Sprint Promises Lifetime of Unlimited Data for Flat Fee


Sprint is looking to compete with its rivals, Verizon and AT&T, by offering unlimited data services for the lifetime of an account.

This announcement comes a day after SoftBank Corp closed its $21.6 billion purchase of 78 percent of Sprint. This is also two days after Sprint closed its buyout of Clearwire Corp. 

The company already offers unlimited data services at a flat monthly fee, but they have long expected that they would eventually have to charge customers for the amount of data used. 

Now that they have bought Clearwire, they have the ability to guarantee unlimited data for a flat fee for the rest of the account's life.

Sprint Chief Executive Dan Hesse said, "Our research has shown that is a big issue for us in attracting AT&T and Verizon customers," he said. This new service will "clearly differentiate" Sprint from the top two cellular providers. 

Without access to Clearwire's airwaves, Hesse said that the company would have "run out of gas" and would have had to charge customers more for data.

BTIG analyst Walt Piecyk said offering unlimited services at a flat fee will lure customers away from AT&T and Verizon, but it will also depend on how much the company can strengthen its network. 

The company is behind on upgrading to high-speed data services.

"They need to change the perception of their network," Piecyk said. 

Sources: Yahoo, Reuters


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