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Sprint’s New Pitch: (Not Quite) All-In Pricing Plan

  Could it be that some of the top executives at the cell and cable companies have been reading our latest rants in Mouse Print* about deceptive low-ball pricing and unexpected additional charges and terms. Probably not. But, as if to say “we can hear you now,” Sprint started a big promotional campaign last week touting its new “all-in” pricing plan.

Sprint’s CEO put it this way:

“If you went to a restaurant that advertised a cheeseburger for 99-cents, but when you show up, they said it’s an extra $2 for the bun or $1 for lettuce, you would feel misled. Yet, that’s what the industry has been doing with its wireless plans. Why can’t everyone just advertise the full price of both the plan and the smartphone – an All-In plan? That was the idea behind what we’ve created.”

As part of the campaign, Sprint produced this extended commercial that pokes fun at its competitors who double-talk customers about all the extra charges they impose.


https://www.youtube.com/watch?v=QC22ZHo7Iak&feature=youtu.be

Wow. One monthly price for service and the phone.

Not so fast.

*MOUSE PRINT:

Sprint $80 a month

The $80 price you see is not the price you pay. Taxes, surcharges [including USF charges of up to 17.40%(varies quarterly), up to $2.50 Admin. & 40¢ Reg. /line/mo. & fees by area (approx. 5-20%)], roaming fees are still extra, and there is a $36 activation fee. Although this screen doesn’t say it (a prior one does in small print), this is for the lease of a phone. So you don’t own the phone, and will have to pay $200 at the end of two years if you want to keep it.

And here’s a new one: apparently Sprint is capping/throttling the speed of streaming videos to just 600Kbps — more like the 3G speeds that it uses on its prepaid service for videos.

So much for advertising a price that is “all-in.” Thanks, Sprint.

UPDATE: This video streaming restriction caused outrage among Sprint users and watchers, and within 24 hours Sprint backtracked removing that throttling of video speeds.

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You May Not Own Your New Cellphone

  If you are about to get a new cellphone from Sprint or T-Mobile, you better read the fine print, because you may not actually be buying that phone. You may only be leasing it.

MOUSE PRINT*:

Sprint ad

That’s right. Sprint is turning back the clock to the 1950s when you paid a monthly rental fee to Bell for your black landline Western Electric telephone. The difference: you are responsible for repairs if you don’t have a costly protection plan or warranty, and that old phone really sounded good.

For the iPhone 6, $20 of your monthly payment for 24 months is a lease payment, because under this plan, Sprint owns the phone. What happens after the lease ends?

  • You can turn in the telephone, get a new one if you want, and pay its monthly lease payments.

  • You can continue leasing it at an undisclosed monthly cost.

  • You can buy it outright for an undisclosed “purchase option price.”

    • The first option assumes your phone is in “good working condition.” If it isn’t, or if you lose the phone during the lease term, you owe the balance of any yet-to-be-paid monthly installments plus the “purchase option price.”

    If you opt to buy your Sprint iPhone 6 at the end of the lease, they will charge you $200 according to a local Sprint representative. That makes the phone slightly more expensive than buying it outright to start.

    Not to be outdone, effective this week, T-Mobile joins the leasing world also, by offering Jump on Demand. It is an 18-month lease program that allows you to upgrade your phone up to three times a year. T-Mobile, however, adds all kinds of penalties if the phone you turn in is not in working order.

    *MOUSE PRINT:

    You could be charged up to $750 in fines for the following:

    Cracked Screen Damage fee – $250
    Liquid Damage fee – $250
    Device does not power on fee – $250

    There are a whole bunch of other terms and conditions in both the Sprint and T-Mobile lease programs. It is getting to the point that you need a Ph.D. in cellphonery to understand all the choices, options, and terminology.

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    Here We Downsize Again – 2015 (part two)

      The parade of products being downsized continues. It is rare that a downsized product makes headlines, but this one did.

    *MOUSE PRINT:

    McCormick pepper

    Besides dropping one-quarter of the contents, what is irksome here is the old and new containers are identical. Here is a side view with the old on the left and the new one the right:

    McCormick side view

    As reported in Consumer World last week, a competitor is suing McCormick for unfair practices, saying in part that the new package has been slack-filled. That means there is nonfunctional empty space inside which is illegal under federal law, and possibly some state laws.

    Other competitors have noticed, and instead of fighting McCormick’s move, they are joining it.

    *MOUSE PRINT:

    Pepper competitor

    Toilet paper continues to be subject to the shrink ray. The latest, Cottonelle, has had each sheet downsized in both width and length.

    *MOUSE PRINT:

    Cottonelle

    The good news — there are still 208 sheets on a roll — albeit each sheet is just a little closer to resembling a postage stamp than before. Thanks to Richard G. for this tip.

    Lastly, we have bar soap. Many brands of “bath size” soap were originally five ounces. Then they became 4.5 ounces, then 4.25 ounces, and finally four ounces. Sometime, probably last year, Olay reduced the size of its soap from 4.25 ounces to four ounces.

    *MOUSE PRINT:

    Olay 4.25 oz

    Olay 4 oz.

    But, every so often after a product is downsized, companies will come out with a “bonus pack” giving you back what they took out. They make you think it is your lucky day.

    Olay 5 oz.

    Of course, this just puts bath size soap bars right back where they started at — five ounces — but not at the old price.

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