Explain the Fee!
18Jan/119

Verizon announces the iPhone and Sprint announces increased prices!

Sprint just announced that all smart phones on their network will require the $10 "Premium Data" fee as of Jan 30th, 2011.  Anyone who currently has a plan will be grandfathered to their current rates.

Really?  You originally said that anyone getting the "top tier" phones would be subjected to a $10 "Premium Data" fee and because of that you'd have access to life changing features such as a bigger screen, faster speeds, more data and maybe even a kick stand.

So that was the deal.  You pay $10 and you get these features that no other Sprint phone has!  The EVO had the biggest screen and access to 4G!  The Epic had a keyboard and access to 4G!  Both even had front facing cameras that allowed video chat!

Then enters the EVO Shift.. a phone that requires the $10 "Premium Data" but lacks a front facing camera and has a limited smaller screen.  The only real big feature that the EVO Shift has that the other "Premium Data" required phones has is the ability to access the 4G network.

But wait, we've been told "Premium Data" is NOT for 4G!  Why does this feature lacking so-called EVO require Premium Data then and the Samsung Transform doesn't?

Look at the comparison between the phones on this website.  The Transform actually has dual cameras, which the EVO Shift does not, yet the Transform is the one without "Premium Data".

Again, what is the common denominator?  4G.

Sprint seems to not understand.  They charged customer's for a feature that most couldn't get and now instead of removing the fee, they're raising the prices of all of their other phones to basically "eliminate" this added fee.  What does that mean for everyone else?  You don't have to worry about deciding on a 4G or non-4G phone, you're going to pay for "Premium Data" regardless of the phone you have!


Sprint's Press Release:

Smartphones Drive Wireless Data Explosion

Sprint takes step to ensure customers continue to enjoy unlimited data while on the Sprint Network, without overages

Smartphone penetration is expected to double during the next four years.1
Market share for Google’s Android operating system grew by 23 percent last year alone.2
Mobile data traffic is forecast to double worldwide each year through 2014.3

OVERLAND PARK, Kan. (BUSINESS WIRE), January 18, 2011 – Today’s ability to do more things on the go – such as watching videos, sharing pictures or checking directions – is not only changing the way we live; it is driving exponential growth of mobile data traffic.

Sprint (NYSE: S) is committed to providing its customers a great wireless experience now and in the future. From its packed portfolio of innovative phones and devices to its leadership in introducing 4G services, to its consumer-friendly Everything Data plans, featuring unlimited text, Web and calling to any mobile phone, Sprint offers the best value in wireless.

Sprint will increase its postpaid rates by applying a $10 per month Premium Data add-on charge to activations of smartphones beginning Jan. 30. The charge will assist Sprint in offering simple and affordable unlimited plans for its customers while maintaining a wireless network able to meet the growing appetite for a richer mobile experience. Subscribers with smartphones will still receive the best value in wireless, including the Any Mobile, Anytime feature offered nationwide only by Sprint.

Sprint also offers a full range of traditional feature phones, including popular eco-friendly or touch-screen handsets that do not require the Premium Data add-on charge but still have a great range of capabilities with voice, text and data access. Existing Sprint smartphone customers are not affected unless they upgrade to or activate another smartphone.

“Sprint wants its customers to experience the range of entertainment and productivity possibilities available with today’s wireless technology,” said Bob H. Johnson, president of Sprint’s consumer business. “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’s decision to apply the Premium Data add-on charge to activations of smartphones going forward recognizes the enhanced user experience that today’s smartphones deliver, which, in turn, drives substantially higher data usage and cost,” said Roger Entner, analyst and founder of Recon Analytics.

“Building, maintaining and expanding wireless data networks isn’t free – there are real costs involved. In effect, Sprint has chosen to increase the price of its unlimited Everything Data plans, which is still below that of its major competitors, for the segment of customers – smartphone users – who are using wireless data the most and are driving up costs. Consumers have many choices. They can choose unlimited, worry-free data plans on the Sprint network or they can have tiered, metered plans and overage charges with other wireless carriers.”

Smartphone customers use, on average, 10 times more data than users of traditional feature phones. Smartphone users have access to more data capabilities, applications and other functionality than traditional feature phones. Examples include access to thousands of applications and games through online marketplaces and full HTML Web browsing with Adobe Flash technology that allows users to browse the Internet on their devices just like they can at home or in the office.

