Sprint Nextel expands $10 data charge to all smart phones, some feature phones

Sprint Nextel Corp. (S) said it will begin charging a $10 per month premium for all smart phone devices and a select line of feature phones activated on its network beginning Jan. 30. The additional charge will apply to all devices running Research In Motion Ltd.’s BlackBerry OS, Google Inc.’s Android OS, Microsoft Corp.’s Windows Mobile, Palm Inc.’s operating systems as well as the Samsung Electronics Co. Ltd. Instinct devices.
The carrier said the charge will help offset costs involved with bolstering its network to meet the growing demand for mobile data services. Sprint Nextel noted that on average its smart phone customers use 10 times more data than its feature phone customers.
The carrier said that existing smart phone customers would not be impacted by the charge unless they upgraded to or activate another smart phone.
Sprint Nextel had previously charged a $10 premium for smart phones that were able to access its “4G” WiMAX service even if customers did not live in an area – or ever travel to an area – that was covered with the Clearwire Corp. supplied WiMAX network. The $10 surcharge for WiMAX-enabled devices has been a source of contention between Sprint Nextel and Clearwire with both companies currently negotiating how much of a cut Clearwire should get of that premium.
“Sprint wants its customers to experience the range of entertainment and productivity possibilities available with today’s wireless technology,” said Bob Johnson, president of Sprint Nextel’s consumer business, in a statement. “While some of our competitors impose overage charges and complex plans, Sprint continues to provide a worry-free, unlimited data experience while on the Sprint network. This is responsible, sustainable and reflects our commitment to simplicity and value.”
Sprint Nextel will continue to offer only unlimited data services to its customers. Some of its competitors have moved in the other direction by providing a lower-priced tier of data service or by capping their former unlimited offerings. Sprint Nextel executives have said they were looking at offering tiered data pricing models, but so far have not made a move to implement such plans.
The carrier recently announced a multi-billion dollar plan to upgrade its current network operations that are expected to bolster network efficiency and coverage.