Sprint adds $10 Premium Data fee to all smartphones

Sprint ups fees, charges for “Premium Data” on smartphones

http://newsroom.sprint.com/images/9004/Premium-Data-Value-Comparison.pdf

Sprint Newsroom | Smartphones Drive Wireless Data Explosion


18 January 2011
Smartphones Drive Wireless Data Explosion
Sprint takes step to ensure customers continue to enjoy unlimited data while on the Sprint Network, without overages

Smartphone penetration is expected to double during the next four years.1
Market share for Google’s Android operating system grew by 23 percent last year alone.2
Mobile data traffic is forecast to double worldwide each year through 2014.3

OVERLAND PARK, Kan. (BUSINESS WIRE), January 18, 2011 - Today’s ability to do more things on the go – such as watching videos, sharing pictures or checking directions – is not only changing the way we live; it is driving exponential growth of mobile data traffic.

Sprint (NYSE: S) is committed to providing its customers a great wireless experience now and in the future. From its packed portfolio of innovative phones and devices to its leadership in introducing 4G services, to its consumer-friendly Everything Data plans, featuring unlimited text, Web and calling to any mobile phone, Sprint offers the best value in wireless.

Sprint will increase its postpaid rates by applying a $10 per month Premium Data add-on charge to activations of smartphones beginning Jan. 30. The charge will assist Sprint 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. Subscribers with smartphones will still receive the best value in wireless, including the Any Mobile, Anytime feature offered nationwide only by Sprint.

Sprint also offers a full range of traditional feature phones, including popular eco-friendly or touch-screen handsets that do not require the Premium Data add-on charge but still have a great range of capabilities with voice, text and data access. Existing Sprint smartphone customers are not affected unless they upgrade to or activate another smartphone.

“Sprint wants its customers to experience the range of entertainment and productivity possibilities available with today’s wireless technology,” said Bob H. Johnson, president of Sprint’s consumer business. “While some of our competitors impose overage charges and complex plans, Sprint continues to provide a worry-free, unlimited data experience while on the Sprint network. This is responsible, sustainable and reflects our commitment to simplicity and value.”

“Sprint’s decision to apply the Premium Data add-on charge to activations of smartphones going forward recognizes the enhanced user experience that today’s smartphones deliver, which, in turn, drives substantially higher data usage and cost,” said Roger Entner, analyst and founder of Recon Analytics.

“Building, maintaining and expanding wireless data networks isn’t free – there are real costs involved. In effect, Sprint has chosen to increase the price of its unlimited Everything Data plans, which is still below that of its major competitors, for the segment of customers – smartphone users – who are using wireless data the most and are driving up costs. Consumers have many choices. They can choose unlimited, worry-free data plans on the Sprint network or they can have tiered, metered plans and overage charges with other wireless carriers.”

Smartphone customers use, on average, 10 times more data than users of traditional feature phones. Smartphone users have access to more data capabilities, applications and other functionality than traditional feature phones. Examples include access to thousands of applications and games through online marketplaces and full HTML Web browsing with Adobe Flash technology that allows users to browse the Internet on their devices just like they can at home or in the office.

Sprint defines smartphones as devices with robust operating systems that deliver a rich wireless experience by bringing the full function of mobile applications and programs to life, including Blackberry, Android, Windows Mobile, Palm, and the Instinct family of devices. The Premium Data add-on charge previously applied to HTC EVO 4G, HTC EVO Shift 4G and Samsung Epic 4G devices.

“Sprint continues to be the carrier for people who want to do more than just talk with their wireless devices,” said Johnson. “Customer growth on our 3G and 4G networks, exponential increases in the use of mobile data applications, and the growing use of smartphones is proof that consumers are getting the message.

“Sprint’s unlimited data plans, with or without the $10 charge, continue to beat the offerings of our top national competitors, who cap users’ data, charge data overages, and do not offer the unique functionality of Any Mobile, Anytime, which gives subscribers on the Sprint network unlimited calling to any other wireless user in America regardless of carrier.”

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 48.8 million customers at the end of the third quarter of 2010 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, Common Cents Mobile and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Newsweek ranked Sprint No. 6 in its 2010 Green Rankings, listing it as one of the nation’s greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at Cell Phones, Mobile Phones & Wireless Calling Plans from Sprint or Sprint | Facebook and Sprint (sprint) on Twitter.

1 Heavy Reading, Assessment of Sprint’s Network Vision Initiative, by Berge Ayvazian, Dec. 10, 2010.

2 Ibid.

3 Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2009-2014.



Contact(s):
Sprint
Media Relations
Cristi Allen, 913-315-1092
cristi.i.allen@sprint.com
Emmy Anderson, 913-707-0618
emmy.anderson@sprint.com

 

This confuses me. Sprints whole game is that they are cheaper than the rest. This is a terrible move.

 

I just don't understand this move. If you apply some sort of promo or discount to a vzw line, you might even be cheaper than Sprint now. 9 times out of 10, I would pick vzw over Sprint.

 

Welcome to Verizon ;-)

 

Doesn't affect me, as I already pay it for 2 EVOs. The 3rd line will always be a cheap clamshell phone for my mom. I already was not thrilled about the extra $20, but it is worse if you're paying it for a blackberry, etc.

Right now, with a $10 discount due to crappy Las Vegas coverage and 15% State of Delaware discount, my bill is roughly $170. We don't use anytime minutes thanks to Any Mobile Anytime. I use about ~300 minutes total (all mobile or weekend), my partner uses about ~300, and my mom uses ~800.

We could pay around $80 on Virgin Mobile and get the same thing! Two lines aren't up until 2012, but one is up in July 2011. I think I won't renew that line and just switch us over in 2012. The $25 Virgin plan with 300 minutes and unlimited web/text/data is cheap as is the 1500 minute $30 plan! Why should I be paying Sprint an extra $100 for a bunch of minutes we don't need? We'd only be missing out on cool phones, but that is not worth that money. To top it off, my line should get an upgrade in October, and that is going away too. They're charging more and delivering a lot less. Still better than T-Mobile, whose coverage is pathetic in the old Omnipoint markets IMO. But not better than the prepay options out there.

Their own prepaid might kill them at this point.

 

It was going to happen through attrition anyway. At some point, all Sprint smartphones will have WiMax and everyone would be paying the extra $10, anyway. This way they do it without people complaining that they don't have WiMax coverage in their area, but still have to pay the $10 since they'll only be providing 4G smartphones.

 

If I upgrade my two lines, my bill would be $6 dollars less than what I was paying with AT&T

WIth att, my MMS's were coming in 8 hrs late, some getting permanently lost out there....some holes because of the no roaming. With Sprint, airave at home for usable coverage

 

What is incredibly astonishing is that they are charging this $10 premium data fee on Iden smartphones as well. Top speed of around 19kb/sec is hardly premium. Lame, indeed.

 

I guess I will have to use my hero forever to keep the true $69.99 plan. Do they even make a phone anymore that is not a smart phone?