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Hesse: Metered Pricing On the Table

Posted In: Billing | Sprint Nextel | Data Services | FirstNews

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Sprint Nextel CEO Dan Hesse said at an investor conference this morning that the company has not ruled out moving away from unlimited data plans in favor of tiered pricing.

Speaking at the Goldman Sachs Communicopia XIX Conference, Hesse said Sprint was keeping an eye on skyrocketing data use to determine whether the company should move toward tiered plans of the sort recently implemented by AT&T.

"We watch this very closely, we're looking at what does make sense," Hesse said. "I'm clearly not ruling out going to metered."

Hesse maintained that Sprint had no immediate plans to move to tiered pricing and said subscribers who signed up for the company's unlimited data plans were willing to "pay a premium for simplicity."

"Right now our plan is not to go to metered, but as Dan Quayle would say, that could change," Hesse said.

Sprint charges $10 more for service on its Samsung Epic and HTC EVO because the 4G devices consume more data than the 3G devices in Sprint's portfolio, but the company has stuck to unlimited plans for its 4G data service.

Hesse's comments may mark a greater willingness to consider tiered pricing as the industry grapples with skyrocketing data use. Sprint's all-you-can eat plans have helped attract subscribers, but Hesse admitted the company had lost money on some high-use customers.

Sprint has not released information on the average data usage of its subscribers, but its 4G service runs on Clearwire's network and the two companies offer similar plans for mobile broadband service. The average Clearwire subscriber consumes more than 7 GB of data per month.


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2 Comments

  • Here my reason why the service providers (SP) are going the metered way. The SP can police the traffic for bandwidth requirements per user, but if they deploy deep packet inspection (DPI) service routers to detect the type of traffic, then they are spying on users data. This I believe is the root cause for the SP to implement metered pricing. This allows then to deploy DPI and control the policing of traffic and bandwidth requirements per user, without stating that they are deploying DPI. I can now inspect your packet header and determine the type of payload you are sending. It can even go deeper and inspect your payload. Now I can even police you further, if for instance you setup a P-to-P connection across the SP network. Someone is running a service on SP network, but the SP is not getting paid.........need I stay more.

  • As the users of wireless phones and other devices change the manner in which they use the device (the way texting for some is used far more the voice) the wireless service provider(s) need to not just keep up, but rather lead the way, and in doing so attract customers. Sprint has been leading in some ways, but now often shows a lack of innovation turning to follow others. Why? There is NO leadership coming from AT&T. Sprint, do some brainstorming and again become innovative.

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