According to a recent report by the Wall Street Journal, Sprint Nextel, the parent company of Assurance Wireless, relies quite heavily on its low-income prepaid subscribers for growth. The Wall Street Journal reported that over half of Sprint Nextel’s new subscribers come from their government subsidized Assurance Wireless brand. Assurance Wireless provides free cell phones and cell phone service to low income families and households that participate in government assistance programs, such as Food Stamps or Section 8.
Assurance Wireless launched in 2010 and has quickly become America’s fastest growing Lifeline subsidized free government cell phone provider. Assurance Wireless has not made public how many customers they have, but experts estimate that they have close to two million subscribers, making Assurance Wireless the second largest free cell phone provider in the USA. Presently, Assurance Wireless operates in 30 states and has plans to expand its service to additional states in the near future.
Despite Sprint Nextel’s heavy reliance on Assurance Wireless for growth, not all of their new customers result from the Assurance Wireless program. Sprint spent 15.5 billion dollars over four years to have the privilege of selling Apple’s iPhone to their subscribers. Apple’s phone has brought in many new customers that would have otherwise signed up for T-Mobile or Verizon.
“Unfortunately, there’s a large market of customers who are eligible based on their poverty level,” John Carney, Sprint’s senior vice president of consumer marketing, told the Wall Street Journal. “This is not a customer, without subsidy, we would have gone after originally. We wouldn’t have been able to make money.”
To learn more about getting a free government cell phone from Assurance Wireless, please click the link below: