Wednesday, January 19, 2011

“Re-Evaluating Sprint's Unlimited Data Plan in Light of New $10 Fee”

“Re-Evaluating Sprint's Unlimited Data Plan in Light of New $10 Fee”

Re-Evaluating Sprint's Unlimited Data Plan in Light of New $10 Fee

Posted: 19 Jan 2011 10:06 AM PST

Bargain hunters looking for a good price on smartphone data plans will have to reconsider whether Sprint is still a good value. Sprint announced Wednesday a 14 percent price hike effective Jan. 30. The Sprint smartphone data plans that now cost $70 per month will jump to $80. This price increase is applicable only to data plan subscribers who do not have 4G phones. 4G owners are already paying a premium for data plans.

Sprint will honor existing term contracts but if a current customer seeks to add or upgrade coverage, the new charge will apply.

The $10 monthly increase is being cast as a premium data add-on charge, so Sprint can still advertise low prices, according to PC World.

PC World calculated the best bargains available in data plans in light of the Sprint price hike. Verizon and AT&T came out on top. The Verizon plan, like Sprint, allows unlimited data whereas AT&T imposes a 2G limit.

The Wall St. Journal says Sprint's price hike is linked to increased data usage. Smartphone users tend to be data hogs, using 10 times as much as traditional cell phone users. The growth in data use requires continual upgrading of networks to accommodate increased demand. Having built its reputation around unlimited data plans, Sprint would be hard put to discard them in favor of plans with limits.

It's not just monthly service costs that determine whether a smartphone is a bargain, of course. MSNBC analyzed the comparative costs of two-year contracts offered by different carriers, taking into account the phone price, the monthly fees and add-on charges. Sprint and T-Mobile came in the lowest at $1,680, while other plans exceeded $2,000. Customers who might terminate a contract early need to be especially cautious in choosing a carrier; Verizon, for example, charges a termination fee of $350 plus $10 per month for each month on the plan. AT&T charges $325 plus $10 per month for each month on the plan. Sprint and T-Mobile charges for early termination were identical at $200 plus $10 per month on the plan.

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