|
Leap Broadens Reach with Best Buy Retail Expansion and New PAYGo Plan Category
| Sep 26, 2011 | Consumer Services U.S.
| Analyst: Wes Henderek
Event Summary
September 26, 2011 - Leap has announced the launch of new PAYGo and Muve Music rate plans available nationally at Best Buy through a new retail distribution agreement. The new PAYGo plans are priced at $25 and $35 per month and come with 300 or 1,000 anytime minutes along with unlimited messaging and data. The new Muve Music plans are priced at $45 and $55 per month and both come with 1,000 anytime minutes, unlimited messaging, and data. The cost premium on the Muve Music plan is for customers who choose a smartphone.
Quick Take
Analytical Summary
• Current Perspective: Positive on Leap’s announcement that it will be distributing new PAYGo and Muve Music plans and devices at Best Buy, as this marks a major new retail expansion for Leap and is the first time that its services have been available nationally. The distribution of these plans is made possible by Leap’s wholesale agreement with Sprint to provide access to its entire network. However, the new plans may lead to some confusion among potential customers in existing Leap markets, as Best Buy can only sell the new PAYGo/Muve plans and devices and not any existing native market Leap products and services.
• Vendor Importance: High to Leap, because the carrier needed to take advantage of the wholesale agreement that it signed with Sprint to offer its services on a national basis. Offering Leap products nationally should greatly expand Leap’s potential prepaid customer base with PAYGo and Muve Music offerings. In addition, the retail distribution deal with Best Buy is a good start for Leap in expanding the range of retail touch points for its potential customers. However, expanding its retail distribution is still risky for Leap as it may need to expend significant resources in new markets to help make its products better known.
• Market Impact: Moderate on the wireless services market, as Leap is not making its full range of Cricket offerings available on a national basis. Rather, the carrier is launching the new plans without unlimited calling capabilities. As a result, this launch will not be much of threat to prepaid unlimited providers in non-Leap markets. However, prepaid providers with monthly plans in the $25 to $35 range – such as Virgin Mobile, TracFone Straight Talk and T-Mobile - may see additional competition from Leap with its new plans and national Best Buy presence.
CLIENTS ONLY
Current Perspective
Competitive Strengths and Weaknesses
Response & Recommendations
Buyer Actions
Analytical Perspective
| Client access - Full report in Consumer Services U.S. | More information
Top
Top
|
 |
|
Current Analysis Offices
Washington, D.C. +1 703 404 9200, Toll free 877 787 8947
Paris, France +33 (0) 1 41 14 83 15
© 2012 Current Analysis Inc. All rights reserved. | Privacy Policy
|
|
Cricket to Introduce Unique New Nationwide Cricket Products Into Best Buy and Best Buy Mobile Locations Nationwide
~ Muve Music Leads Cricket Products into Best Buy ~
~ Company Unveils New Monthly Service Plans, Soon to be Available in Best Buy and Best Buy Mobile Specialty Stores Nationwide ~
SAN DIEGO, Sept. 22, 2011 - Cricket Communications, Inc., a leading provider of innovative and value-driven wireless services and a wholly-owned subsidiary of Leap Wireless International, Inc. (NASDAQ: LEAP) and Best Buy, the nation's largest consumer electronics retailer, today announced the upcoming introduction of Muve Music and new, all-inclusive nationwide Cricket monthly voice products into more than 1,300 Best Buy and Best Buy Mobile specialty stores nationwide. These new products, will be available beginning Sunday, September 25, enable Cricket to bring its industry-leading value proposition to an expanded nationwide audience. The announcement is part of Cricket's major retail expansion announced today that will result in Cricket products and services being available to consumers in additional markets across the country.
"Our partnership with Best Buy, one of the country's most trusted names in national retail, will allow Cricket to significantly expand our distribution footprint nationwide with products like our popular music service Muve Music which is among the fastest growing music services in the country," said Doug Hutcheson, president and chief executive officer of Leap. "These products feature nationwide coverage and no contracts. Several of them are being offered by Cricket for the first time and are customized and unique to Best Buy."
Cricket's fast-growing music service Muve Music, that is winning the praise of customers and critics alike, will headline the selection of Cricket's products and services in Best Buy. Ultimately, three handsets will be available with Muve Music at Best Buy for the holiday shopping season. The recently launched Samsung Vitality smartphone will be available for $199.99 (MSRP). In addition, Muve Music will be available on the newly-launched ZTE Score smartphone for $129.99 (MSRP). A new Muve Music feature phone will also be introduced in Best Buy, the ZTE Chorus, which will be available later this year at $99.99 (MSRP).
With the Muve Music Smartphone rate plan, Best Buy customers will enjoy unlimited song downloads, ringtones, and ringback tones, as well as nationwide calling; unlimited text, picture, video messaging and 3G mobile data; mobile video; data back-up, and 411 assistance all for just $55 per month. The Muve Music feature phone rate plan in Best Buy will be available for $45 per month.
In addition, Cricket is introducing two additional standard feature phones at Best Buy, the Huawei Pillar ($69.99 MSRP) and the Samsung Chrono ($39.99 MSRP). The Pillar features a QWERTY keyboard for fast and easy text and picture messaging. Customers can enjoy easy talk and test with one simple flip with the Samsung Chrono.
Both feature phones will be available on two new Cricket PAYGo service plans at $25 and $35 per month. Both plans include unlimited text, picture and video messaging and unlimited mobile web. The $25 plan includes 300 minutes of US calling per month while the $35 plan includes 1,000 minutes of US calling.
Standard PAYGo Rate Plans Muve Music Rate Plans
$25/month $35/month Feature Phone
$45/month Smartphone
$55/month
Unlimited Text
Unlimited Picture Msg
Unlimited Video Msg
Unlimited 3G Mobile Web
300 Minutes U.S. Talk
Unlimited Text Msg
Unlimited Picture Msg
Unlimited Video Msg
Unlimited 3G Mobile Web
1,000 Minutes U.S. Talk
Unlimited Song Downloads
Unlimited Ringtones
Unlimited Ringback Tones
Unlimited Text Msg
Unlimited Picture Msg
Unlimited Video Msg
Unlimited 3G Mobile Web
1,000 Minutes U.S. Talk
Unlimited Song Downloads
Unlimited Ringtones
Unlimited Ringback Tones
Unlimited Text Msg
Unlimited Picture Msg
Unlimited Video Msg
Unlimited 3G Mobile Web
1,000 Minutes U.S. Talk
Cricket Feature Phones Cricket Muve Music Phones
Samsung Chrono M.S.R.P $39.99
Huawei Pillar M.S.R.P $69.99
ZTE Chorus - $99.99 ZTE Score - $129.99
Samsung Vitality - $199.99
About Cricket
Cricket is the pioneer of simple and affordable unlimited wireless services with no long-term commitments or credit checks required serving approximately 5.7 million customers. Cricket products are available nationwide. Cricket offers wireless voice and broadband Internet services over the latest technology, high-quality, all-digital 3G CDMA2000 1X and 1xEV-DO wireless network. Cricket's nationwide wireless voice service plans include unlimited anytime minutes, unlimited U.S. long distance, unlimited text and picture messaging, unlimited text to Mexico, unlimited Mobile Web, unlimited directory assistance, as well as a variety of calling features and feature-rich mobile applications such as popular games, ringtones and wallpapers. For more information on Cricket, visit www.mycricket.com. Cricket is offered by Leap Wireless International, Inc., headquartered in San Diego, Calif. For more information on Leap, visit www.leapwireless.com.
