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Sprint has killed one of the few advantages it network has -- unlimited tethered data.  (Source: Paramount Pictures)
Smartphones will still be "unlimited"

Sadly the rumors of the demise of unlimited tethering data on Sprint Nextel Corp.'s (S) network are true.  The company announced via a support post that it would be making "effective beginning with your next bill following notification", which would in essence kill unlimited 3G and 4G data on tablets, wireless modems, and smartphone hot spots.

"Unlimited" has long been Sprint's big selling point and it's a selling point that the company's ads continue to harp on:  


Now -- as the carrier has long warned could happen -- a big chunk of the company's unlimited plans are about to die.  Sprint announced that it will be capping most of its existing connections at 5 GB of 3G and 4G use.  Past that, you will pay $0.05 USD per MB ($51.20 USD per GB).  When roaming on non-Sprint networks you'll only get a 300 MB allowance and will have to pay $0.25 USD per MB ($256.00 USD per GB).

New users can opt into a lower 3 GB plan or a higher 10 GB plan (and existing customers will likely be able to call and adjust their plan upwards, albeit at a premium).

Tethering add-on costs ($29.99 USD/month) for existing users will not change for the transitional 5 GB/month package.  But for new users hotspots will cost $45 USD for 3GB, $60 USD for 5GB, and $90 USD for 10GB of combined 3G/4G data.

Sprint Tethering
[Source: Sprint]

These rates are pretty horrific in that they are by far the most expensive in the industry, surpassing even Verizon Wireless's rates of $50 USD for 5GB per month or $80 USD for 10GB per month (Verizon Wireless is a joint venture of Verizon Communications Inc. (VZ) and Vodafone Group Plc. (LON:VOD)).

Factor in that ClearWire's WiMAX network, which Sprint relies upon, is available in far less regions and is generally slower than AT&T or Verizon's LTE networks, this is looking like one horrible move for Sprint and its customers.  ClearWire and Sprint have plans to deploy LTE, but for now essentially Sprint is offering customers an inferior LTE network at the nation's highest price.

The only real saving grace for Sprint is that it adds, "Additionally, if your phone plan contains unlimited data, you will continue to enjoy unlimited data usage on your phone while on the Sprint network."

The shocking news comes shortly after Sprint acquired rights to sell the iPhone and just weeks after the company supposedly reaffirmed its commitment to unlimited data.

But if the death of unlimited tethering doesn't give Sprint customers cause to rethink their plans immediately, it most certainly will give make them pause and reconsider their subscriptions.  After all, if unlimited tethering data has been killed, Sprint's days of being the last provider to offer unlimited smartphone data are likely limited as well.

To add to the disturbing picture for Sprint subscribers, we recently exposed that Sprint was turning a blind eye to text message fraud on its network.  It claims to allow premium service messages  -- which it reportedly profits off of -- only via opt-in, but we revealed that many customers are being charged without ever opting in.

With these changes Deutsche Telekom AG's (ETR:DTE) T-Mobile USA now has the most generous tethering plan, in that it's cheaper than Sprint's new tethering plans and while capped, still allows throttled traffic past the cap.  Of course an acquisition by AT&T is looming so the good times may only roll on T-Mobile USA for a bit longer.

Source: Sprint



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RE: Just curious, how many use tethering?
By Reclaimer77 on 10/24/2011 4:44:12 PM , Rating: 1
I don't think they could have anticipated the explosive growth of "smart phones" and the excessive bandwidth usage that went along with it when they designed their cell infrastructure. Sprint is already spending billions on their next generation network, so I see this as a good move. They are capping something the tiny minority uses so the majority can keep their unlimited phone data plans. Honestly, how many people tether anyway?

Or you can just call them "drug pushers" and greedy fat-cats like everyone else these days...


RE: Just curious, how many use tethering?
By nolisi on 10/24/11, Rating: 0
By artemicion on 10/24/2011 7:38:43 PM , Rating: 2
quote:
connectivity and smart phones are pervasive and critical to our modern day economy.


Even if true, this does not mean that you are entitled to connectivity on an unlimited basis. Gas is also critical to the economy. Don't expect to get that on an unlimited basis either.

quote:
No business nor an individual should have to worry about overages dramatically impacting their fiscal livelihood.


False. Keep track of your usage and your budget. Don't expect the government to bail you out when you're crippled by your wasteful use of data. Just like you shouldn't expect the government to bail you out if you eat 50 donuts a day and, surprise, need triple-bypass.

quote:
They could have built more capacity instead of taking the money and passing it to shareholders while the executive staff soaks up bonuses.


Guess what, you too "could" build a telecom company with "more capacity" and refuse to take money from customers. Try it. I'm sure you'll love it.

quote:
There is no good argument for why tethered devices should have a separate plan...


Yes there is. It's called "supply and demand" and "capitalism." Learn about it.

quote:
This is not drug pushing, the more appropriate terms that I'll introduce you to (since you seem to be unaware of them) is market collaboration and price gouging.


What you described is simply not market collaboration. As for "price gouging," I'll just simply say that the free market tolerates some forms of price gouging. That's why gas is $5/gallon in the mountains. It's called supply and demand. If you think prices should be cheaper, again, start your own telecom company, charge lower prices, and see how that works out for you.


