Sprint eyes expansion of unlimited call plan trial

Sprint eyes expansion of unlimited call plan trial
Wed Sep 19, 2007 11:21am EDT

NEW YORK, Sept 19 (Reuters) - Sprint Nextel Corp (S.N: Quote, Profile, Research), the third-biggest U.S. mobile phone service provider, is likely to expand its test of an unlimited calling plan that competes with rivals Leap Wireless (LEAP.O: Quote, Profile, Research) and MetroPCS.

While Sprint is not ready for a national launch of such a service plan -- which often serves customers with low credit ratings who do not want to commit to contracts -- Chief Executive Gary Forsee said the trial was going well enough to expand it.

He told a Goldman Sachs investor conference on Wednesday that he was optimistic rather than cautious about the plan, adding that Sprint had been initially concerned that it would hurt growth of more valuable customers who sign contracts.

"We'll likely flex our muscles a bit," Forsee said, referring to an extension of the trial. He did not give additional details.

Noting that Sprint had not previously been able to compete directly with MetroPCS and Leap, Forsee said the service would be a good way for his company to target customers with subprime credit ratings.

"We think this is a good place for subprime to be directed," he said.

MetroPCS made an unsolicited offer to buy Leap on Sept. 4. Leap rejected the offer on Sunday, but analysts widely expect the companies will eventually combine.

Forsee said such a deal would not affect Sprint's plans.

"The fact they're coming together I don't think made that much of a difference," he said.