The prepaid wireless service provider’s shares plunged 10.85 percent to $6.41 by early afternoon.
MetroPCS added just 317,000 new subscribers as competition heats up in the prepaid space. As the economy has ailed, the market for inexpensive, no-contract cell plans has boomed. That’s pushed providers to undercut one another dramatically – take, for example, Boost Mobile’s $50 unlimited plan introduced a year ago. And that practice has created razor-thin margins for providers, leading to questions about the viability of the prepaid market, especially as AT&T Inc. and Verizon Wireless gain traction in the same sector.
Still, MetroPCS is in the fight. The company unveiled new pricing plans and the cheapest tops out at $40 – $10 less than rival Boost.