Boost Mobile launches pre-paid plan with unlimited talk-time

Boost Mobile has announced the details for it’s new US pre-paid plan. The plan includes unlimited anytime calling, text messaging, wireless Web and walkie-talkie services. There’s also no added fees for activation, roaming or long-distance.

The entire package costs 50 dollars. Boost claims to have superior network coverage, saying that it has fewer dropped calls than competitors.

From the release:

“Wireless consumers know there’s a lot of wrong out there – activation fees, overage charges and extra costs for services like voicemail and roaming. Unlike some other prepaid services, our new flat-rate plan will not include any of these charges; what you see is what you get,” said Matt Carter, president of Boost Mobile.  “The Boost Mobile Monthly Unlimited plan offers consumers straightforward pricing and predictable payments on a true nationwide network with no restrictions of a local calling area.”

“The Monthly Unlimited plan is another example of how the differences between prepaid and postpaid plans are becoming more and more blurred,” said William Ho, research director for wireless services at Current Analysis. “We’ve seen the introduction of affordable unlimited calling plans on the postpaid side, and now Boost is making it even more reasonable to get unlimited calling plus texting, walkie-talkie and Web browsing, all without a contract. Especially during this recession, consumers are beginning to look at what prepaid plans, such as Boost’s, have to offer them.”

What we think?

This was one of the more aggressive press releases I’ve ever seen. Four times Boost mentioned how it’s better than competitors MetroPCS and Cricket. Is it justified? On paper, the plan looks great. 50 dollars a month for unlimited calls and text is good value if there really are no hidden charges, even though data charges aren’t included.

This kind of price slashing on pre-paids is becoming something of a trend. I only have one question. Won’t this kind of limitless, pre-paid plan just encourage churn? If your contract-less plan is as good as your contracted one, what reason is there to stay with any one provider?