Sprint CEO doesn't see metered 4G service

Sprint CEO Dan Hesse today said that he doesn't anticipate Sprint adopting the tiered pricing models for 4G data services that have been floated by rivals AT&T and Verizon.

Sprint CEO Dan Hesse today said that he doesn't anticipate Sprint adopting the tiered pricing models for 4G data services that have been floated by rivals AT&T and Verizon.

Verizon's tiered LTE plans fuel "bill shock" debate

Speaking at the EmTech conference at MIT in Cambridge, Mass., today, Hesse said he felt confident that Sprint and Clearwire had a strong enough spectrum portfolio to handle the expected surge in data traffic from 4G users. He also said that the company could keep its plans unlimited by charging more if it eventually found that customers were consuming more data than the carrier could handle.

"We can offer unlimited service as long as the usage is reasonable," he said. "We know users will use lot more data, so we charge our customers $10 more per month on 4G phone. So it's unlimited but we charge more for that service."

Hesse said there were rare circumstances where service would not be unlimited but that those circumstances were limited to less than 1 per cent of users who consumed unusually large amounts of data on a monthly basis. In those cases, Hesse said the company would work out a deal with those users to pay more per month for 4G service or would tell the user they would be cut off after they consumed a certain amount of data. But overall Hesse expected that the vast majority of users would not come close to approaching this threshold.

"At Sprint we're trying to use our resources as efficiently as possible," he said. "But if you have certain [data] hogs you can ratchet them down as much as possible."

While Hesse would not completely rule out implementing tiered 4G services sometime in the future, he said the company was not looking at it right now and that having a metered service might degrade user experience.

The wireless industry has recently started moving away from all-you-can-eat wireless data plans and toward tiered service plans. AT&T got the ball rolling earlier this year when they announced they were dropping unlimited data plans for the iPhone in favor of plans that offered between 200MB and 2GB of data consumption per month. Verizon shortly followed suit by saying it would implement a similar pricing scheme for its 4G LTE services that are due to launch later this year. Verizon COO Lowell McAdam hinted earlier this year that LTE plans would give users a certain amount of data they could consume every month before they would have to pay overage fees.

Earlier this year Sprint 4G Vice President Todd Rowley explained that Sprint would be reluctant to implement 4G data caps after it experimented with 5GB data caps on its 3G EV-DO Rev. A network. Rowley said that the company found many customers becoming worried about using data after implementing the cap, meaning there was less consumption of data on the network overall.

Sprint and its partners at Clearwire have been launching commercial WiMAX services in major markets in the United States over the past year. By the end of the year they will have built out a WiMAX network that spans all major U.S. markets and that covers 120 million points of presence.

Read more about anti-malware in Network World's Anti-malware section.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags wirelessNetworkingsprintat&tClearwire3G & 4G

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Brad Reed

Network World
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?