Boost in Competition

State

Boost Mobile’s catchphrase is “Where you at?” Maybe they should add a local reprise: “Ho, where you stay?” Because Boost, a wholly-owned division of Sprint (NYSE: S), is looking to vastly expand its market share here with a prepaid, unlimited service plan. That option became available in Hawaii in February.

Since 2005, Boost has offered prepaid, pay-as-you-go service in the Islands. The new flat-rate service requires no contracts, credit checks or activation fees. Boost offers unlimited talk for $35 a month, unlimited talk and text for $40 a month, and unlimited talk, text and web access for $45 a month. The home calling area covers most of the four major Hawaiian Islands, and the area can be expanded to California and Las Vegas for an extra $5 a month.

“We’re utilizing our larger network that we have available and expanding the value proposition for the customers,” says Sam DiSalvo, senior pricing manager.

Unlimited by Boost was launched in California and Texas in March 2007 and in the southeastern U.S. and Las Vegas in October of that year. In the fourth quarter of 2007 alone, Unlimited by Boost subscribers doubled, from 224,000 to 500,000. In those markets, Boost went head-to-head with incumbents Leap Mobile and Metro PCS, and William Ho, a national telecommunications analyst, says the company was able to compete with those companies because it offered the same service with a larger
calling area.

In Hawaii, Boost’s key competition will be local provider Mobi PCS, which has a similar prepaid flat-rate service model. In a prepared statement, Mobi says it is up for the challenge. Renee Awana, vice president of marketing for Mobi PCS, says, “Since launching service two years ago, Mobi has been successfully competing against national carriers and earning the business of Hawaii wireless customers. While many other carriers now offer unlimited versions of wireless service, Mobi’s key strengths remain our local focus and commitment to Hawaii.”

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