Sprint Differentiates with iPhone Unlimited Data Plans
Much ado is being made about Sprint Nextel's move to offer Apple iPhones with unlimited data plans. Although the iPhone 4S has not yet hit the market, Sprint is whetting the appetites of its customer base that may want a less-expensive model with the promise of a $99 iPhone 4 running iOS 5 and an all-you-can-eat data package.
iPhone 4S will be available from Sprint starting at $199.99 for the 16GB model, $299.99 for the 32GB model and $399.99 for the 64GB model, beginning Oct. 14. iPhone 4 will cost just $99.99 for the 8GB model and is available now. The prices demand a two-year contract.
"Our unlimited data plans are the perfect fit for iPhone customers," said Sprint CEO Dan Hesse. "Sprint's unlimited data plans provide more value than metered plans from other carriers. Our customers can take advantage of the innovative features of iPhone without worrying about overage charges or surprises on their bill."
Sprint Scores on Pricing
Hesse is not just blowing smoke. AT&T and Verizon Wireless, the two other wireless carriers that offer the iPhone, don't offer an unlimited data package for the iPhone. In fact, AT&T is throttling heavy users on its network. Rolling out the iPhone with an initial unlimited data plan has been the go-to-market strategy for each of the U.S. carriers.
"AT&T and Verizon both offered unlimited plans when they first rolled out the iPhone and then pulled back," said Michael Gartenberg, an analyst at Gartner. "This unlimited data option may be something that will convince new iPhone buyers to move to Sprint. The one thing about those plans on other networks is early buyers got to keep them, if they wished, and some still maintain those unlimited plans."
As Gartenberg sees it, since the iPhone is selling at about the same price from all three U.S. carriers, the cost of the services may determine which carrier new iPhone users turn to. It could even cause some users with expiring contracts to jump on the Sprint bandwagon.
"The iPhone isn't going to make or break Sprint, but the iPhone is clearly the iconic device. For a lot of consumers who may have been interested in Sprint as a carrier, the lack of an iPhone may well have been an inhibitor," Gartenberg said. "That is no longer an inhibitor. The unlimited data option is definitely a nice way for Sprint to differentiate from the competitors."
Sprint Sings Service
Sprint promises that consumers who choose its unlimited data plans don't have to worry about throttling (slow mobile-broadband speeds) or surprises on their monthly bill due to data overage charges that may occur with tiered data plans from other carriers.
Sprint's plans start at just $69.99 a month plus a $10 premium data add-on charge. Sprint's Simply Everything Plan offers unlimited calling, data and text for $99.99 a month plus a $10 premium data add-on charge. Sprint also offers a Mobile Hotspot option for an additional $29.99 per month that supports up to five Wi-Fi enabled devices simultaneously.
Beyond its unlimited data plan, Sprint is hoping to turn heads with its customer service. Sprint has racked up a number of accolades, including being named a J.D. Power 2011 Customer Service Champion. Sprint is also the wireless-industry leader in call satisfaction, according to a study from Vocalabs released in January 2011, which tracks the quality of support that customers receive from their providers.
