Sprint Talks IPhone, May End Unlimited Data Plans

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http://www.forbes.com/sites/mobiledia/2011/09/27/539/



Sprint may end its unlimited plans if it begins carrying the iPhone 5, despite claiming it offers simplicity and value over other carriers.

The Overland Park, Kan.-based company’s CTO Stephen Bye said it is “open to different business models,” touching on a possible departure from unlimited plans.

Bye indicated Sprint would not continue to offer unlimited plans for the long haul, but he did highlight the benefits the company sees from offering them. Bye said mobile providers who do not have unlimited plans have to field more customer phones calls and complaints, largely because consumers are concerned with overage charges on their bills.

Sprint would love to keep offering unlimited data plans to differentiate itself from its competition, but Bye highlighted the overall consumer shift to data as the biggest hindrance. The growth of smartphones has changed the way networks are built, according to Bye — there is now just as much emphasis on data as there is on voice service when evaluating a service.

Bye’s company has been able to avoid eliminating its unlimited data plans, largely because it has not been carrying the iPhone, the top-selling handset in the U.S. AT&T and Verizon both moved to capped data plans after the iPhone became a part of their networks. Now, with analysts almost certain Apple will announce the iPhone 5 is coming to Sprint on October 4, the carrier may be forced to follow in the footsteps of its competitors.

Sprint is set to hold an event on October 7 where it will announce a “Strategy Update.” The event may be a perfect opportunity for the carrier to talk about the data packages it plans to offer with the iPhone 5 if it ends up getting the device. Bye said he’s not in a position to comment on whether or not the company will sell the device, but thinks the carrier has done tremendously well without it.

The iPhone 5 coming to Sprint may mean that unlimited data plans have to go, but given the amount of business the device could bring the carrier, it may likely prove to be a worthy sacrifice.

This post originally appeared at Mobiledia.

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They better not do this! The whole reason I changed over to Sprint was for the unlimited data plans. If they do this, those with unlimited data plans already better be grandfathered in. Sprint isn't the best service, but it offers good unlimited data packages. If they start capping their data plans, I don't see why people would rather go to Sprint for an iphone. Nothing will make them stand apart from the other 2 carriers anymore. You can get the iphone with at&t and Verizon with better service on your phone. I think it'll leave Sprint to be the odd one out. Iphone with decent service go to at&t or Verizon. Want a cheaper plan? Go to T-Mobile. What reason would people have to go to Sprint then?

The iphone would be great on Sprint, but if it means getting rid of unlimited data I say eff the iphone lol. No hate against iphones, I just don't wanna see the unlimited data go.

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Thanks 2 my friend Silent Killa @ BTNHBOARD for sharing this article.

NEW YORK (AP) — Sprint Nextel Corp. has committed to buying more than 30 million iPhones over the next four years, imposing a heavy burden on an already cash-strapped company, according to a report published Monday.

The Wall Street Journal's online edition attributed the report to unnamed sources. Apple Inc. is expected to a reveal the first new iPhone model in more than a year on Tuesday.

The paper previously reported that Sprint Nextel Corp. will sell the iPhone, which has been exclusive to AT&T Inc. and Verizon Wireless.

In Monday's story, the Journal said CEO Dan Hesse had told Sprint's board that the company would lose money on the deal until 2014. Sprint has posted a loss for every quarter since 2007.

Sprint shares fell 31 cents, or 10.2 percent, to close at $2.73, a three-year low.

Apple and Sprint did not respond to requests for comment.

Sprint, the country's third-largest wireless carriers, is losing subscribers to the two bigger wireless companies. The fact that Sprint hasn't been able to sell the iPhone is one of the main reasons. The Journal said the board considered the chance to sell the iPhone as a make-or-break proposition.

Sprint has 33 million subscribers on contract-based plans, so its reported commitment means it would have to convert half of them to iPhones, assuming they upgrade after two years.

At current prices 30 million iPhones would cost Sprint about $20 billion. Assuming it charges $200 for them, Sprint's iPhone sales could amount to about $6 billion. The company hopes to make up the difference on contract sales and service.

Currently, Sprint buys phones for about $7.4 billion per year. Its iPhone commitment corresponds to spending two-thirds of that on iPhones every year.

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No iphone 5 but it's iphone 4S.