Sprint defines smartphones as devices with robust operating systems that deliver a rich wireless experience by bringing the full function of mobile applications and programs to life, including Blackberry, Android, Windows Mobile, Palm, and the Instinct family of devices. The Premium Data add-on charge previously applied to HTC EVO 4G, HTC EVO Shift 4G and Samsung Epic 4G devices.

“Sprint continues to be the carrier for people who want to do more than just talk with their wireless devices,” said Johnson. “Customer growth on our 3G and 4G networks, exponential increases in the use of mobile data applications, and the growing use of smartphones is proof that consumers are getting the message.

“Sprint’s unlimited data plans, with or without the $10 charge, continue to beat the offerings of our top national competitors, who cap users’ data, charge data overages, and do not offer the unique functionality of Any Mobile, Anytime, which gives subscribers on the Sprint network unlimited calling to any other wireless user in America regardless of carrier.”

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 48.8 million customers at the end of the third quarter of 2010 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, Common Cents Mobile and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Newsweek ranked Sprint No. 6 in its 2010 Green Rankings, listing it as one of the nation’s greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.

1 Heavy Reading, Assessment of Sprint’s Network Vision Initiative, by Berge Ayvazian, Dec. 10, 2010.

2 Ibid.

3 Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2009-2014.

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About Brian - ExplainTheFee.com

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  • ProductFRED

    Brian, I'm that dude that emailed you. You might wanna mention that you're grandfathered until your next upgrade. The fee is also for 3G smartphones, not dumbphones. If you look here, you will see this doesn't apply to "feature phones" (aka dumbphones): http://shop.sprint.com/en/stor...

  • explainthefee

    I was sure to mention the grandfathering in the first paragraph. It'll be
    interesting to see what happens with this..

  • ArloP

    FWIW, the new fee will apply the first time you activate a different (not necessarily new) smartphone on your account. I enjoy switching between 3 phones, and though my current family plan will be grandfathered, a Sprint CS rep confirmed yesterday that the fee will be added to my line the first time my ESN changes.

    Sprint also plans to pull my annual handset upgrade in April (I pay $154 monthly, $16 shy of the $170 required for Gold Premier status). The combination--and the transparency of Sprint's calculation--is more than a little irksome.

    I agree: It'll be interesting to see what comes of this. I, for one, am shopping.

  • Guitardoc64

    I'm in the same boat. I was looking to change phones to the Optimus in April. Now I'm looking for a way out of Sprint. They don't offer even 3G in my area, all I get is 1X pitiful speeds and my Hero's performance/usefulness suffers. Yet I am in a great voice coverage area, so I can't just walk without etf unless I get them to drop me. I am going to an attourney next week to discuss options.

  • ProductFRED

    So they'll be keeping Gold Premier status? I pay a little over $170 for 4 lines, but I've only been with Sprint since August. I qualify for any Premier status starting next month.

  • ArloP

    Yes, they're keeping (but changing) the Premier program, and it sounds like you should qualify for Gold status. (What I don't know is how taxes and fees play into this.) I hope you make the cut. :)

  • ProductFRED

    Thanks. From my understanding though, lines 3-5 count as "addons", but I'm not sure about that.

  • ProductFRED

    Oh, ok. Sorry didn't see that. But what I meant was you're grandfathered, but once you upgrade, you have to pay the fee. I find it incredibly annoying how they don't call it what it is: a rate hike. There's nothing "Premium" about it. There are other ways to lower costs such as getting rid of:

    - Sprint Football Live
    - Sprint TV
    - Sprint NASCAR
    - Stop sponsoring NASCAR so much

    Why spend money, time, and resources on those apps when there are third-party developers who make similar apps?

    I only switched to Sprint this August, but between this and them repeatedly giving me defective Evos, I might just switch to T-Mobile at the end of my contract.

  • This is interesting. Disappointing and irritating, but interesting. Now go back and re-read your 10/22 post "Do you REALLY need Premium Data?" with this new development in mind. Sort changes things, doesn't it? I wonder what would happen if, on Feb 1st, I re-activated my old Palm Centro, or even my Palm 650? Sprint marketed both of them as a smart-phones, would they also be subject to the $10 add-on? In what universe could they possibly use "premium data?"

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