So far, Sprint’s been steadfast in its commitment to keeping caps off its data plans — a big selling point since AT&T’s moved to tiered pricing and Verizon has threatened to do the same — but the laws of supply and demand sadly still exist, and Sprint CEO Dan Hesse knows it. In speaking at the Emerging Technologies Conference at MIT today, Hesse mentioned that his company “can offer unlimited as long as the usage is reasonable,” suggesting that a glut of extremely heavy users (you probably know who you are) could ultimately mean he “can’t afford to do that anymore.” Torrenting off a tethered EVO is fun, yes — especially when you’re on WiMAX — but just remember: it might ultimately come back to bite you.
Walmart’s already firmly entrenched in the prepaid cellular business, offering handsets and service via Common Cents (Sprint) and Straight Talk (Verizon Wireless), but according to Greg Hall, vice president of merchandising at Walmart US, there’s a “perception among customers that prepaid service doesn’t offer access to the best phones or the best network quality.” In order to combat that, the outfit will be launching a new postpaid service today dubbed Walmart Family Mobile. The actual fine print is somewhat confusing, as it offers the best of both the pre- and postpaid worlds; users will still pay their monthly bill at the end of the month, but no subsidization will take place on the phones themselves due to this being a no-contract ordeal. It’ll cost $45 per month for unlimited calling and texting for the first line, and $25 per month for every extra line; unfortunately, data will be a pricey addition at $40 per month for 1GB… but at least that rolls over each month in case you don’t use it all. Initially, Wally World will offer five handsets, with the flagship phone being Motorola’s Cliq XT at $249. Frankly, we aren’t too impressed at what’s on offer here — get unlimited data bundled with calling and texting for the same $45 / month, then we’ll talk.
Update: Official PR is now after the break, and that’s a September 20th launch date, so next Monday.
Update 2: So, Walmart’s PR team contacted us to flesh out the data plan details that the AP sort of glossed over. Thankfully, the full skinny is far more attractive than what we were led to believe. In short, each line comes with 100MB of data (one-time); after you use that up, you’ve got a trio of prepaid ‘WebPak’ options to keep you going. $10 buys you an extra 200MB, $25 gets you 500MB and $40 gets you 1GB. Good stuff!
For voice and data alike, “unlimited” is a major buzzword among value carriers like Cricket, Virgin Mobile, and Boost Mobile lately — and when they can offer it for $10 or $20 less than the big guys, why shouldn’t it be? Boost is slicing the unlimited option in a new way this week with the announcement that it’s now offering unlimited nationwide voice, messaging, web, IM, email, and information for $2 a day, which if our rough math is correct, works out to $60 a month. That’s $10 a more than you pay if you just bite the bullet and prepay on a monthly basis, but obviously it’s a heck of a lot more flexible, too — and with these prepaid guys, flexibility is king. Follow the break for the full press release.
Whereas AT&T’s move to tiered smartphone data pricing signaled “the end of unlimited” to some, Sprint subsidiary Virgin Mobile USA has just defied that notion with an all-you-can-eat broadband buffet priced at $40 per month. First reported by IntoMobile and confirmed today on the carrier’s Facebook page, the plan will replace existing $20, $40 and $60 monthly offerings that currently top out at just 5GB, so only those accustomed to paying $20 a month (for 300MB) won’t get a totally sweet deal. As you can see above, the $10 for 100MB over 10 days plan will still stay pat, so you can still choose whether to sip or gulp down Sprint network packets when the plans purportedly go into effect on August 24th.
Carriers test the waters on new plans all the time, but this new one from Verizon seems — at least at cursory glance — squarely aimed at its CDMA competitor. According to research from Current Analysis, the nation’s top carrier is trying out an unlimited Nationwide Talk & Text plan for $69.99 in San Diego and Los Angeles retail outlets. That’s $20 less than the current price, and coupled with a $29.99 data plan, we’re looking at a monthly fee that’s within pennies of Sprint’s Simply Everything plan. As with other network trials, this one may never expand beyond certain test markets — but needless to say, this seems to indicate Verizon’s taking its smaller CDMA rival a whole lot more seriously. Amazing what a quarter of positive subscriber growth can do, isn’t it?
Hang on to your megabytes, folks, because it looks like the Brave New World of limited data is truly upon us. AT&T and Verizon tend to follow each others’ moves pretty closely — the two carriers regard each other as their nearest competitors, after all — and we’re hearing that Big Red intends to move to some sort of tiered bucket strategy on July 29. We don’t have details on whether the pricing will be identical to AT&T’s ($25 for 2GB, $15 for 200MB), but we imagine it’ll be within shouting distance if not. Of course, Verizon has been sending this message for a long time — even before AT&T was — so it shouldn’t come as a surprise to anyone that this is going down. You might say that Droid Does Caps, eh?
