical prepaid rate plans do not require.
The third tier is a “rent-to-own” option that allows customers to purchase a “premium” device with a $50 down payment and paying the balance in installments over a 90-day period. This option does not incur interest charges, though a third party may be required to verify financial information.
All Cricket phones priced beginning at $200 qualify for the payment options, with a maximum of five devices able to be financed per account.
Under the Leap umbrella, Cricket in 2013 launched a device financing option that also provided for three options ranging from no interest to deferred interest or no credit check.
To further entice customers, Cricket is also offering one free month of service for customers coming from T-Mobile US, MetroPCS, Sprint or Boost Mobile. Those customers will have to select a rate plan of at least $50 per month and will receive the free month of service after completing two months of service. In its previous operations under Leap Wireless, Cricket had run into fraud issues by offering the first month of service free to new customers, who in many cases would quit the carrier after the month was up only to sign up again as a new customer.
AT&T had previously targeted T-Mobile US and MetroPCS customers with a Cricket promotion that offered a $100 credit per line for customers who switched. T-Mobile US last month announced an “unlimited” offer for its MetroPCS-branded service that undercut rate plans from Sprint’s Boost division and Cricket.
AT&T reported last month that continued integration challenges connected with its relaunched Cricket service are set to impact first-quarter financial margins, though will decrease through the year.
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