Now That's a Loyalty Program: Boost Shinks Bill for Prompty Payment and Retention

I'm pleased to report that the US market appears to be entering another round of price cuts by carriers. T-Mobile is about to announce a range of more affordable and flexible pre-paid plans. That's good news.

But what really caught my eye this morning was Boost Mobile's novel loyalty and retention plan that reduces the cost of subscriber bills if they pay on time:

The no-contract wireless service on the Nationwide Sprint Network now offers its customers the opportunity to reduce their $50 monthly unlimited plan to a monthly price of $35 by simply making on-time payments. For every six on-time payments, a customer's monthly cost will shrink by $5, eventually getting down to $35 a month for unlimited nationwide talk, text, Web, e-mail, IM and calls to 411. 

It will take users 18 months to get to the $35 dollar level. But what a deal for unlimited service -- and what a smart loyalty/retention program. The catch here is that the phones associated with this deal are low-end phones, save the lone Motorola Android device (which is itself a second-tier Android handset).

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The thing that will allow carriers to retain post-paid customers and prevent them from switching to lower cost plans like this is a selection of higher end devices and, in the future, access to faster versions of their networks. Regardless I would expect this Boost program to be quite successful. 

Boost is owned by Sprint, as is VirginMobile (in the US), the company's other pre-paid carrier.