RE: Just curious, how many use tethering?
By monitorjbl on 10/24/2011 5:34:39 PM , Rating: 1
This is pure capitalism in an unregulated market. Why would companies spend money on getting better tech developed so they can host more bandwidth to beat out their competitors when they can all just agree to cap data? They each save billions and the consumer gets screwed. It sucks for their customers, but it benefits all of the big carriers equally so they have absolutely no competitive reason not to collaborate like this. The lack of competition in this space is going to push back development and implementation of better technology for data services.

They're not drug-pushers, fat-cats, or any other derogatory word. They're just businesses making a smart decision to do what benefits them most. There is nothing inherently wrong in that, it's the heart of capitalism. It's also why a ideal free market would never, ever, ever, ever (etc.) benefit the consumer in the end. Anyone who says otherwise is either assuming that businesses are robots that will never do anything immoral, or is just stupid. Businesses play to win.


RE: Just curious, how many use tethering?
By Reclaimer77 on 10/24/2011 8:10:31 PM , Rating: 2
Unregulated market? That's patently false. What is going on these days? Any industry that doesn't appear to be directly under the heel of Congress for every little thing is called "deregulated" or "unregulated". The cell provider industry is VERY regulated.

Consumer getting screwed? You do realize Sprint is the ONLY unlimited data provider here, right?

quote:
The lack of competition in this space is going to push back development and implementation of better technology for data services.


TracFone, Smart Talk, Verizon, Sprint, AT&T, Boost Mobile, Nextel, CellularOne, U.S Cellular, Alltel, Cricket, Virgin Mobile ... wtf, no competition?


By Reclaimer77 on 10/24/2011 8:21:32 PM , Rating: 2
Oops I left one out: T-Mobile.


RE: Just curious, how many use tethering?
By reggie14 on 10/24/2011 9:02:12 PM , Rating: 2
The competition isn't as great as you think.

TracFone- prepaid services that just resells time on Verizon, Sprint, AT&T and/or T-Mobile.

Smart Talk- I've never heard of them. Do you mean Straight Talk? That's just TracFone.

Boost Mobile- Prepaid Sprint without roaming.

Nextel- Been part of Sprint since 2005.

CellularOne- This is just a name used by some smaller regional cell phone companies. Many of them have been gobbled up by Verizon or AT&T.

U.S Cellular- Heavily reliant on a roaming agreement with Verizon.

Alltel- Mostly bought out by Verizon in 2008, although it still has 800,000 customers.

Cricket- Uses Sprint's wireless network.

Virgin Mobile- Now owned by Sprint.


RE: Just curious, how many use tethering?
By Reclaimer77 on 10/24/2011 10:22:33 PM , Rating: 2
Okay so there's no competition unless there's like, what, 20+ "major" carriers? Is that what you're saying?

There's 4 major carriers and a bunch of smaller options, sorry but that's the facts. Just because you don't like a company or think they're not big enough doesn't mean it's not competition. You're just being petty!


By reggie14 on 10/24/2011 10:39:46 PM , Rating: 2
I wasn't trying to be petty. I was trying to point out that Verizon, AT&T, Sprint and T-Mobile have a tight grip on wireless service in the US. Your list of competitors included some companies that have either been bought out by one of the big companies, or that don't have an infrastructure of their own and aren't in a position to set prices, update technology, or change policies.

Honestly, I don't think there's a big problem right now. In general I think we're probably better off with a relatively small number of nationwide wireless service providers. I suspect four mostly independent providers is enough to keep each other honest. But, I'm not sure two providers is enough, and its looking like only AT&T and Verizon will survive.


By monitorjbl on 10/25/2011 11:29:34 AM , Rating: 2
Most of the companies on that list (and most local carriers) don't actually own their own infrastructure, they lease theirs from one of the big ones. Which means that any change the big carriers make is almost guaranteed to affect customers on the smaller carriers.

The top carriers have a huge influence, and not just because they have the most customers. They also got to market first, bought chunks of the spectrum from the FCC first, and built the towers first. Short of the owners losing the company and having to sell off their assets, this isn't going to change, so the argument that competition in this space actually includes anyone except the ones with the most infrastructure (i.e., the first ones) is really difficult to make.

You have to look at the broader picture here, not just the advertising. Sprint is one of the biggest carriers and the fact that it's falling in line with Verizon and AT&T is a seriously troubling sign.


By croc on 10/24/2011 9:03:10 PM , Rating: 2
Out of curiosity, how many companies in the US actually own cellular infrastructure?


RE: Just curious, how many use tethering?
By pandemonium on 10/25/2011 7:02:12 AM , Rating: 2
quote:
Consumer getting screwed? You do realize Sprint is the ONLY unlimited data provider here, right?


Really?

This is what I've had for years; from AT&T's website (http://www.wireless.att.com/cell-phone-service/cel...

Data Unlimited for Non-Smartphones hide $15.00 a month

Unlimited Mobile Web

Connect to all that matters in your world for only $15/month!* Check email, search the Web, update social networking sites, and access music and apps. Plus, access all your favorite websites like CNN, ESPN®, MySpace®, Facebook®, Twitter™, MTV, YouTube™, Yahoo!®, and more!

Unlike the DataPlus and DataPro plans, this is actually unlimited.


By reggie14 on 10/25/2011 9:02:20 AM , Rating: 2
I just want to emphasize that that plan is for non-smartphones only. You can't use it with an iPhone, Android, Windows Phone 7, or Blackberry device.


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