Can Sprint (NYSE:S) Compete on Price in Mobile Segment?

Sprint's (NYSE:S) strategy of unlimited mobile data service for $69.99 a month is a compelling one, and sure to grow customers for them.

At this time Sprint is the price leader in the space, as Verizon (NYSE:VZ) charges more for the service and AT&T (NYSE:T) no longer offers it.

Teresa Kellett, director of 4G at Sprint said this, “Our ability to offer unlimited 4G we think is the best way to get people to use it. We want to get people in that mode of experiencing the Internet like they would at home or at the office.”

The challenge for Sprint is whether or not their business model is sustainable in light of meeting service demands of customers. If low price results in low-quality service, their strategy could backfire.

There are questions as to whether or not Sprint actually has the lower cost structure to implement the strategy over a long period of time, or until they reach their goals.

It's unclear as to whether or not expenses will be able to work hand-in-hand with the price offered. We'll find out in the not-too-distant future if they can.

If they can, Sprint will grow market share.

Sprint closed Friday at $4.68, gaining $0.03, or 0.65 percent.