Sprint Corp.’s share price down, to offer a “cut your bill in half” discount, entering a price war with larger rivals

The third-biggest wireless carrier in the U.S., Sprint Corp., is entering a fierce price war with its major competitors Verizon Communications Inc. and AT&T Inc., as it revealed its intentions to reduce customer bills by 50% for those clients, who switch to its services from the carriers larger rivals.

The U.S.-based company also said that it intends to provide its subscribers, who have chosen its services, with unlimited talk and text, as well as with as much data as they have been provided by their contracts with AT&T and Verizon.

Verizon and AT&T subscribers, who want to shift to Sprints services, will have to upload their latest bill online. A copy of the bill will have to be brought to a Sprint store. The offer is to take effect from Friday (December 5th).

The decision to cut customer bills is a part of the U.S.-based wireless carriers stategy to lure new subscribers and expand reach. Sprint is the only wireless carrier in the U.S., which is losing the profitable monthly subscribers on balance. The Chief Executive Officer of the company, Marcelo Claure, has been trying to put an end to more than seven years of customer withdrawals.

The move is considered to rely to a great extent on marketing, because a lot of switching customers are likely to miss fine print about the large discounts.

Sprint Corp. was down 3.08% to close at $4.72 per share yesterday, marking a one-year decrease of 42.44%. The company is valued at $19.27 billion. According to CNN Money, the 22 analysts offering 12-month price forecasts for Sprint Corp. have a median target of $5.50, with a high estimate of $9.50 and a low estimate of $4.00. The median estimate represents a +16.53% increase from the last price of $4.72.