Subject: [NEXTEL-1] Nextel prepares rate plans with predictable overage structure

From: [email-masked]
Date: Thu, 29 Apr 2004 14:18:35 -0400

Nextel prepares rate plans with predictable overage structure
By Dan Meyer
April 29 12:49:00, 2004

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.

http://rcrnews.com/cgi-bin/news.pl?newsId=17910
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From: [email-masked]
Date: Thu, 29 Apr 2004 14:55:18 -0400

Ah, Details, Details, Details........

What happens the next month when you are under your allotment? Does it
revert back to your original plan? Or do you still pay the higher rate?

Any bets?

> http://rcrnews.com/cgi-bin/news.pl?newsId=17910

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