Cricket Will Test Consumer Willingness to Forego Subsidies on iPhones

We are about to get a clear test of consumer willingness to pay full retail prices for “hot” devices such as the Apple iPhone. Cricket Communications will be the first prepaid service provider in the U.S. market to offer iPhone to its customers.

Beginning on Friday, June 22, 20012, Cricket will offer iPhone 4S and iPhone 4 with its $55 per-month, all-inclusive unlimited talk, text and data plan. The issue is that consumers will have to pay full retail prices for their devices.

The Apple iPhone 4S will be available for $499.99 for the 16GB model and iPhone 4 will be available for $399.99.

That is significant as mobile service providers just about everywhere are looking for ways to reduce the amount they spend on handset subsidies, hopefully without placing themselves at a disadvantage in the continual task of attracting new customers, most of whom have to be taken away from another service provider.

So Cricket’s sales volume will be a key indicator of consumer willingness to buy devices without major subsidies.

"Our customers want the best products available and we are excited to bring iPhone to our pre-paid consumers with an industry leading $55 per-month service plan," said Doug Hutcheson, Leap Wireless president and chief executive officer.

iPhone 4S and iPhone 4 will be available in Cricket company-owned stores and select dealers in nearly 60 markets, online at www.mycricket.com/iphone and over the phone at 800-853-7682.