Even though AT&T’s $30 unlimited data plan technically went the way of the dodo back on June 7, the company had assured 3G iPad owners that they’d be entitled to one last hurrah — buy an iPad prior to the 7th and you’d be allowed to grandfather into the old plan, even if you didn’t receive your purchase by the deadline. Problem is, the unlimited plan option finally disappeared off AT&T-connected iPads for the first time today, leaving some of these eligible folks who haven’t yet signed up for 3G data in the lurch. Not to worry, though: AT&T says that everyone who’s eligible “will be able to select the unlimited plan” and that “details will follow.” In other words, we don’t know how this is going to work yet, but at least the carrier’s aware of the issue. Stay tuned.
Bypassing a company’s power structure altogether and contacting the CEO directly is the vogue thing to do right now — and in light of the AT&T incident this week, it probably behooves said CEOs (and / or their assistants) to earn some PR brownie points by responding with a positive attitude. Take this response from Sprint boss Dan Hesse, for example, in reply to a request that the company “keep [its] great pricing and customer service, and most importantly — keep unlimited data.” In short, Hesse says “one can never say ‘never,’ but [the company] has no current plans to change our pricing.” That’s certainly the “correct” thing to say coming off AT&T’s big strategy shift toward killing unlimited and hints from Verizon that it’ll do the same, but whether Sprint is able to hold the line when the WiMAX airwaves are flooded with EVO 4Gs and EVO 4G-like devices is another matter altogether. We’ll see.
There’s naturally been a ton of feedback in the past few hours on AT&T’s new data pricing strategy, and the company has been responding to comments all morning over on its Facebook page; one of the key tidbits that’s come out of the discussion so far is that folks on the current $30 smartphone data plan will be able to keep that plan when upgrading hardware. Translation: yes, you’ll be able to get a new iPhone without switching to the $25 / 2GB DataPro plan if you so choose. What you won’t be able to do, though, is keep the $30 plan and add on the $20 tethering option — tethering specifically requires DataPro, so your hopes and dreams of a soft 5GB cap are quashed (unless you want to pay $30 for 3GB of overage, of course).
On a related note, we’ve been tipped that some folks’ iPad orders from Apple have been pushed back to June 7 — an interesting coincidence, considering that’s when DataPlus and DataPro go live. If true, it’s likely so that Apple can pre-install new orders with updated software for managing the new plans, but it’s also a preemptive strike against a horde of people trying to grandfather into the $30 plan over the next few days.
We’d not-so-secretly hoped that carriers would be looking to dispense with those troublesome 5GB caps on so-called “unlimited” 3G data plans, but there’s a big problem with that: spectrum is still limited, and even though 4G technologies help use it more efficiently, it’s still a constraint that the FCC is going to need many years to solve. We’re not sure how much the spectrum crunch really factors in here, but in addition to his comments on Droid Incredible inventory problems, Verizon Wireless boss Lowell McAdam mentioned at a Barclays Capital conference this week that he hopes to move away from unlimited plans altogether for the company’s LTE network, instead charging for “buckets” of megabytes, just like in the olden days — despite the fact that it’ll cost it a half to a third of what it costs today to transmit the same amount of data.
On a happier note, McAdam said that the company expects to be using its LTE network for voice by 2012, which comes just after its first volley of LTE-capable handsets in early 2011. He also mentioned that at least some of those devices will be shown off at CES 2011, and naturally, we’ll be there — not just to check out the phones, but to raise some hell at the notion that unlimited data is a thing of the past. At this rate, how are we ever going to run the Engadget servers on a wireless connection?
So far, Sprint’s been steadfast in its commitment to keeping caps off its data plans — a big selling point since AT&T’s moved to tiered pricing and Verizon has threatened to do the same — but the laws of supply and demand sadly still exist, and Sprint CEO Dan Hesse knows it. In speaking at the Emerging Technologies Conference at MIT today, Hesse mentioned that his company “can offer unlimited as long as the usage is reasonable,” suggesting that a glut of extremely heavy users (you probably know who you are) could ultimately mean he “can’t afford to do that anymore.” Torrenting off a tethered EVO is fun, yes — especially when you’re on WiMAX — but just remember: it might ultimately come back to bite you.
