Analysts: Sprint unlikely to change unlimited plans until network improves

Sprint CEO Marcelo Claure said the carrier might raise the pricing of its unlimited smartphone data plans later in 2015 and could eventually get rid of the option altogether. Financial and industry analysts say Sprint is unlikely to remove the unlimited option until it significantly improves its network quality, though analysts are split on how such a move would impact Sprint's subscriber base. Analysts say that Sprint's unlimited plans remain one of its most compelling selling points. "The reason that unlimited is important at Sprint, and really it comes down to value, is because its network is not as strong as its peers," Credit Suisse analyst Joseph Mastrogiovanni said, adding that it might make more sense to change unlimited pricing in 2016 when the network is expected to be in better shape.

Mastrogiovanni said that if Sprint were to improve its network quality to get it at parity with its rivals it would have more flexibility to increase the pricing of its unlimited plans or eventually eliminate the unlimited option. He also said Sprint could take other steps to rejigger its pricing so it still was the value-leader in the market. That would mitigate any negative effects that might occur if Sprint eliminated unlimited plans. Moreover, Sprint would likely grandfather in customers who already have unlimited plans.