Business Model Archive

Sprint Nextel, through its Virgin Mobile brand, has announced a pretty big shift in its business model by offering new prepaid plans that begin at a mind-blowing $25 a month. Starting on May 12, three new Beyond Talk plans will include unlimited messaging, email, data, and web, as well as 300 minutes ($25), 1,200 minutes ($40), or unlimited minutes ($60) of talk time. And that ain't all -- BlackBerry data service can be added for an additional $10. Of course, you'll be paying full price for your phone, but at least the selection is indeed better than the usual pre-paid fare, including the Blackberry Curve 8530 ($300) and LG Rumor Touch ($150). We don't know how the other carriers are going to respond, but this does prompt the question: would you put up with Sprint's handset selection for a plan this cheap? PR after the break.

Update: The Wall Street Journal has it that Sprint is also fixing to launch an entirely new prepaid brand, and while it declined to share a name for the new branch, it did confess that it "will let customers pay upfront for cell service by the minute rather than signing up for a month at a time." As you may expect, it'll be aimed at "middle-aged Americans who only use cellphones occasionally to make calls," and it'll join Boost Mobile, Assurance Wireless and Virgin Mobile in Sprint's rapidly expanding stable of prepaid sub-brands. Is it difficult to tell these guys love the prepaid and can't quite figure out how to make ends meet on the postpaid side? Nah...