Tacks on a $10 'premium data charge' to 3G Everything data plans as customers test the limits of unlimited data

Sarah Thomas, Director, Women in Comms

January 18, 2011

2 Min Read
Sprint Raises 3G Prices to 4G Levels

Sprint Corp. (NYSE: S)'s 3G smart phones will soon get the same treatment as its 4G phones. The third-largest carrier in the U.S. is tacking on a $10 "Premium Data add-on" to its $69 unlimited data plans for activations of any smart phone beginning January 30.

Sprint announced the change in a press release angling to buy consumers' sympathy about the wireless data explosion to justify the rate hike. It said that the premium charge will assist it in "offering simple and affordable unlimited plans for its customers while maintaining a wireless network able to meet the growing appetite for a richer mobile experience."

Existing Sprint smart phone users won't be affected, unless they upgrade to or activate another smart phone. The charge doesn't apply to plans on data cards either.

Why this matters
Sprint's WiMax customers on the High Tech Computer Corp. (HTC) (Taiwan: 2498) Evo and Samsung Corp. Epic already pay an extra $10 for 4G speeds, a pricing decision that irked a lot of Sprint's early adopters. So, while applying the fee to 3G may be understandable given the depths to which some users are pushing unlimited usage allowances, the fact that it's occurring on a slower network is likely to elicit more grumbles.

Its unlimited plans have been popular too, helping Sprint add 354,000 new subscribers with two-year contracts in the third quarter. (See Sprint Gives 'Leapfrog' Details.)

Bob Johnson, Sprint's president of consumer business, points out in the release that some of its competitors (namely AT&T Inc. (NYSE: T)) impose overage charges and "complex plans," which Sprint is trying to avoid at all costs. With the $10 increase, Sprint's Simply Everything plans still come in below comparable plans at AT&T and Verizon Wireless , but are higher than T-Mobile US Inc. . (See AT&T Intros Mobile Data Caps.)

All four of the nation's leading carriers, along with their smaller competitors MetroPCS Inc. (NYSE: PCS) and Leap Wireless International Inc. (Nasdaq: LEAP), are grappling with how to address skyrocketing data usage, and T-Mobile and Verizon will ultimately have to decide whether to follow Sprint into increased, albeit unlimited prices, or track AT&T into tiered plans and usage caps.

For more
Sprint has been driving home its unlimited message even as its competitors move to tiered pricing. For more on the carrier price wars, check out the following stories:

  • MetroPCS Continues 4G Price War

  • Sprint Sticks With Unlimited Data Plans

  • AT&T Enforces Data Cap on Femtos

  • Verizon's Advantages: Unlimited Data & Android

  • Capping the Data Gusher

  • No Surprise: Verizon Talks Tiered Pricing for LTE



— Sarah Reedy, Senior Reporter, Light Reading Mobile

About the Author(s)

Sarah Thomas

Director, Women in Comms

Sarah Thomas's love affair with communications began in 2003 when she bought her first cellphone, a pink RAZR, which she duly "bedazzled" with the help of superglue and her dad.

She joined the editorial staff at Light Reading in 2010 and has been covering mobile technologies ever since. Sarah got her start covering telecom in 2007 at Telephony, later Connected Planet, may it rest in peace. Her non-telecom work experience includes a brief foray into public relations at Fleishman-Hillard (her cussin' upset the clients) and a hodge-podge of internships, including spells at Ingram's (Kansas City's business magazine), American Spa magazine (where she was Chief Hot-Tub Correspondent), and the tweens' quiz bible, QuizFest, in NYC.

As Editorial Operations Director, a role she took on in January 2015, Sarah is responsible for the day-to-day management of the non-news content elements on Light Reading.

Sarah received her Bachelor's in Journalism from the University of Missouri-Columbia. She lives in Chicago with her 3DTV, her iPad and a drawer full of smartphone cords.

Away from the world of telecom journalism, Sarah likes to dabble in monster truck racing, becoming part of Team Bigfoot in 2009.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like