- May 4, 2010
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http://4g-wirelessevolution.tmcnet.com/topics/4g-wirelessevolution/articles/92171-sprint-doesnt-rule-out-bandwidth-caps-4g.htm
uh oh! sprint is dropping the "C" word on 4g
- Thread starter jonathanlc2005
- Start date
- May 4, 2010
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Todd Rowley, Sprint VP for 4G services, says Sprint cannot rule out imposing data caps at some point in the future on the 4G network, Network World*(News - Alert) has reported. Nobody ought to be surprised by the possibility of some change, at some point in the future, even if today Clearwire and Sprint 4G are touting unlimited access to 4G data services. Sprint already has a 5-Gbyte cap on 3G devices.
*
The reason Sprnt and Clearwire*(News - Alert) are able to offer unlimited usage is because the network is lightly loaded. The 4G network had, at the end of the first quarter of 2010, less a million subscribers nationwide, and has more spectrum that any other 3G provider, period. Simple physics therefore allows Clearwire and Sprint*(News - Alert) to do something the other networks might find challenging.*
*
Logic suggests that Clearwire and Sprint can turn a lightly-loaded network into a marketing platform precisely by offering unlimited access in a way the 3G networks do not, and indeed Sprint does not do this on its 3G network, which does have much-higher traffic loading.*
*
At some point in the future, if average data use goes much higher, Sprint might move to cap 4G usage.*Rowley used an arbitrary figure of 20 GBytes a month, for example.*
*
And Clearwire and Sprint have to hope that much-higher usage is precisely what happens, as it will mean the firms are adding enough customers to pay for building and operating the network at a profit.*
*
Earlier in 2010, Clearwire disclosed that penetration in its initial three markets had reached 2.7 percent penetration and indicated those markets could reasonably be expected to reach ?EBITDA positive? (earnings before interest, taxes, depreciation and amortization) status--meaning positive earnings exclusive of spectrum investments, for example--in about 18 months.*
*
By way of comparison, Sprint Nextel*(News - Alert) now has about 12 percent market share of U.S. mobile customers, and would have to reach about 25 percent share to rival AT&T. The point is that three-percent share is a good start, but only a start. Three percent basically means each market can stand on its own in terms of cash flow, but not that it is profitable.*
*
There are institutional reasons why Sprint might be more careful than some other companies about switching to capped bandwidth plans. The company saw an unwelcome change in subscriber behavior when it introduced the 5-GByte monthly cap on its 3G data plans.*
*
Bascially, people became concerned about exceeding the cap and actually reduced their consumption of data services. That is a mixed blessing. Less use of data services presumably means less satisfaction and potentially less sampling or consumption of applications and features that provide higher satisfaction. On the other hand, end user caution also can alleviate pressure on the access networks.*
*
So there is a balance to be struck. If consumers become excessively cautious, they might stop watching short-form videos or using other content sources that represent subscription or advertising revenue for Sprint, for example.*
*
Still, Sprint and Clearwire have a huge amount of spectrum, and are not using most of it. The companies have between 120 MHz and 150 MHz worth of spectrum in each local market. and are using no more than 30 megaHertz in most markets. Even doubling that allocation to 60 megaHertz to account for growth, Clearwire still would have room to layer on a completely-different Long Term Evolution network.*
*
So the Sprint or Clearwire retail networks might impose bandwidth caps someday. But the companies have far more headroom to offer plans that offer a marketing advantage.*
*
*
The reason Sprnt and Clearwire*(News - Alert) are able to offer unlimited usage is because the network is lightly loaded. The 4G network had, at the end of the first quarter of 2010, less a million subscribers nationwide, and has more spectrum that any other 3G provider, period. Simple physics therefore allows Clearwire and Sprint*(News - Alert) to do something the other networks might find challenging.*
*
Logic suggests that Clearwire and Sprint can turn a lightly-loaded network into a marketing platform precisely by offering unlimited access in a way the 3G networks do not, and indeed Sprint does not do this on its 3G network, which does have much-higher traffic loading.*
*
At some point in the future, if average data use goes much higher, Sprint might move to cap 4G usage.*Rowley used an arbitrary figure of 20 GBytes a month, for example.*
*
And Clearwire and Sprint have to hope that much-higher usage is precisely what happens, as it will mean the firms are adding enough customers to pay for building and operating the network at a profit.*
*
Earlier in 2010, Clearwire disclosed that penetration in its initial three markets had reached 2.7 percent penetration and indicated those markets could reasonably be expected to reach ?EBITDA positive? (earnings before interest, taxes, depreciation and amortization) status--meaning positive earnings exclusive of spectrum investments, for example--in about 18 months.*
*
By way of comparison, Sprint Nextel*(News - Alert) now has about 12 percent market share of U.S. mobile customers, and would have to reach about 25 percent share to rival AT&T. The point is that three-percent share is a good start, but only a start. Three percent basically means each market can stand on its own in terms of cash flow, but not that it is profitable.*
*
There are institutional reasons why Sprint might be more careful than some other companies about switching to capped bandwidth plans. The company saw an unwelcome change in subscriber behavior when it introduced the 5-GByte monthly cap on its 3G data plans.*
*
Bascially, people became concerned about exceeding the cap and actually reduced their consumption of data services. That is a mixed blessing. Less use of data services presumably means less satisfaction and potentially less sampling or consumption of applications and features that provide higher satisfaction. On the other hand, end user caution also can alleviate pressure on the access networks.*
*
So there is a balance to be struck. If consumers become excessively cautious, they might stop watching short-form videos or using other content sources that represent subscription or advertising revenue for Sprint, for example.*
*
Still, Sprint and Clearwire have a huge amount of spectrum, and are not using most of it. The companies have between 120 MHz and 150 MHz worth of spectrum in each local market. and are using no more than 30 megaHertz in most markets. Even doubling that allocation to 60 megaHertz to account for growth, Clearwire still would have room to layer on a completely-different Long Term Evolution network.*
*
So the Sprint or Clearwire retail networks might impose bandwidth caps someday. But the companies have far more headroom to offer plans that offer a marketing advantage.*
*
not the way Sprint words it, you paying for the rich high quality features of the device including the data, emphasis on device features. Also, as it stands now you get unlimited 3G data usage through the device, the 5GB cap is for broadband cards. So that might be the way Sprint will go.
