January 16, 2009

Boost reaches low with new price

U.S. phone company Boost said it would charge $50 a month for unlimited calling, setting wireless calling prices at a new low, an industry analyst said.

The package includes unlimited text messaging and Web browsing, USA Today reported Friday.

Industry analyst Craig Moffett at Bernstein Research wrote the price was a new low in the wireless market, USA Today reported.

The pricing could not come at a better time, given the economic weakness, said analyst Walter Piecyk at Pali Research.

The price set by Sprint's pre-paid division could trigger a price war and could even undermine Sprint's business, the newspaper said.

Boost President Matt Carter said the older Nextel network Boost uses would not compete directly with Sprint.

Boost's system is a lot slower, than the one Sprint uses, Carter said. It also does not include newer features, like a GPS navigation feature, that Sprint's new 3G network provides, USA Today said.