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Sprint cuts rates in half to win AT&T, Verizon customers

Sprint’s latest plan to compete with its two larger rivals? Woo AT&T and Verizon customers by offering to cut their phone bills in half if they switch to Sprint.

The Overland Park, Kansas company announced that deal on Tuesday, promising “unlimited talk and text” and a matched data allowance at half the rate of what current Verizon and AT&T customers are currently paying for their monthly plans. Billing it as “The Cut Your Bill in Half Event,” Sprint also promised to pay up to $350 toward customers’ early termination fees or installment bill balances in an offer that will officially launch on Friday.

Sprint (S) CEO Marcelo Claure called it “the best value in wireless” in the company’s announcement. “It’s as simple as this: Bring Sprint your Verizon or AT&T bill along with your phone and we’ll cut your rate plan in half. That’s a 50 percent savings on your rate plan every month. And this great deal is not just a promotion. This will be the customer’s ongoing price,” Claure said in a statement.

The limited-time offer is a sign that Sprint, the nation’s third-largest mobile carrier, now sees price competition as the best way to battle AT&T (T) and Verizon (VZ). Earlier this year, Sprint and its parent company — Japan’s SoftBank — backed off a $32 billion plan to purchase smaller carrier T-Mobile US (TMUS) after the two sides failed to reach a deal that could have created a larger mobile company better suited to take on AT&T and Verizon.

Interestingly, Sprint’s new rate offer does not extend to T-Mobile customers.