How to get away with paying $25 a month for cellphone service

January 7, 2014

(Gene J. Puskar/AP)

Sprint is launching a new rate plan that encourages you to rope your friends and family — "Framily" — into your account for up to a $30 discount.

Here's how the plan works: If you sign up for one line, you'll pay $55 a month for unlimited talk, text and 1 GB of data. But add more users to your account, and each additional subscriber cuts $5 off the monthly price.

Under the program, a group of seven would be paying $25 a month per person — not a bad deal at all. From there, each of the seven subscribers could individually customize their own add-ons, such as an unlimited data plan for an extra $20 per month.

Once you start a Framily plan, though, the clock starts ticking: New customers have 14 days to recruit other members into the plan before the rates get locked in.

In unveiling the offer, Sprint CEO Dan Hesse signaled that while unlimited data would remain an option for existing customers, the company might not extend unlimited data to new customers forever, according to Reuters.

Reached Tuesday evening, a Sprint spokesperson reiterated that the company's unlimited guarantees would hold so long as subscribers "remain a customer in good standing."

Brian Fung covers technology for The Washington Post, focusing on telecom, broadband and digital politics. Before joining the Post, he was the technology correspondent for National Journal and an associate editor at the Atlantic.
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