Sunday, July 10, 2011

Verizon's new pricing plan is a godsend for Sprint

Commentary Verizon Wireless' move to a tiered data plan will cement Sprint Nextel's role as the go-to carrier for heavy data users.

On Thursday, new Verizon customers will have to sign up for a usage-based data plan to go along with their handset. With AT&T having already moved to a tiered model and T-Mobile USA slowing down excessive data hogs, that leaves Sprint as the only national carrier offering unlimited data with no strings attached.

It's a rare advantage for Sprint, which routinely gets outgunned by AT&T and Verizon both in marketing clout and in handset selection. Sprint, which has hinged its turnaround on more affordable, simple, flat-rate pricing plans, is expected to press its advantage. It could also become a major selling point if it also ends up carrying Apple's iPhone.

"(Sprint) is becoming a haven for heavy users," said Roger Entner, an analyst at Recon Analytics.

Verizon's switch, unlike AT&T, seemingly targets high-end users. When AT&T moved to tiered pricing, it offered a lower-end $15 plan with limited data access. Verizon offers no such option, instead introducing more expensive plans for heavy data users.      More