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Stephen Stokols, who previously founded prepaid brand FreedomPop,
said in an interview that Boost has the potential to be as
"disruptive" as U.S. carrier T-Mobile US Inc, which developed a
reputation for shaking up the industry by setting precedents
such as ending the traditional two-year phone contract.
Dish, a satellite television and internet provider, bought Boost
Mobile in April as part of the merger between wireless carriers
T-Mobile and Sprint, which owned Boost.
While most U.S. wireless customers pay recurring phone bills at
the end of the month on postpaid plans, prepaid users pay for
phone service upfront. The plans often appeal to lower-income
customers as they do not require a credit check.
Boost aims to expand its digital operations to sell more of its
phone plans online, Stokols said. Currently, Boost primarily
sells plans at its large number of stores across the country.
The wireless industry has increasingly focused on selling phone
plans with unlimited talk, text and data, but some wireless
customers use small amounts of data on their smartphones.
"If you look at the data for users, most use under five
gigabytes a month. There's a huge opportunity to deliver value
by offering plan flexibility that addresses that," Stokols said,
declining to offer specifics.
Rival wireless carriers are also ramping up investment in
prepaid at a time when many Americans are cutting monthly
expenses during the coronavirus pandemic.
Last week, Verizon Communications Inc bought Tracfone, the
largest prepaid brand in the United States, for $6.25 billion.
(Reporting by Sheila Dang; Editing by Steve Orlofsky)
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