Sprint Offers 30-Day Money-Back Guarantee to Take On T-Mobile

Jun 23, 2014 4:31 pm ET

June 23 (Bloomberg) -- Sprint Corp. said new customers can now drop its service within 30 days with no penalty, raising the stakes after T-Mobile US Inc. introduced a seven-day trial period with Apple Inc.’s iPhone.

Sprint, the third-largest U.S. mobile-phone company, previously had a 14-day grace period for unhappy customers to walk away. The extended timeframe begins on June 27, the company said today in a statement.

Sprint is jockeying to compete against T-Mobile’s aggressive marketing, which has made the fourth-largest carrier the fastest-growing mobile service in the U.S. T-Mobile has gained subscribers by financing phone purchases and buying out contract penalties for customers who switch service. Sprint has mimicked both of those tactics.

Sprint has been struggling to catch up with Verizon Communications Inc. and AT&T Inc. in network upgrades. To mark its progress, Overland Park, Kansas-based Sprint announced today that it has faster long-term evolution, or LTE, networks in 28 new cities, extending its coverage to 471 markets.

Sprint also announced an exclusive deal to sell a Samsung Electronics Co. phone designed for fitness enthusiasts. The Galaxy S5 Sport has maps to track workouts, sensors to monitor heart rates and a barometer.