If a data cap comes in to play, I think all of us 4G users have a right to refuse the "premium data" charge.
bassmanxu
Well-known member
- May 7, 2010
- 155
- 7
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For now, I would say yes. This article also says "at some point in the future," and does not specify any specific time frame. BUT, given the fact that networks are already being strained, and that smartphones still only account for a little less than 20% of total global phone market share, and that we keep seeing more data-intensive products being released, do you think that the carriers will forever continue to allow uncapped use? As an EVO owner, am I happy about it? Of course not. Just trying to be realistic.
This is an interesting read, and note that under Mobile Content Usage, you still see around 30% of all U.S. mobile subscribers downloading apps, using a browser, and playing online games. Those numbers are sure to continue rising.
Nevertheless, The tooting point " " for 4G at this moment as to why we were feeling OK about the 4G network 10 dollar surcharge. As the network becomes more saturated I understand the "cap." Yet, Sprint should never put the cap as low as verizon/ATT because that would take away from their VALUE market strat.
Did you guys also hear that Sprint is thinking about switching to LTE in the future..... I was reading an article that they think that is a real possibility in the coming years.
Did you guys also hear that Sprint is thinking about switching to LTE in the future..... I was reading an article that they think that is a real possibility in the coming years.
- May 4, 2010
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Sprint coverage is just spotty enough in my area to be somewhat annoying on a daily basis (my phone has to sit in one place in my apartment when I get home in the evening in order for me to make or receive a call). However, Sprint is also a good enough deal that it evens out for me.
Upping my bill $10 when I bought the EVO and then in the future losing the unlimited bandwidth that provides would tip the hat to the other side. The price differential would not be enough for me to put up with Sprint's coverage anymore and I'd just move to Verizon where I never have to worry about coverage at all.
They need to think about that before they start upping prices or imposing or lowering caps. Until they can give me coverage like Verizon they damn well better be cheaper for me to put up with them.
Upping my bill $10 when I bought the EVO and then in the future losing the unlimited bandwidth that provides would tip the hat to the other side. The price differential would not be enough for me to put up with Sprint's coverage anymore and I'd just move to Verizon where I never have to worry about coverage at all.
They need to think about that before they start upping prices or imposing or lowering caps. Until they can give me coverage like Verizon they damn well better be cheaper for me to put up with them.
Actually you signed a contract, so you CAN NOT refuse the "premium data" charges, because they worded it so that they CAN put a cap in the future without going against the contract.
I'm only in my second year with Sprint, I sort of doubt I'd get any deal or waiver on the price and monthly charges for it.
Sure they would. You just have to word it carefully, make it look like you will leave. They want to keep you.
Paladin
Well-known member
- Apr 26, 2010
- 469
- 29
- 28
I agree man. Call them and complain and tell them that you need your phone as it is your primary phone and you need to be able to call/get calls from family members in an *emergency etc.. etc... Tell them you have a sick family member and tell them then that you need to cancle the service unless there is something they can do to improve the signal. Play dumb. They should offer you an airwave then.
*Stay away from mentioning calling 911 since all carriers are required by law to put 911 calls through no matter what phone it comes from, even ones with no service.
I'm not a fan of the C-word by any means, but given the 20G cap in the example, I think I could live with that. On my most abusive months, I MIGHT hit 10G.
If they made it a 25G cap, I think most of us wouldn't notice...
If they made it a 25G cap, I think most of us wouldn't notice...
Kevin OQuinn
AC Team Emeritus
- May 17, 2010
- 9,267
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Different operating frequencies. They would require different hardware to receive the LTE signal, just like they would have to make changes on the towers to broadcast LTE.
It'll be similar to the changes just instituted on ATT. Grandfathered unlimited for people that still have it, want a new feature with a new device, you lose your old service plan for a tiered service. I've said it before but I would gladly go to a tiered model on Sprint as long as the price was reasonable for the amount of data I'm limited to. With 4G be it WiMax or LTE they should be able to give us packages of 30, 50GB or so at some point. I just hope at some point for the fact that they're giving us a clear limit on data, that they just let us use the data however we want,(tethering) within the limit.
As soon as Sprint starts capping like AT&T (and Verizon will soon change to), Sprint loses alot of its appeal, especially considering the $10 surcharge on the EVO data plan. Why would I want to stay with the inferior network if the price is nearly the same (albeit Verizon/AT&T doesn't have unlimited mobile to mobile for cheap) and the data is similarly capped?
- May 4, 2010
- 322
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not true... the towers have dual mode capabilities to make software changes if needed... just like some chips that have gsm functions with cdma blocked but used in cdma with gsm functions blocked
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