Sprint Launches 4G Only Broadband Plans in Select Markets

Event Summary

August 18, 2010 - Current Analysis noted during its data collection process that Sprint has launched two new 4G only broadband plans at select test markets which include Atlanta, Charlotte, Chicago, Dallas, Greensboro, Houston, Kansas City, Philadelphia, Salt Lake City and Seattle. The 4G Mobile Broadband Connect Plan is priced at $49.99 and is compatible with the newly launched USB U1901 and the 4G Desktop Modem Connection Plan which the carrier has positioned as an alternate to fixed broadband connection is priced $5 cheaper at $44.99. The plan is compatible with Sprint 4G Desktop Modem CPEi25150 and connects to a broadband router enabling users to share the connection in their homes and offices.

Quick Take

Analytical Summary

• Current Perspective: Positive on Sprint’s new plans as they add diversity to its existing mobile broadband portfolio while highlighting its 4G network and the benefits of true unlimited data access. Sprint has consistently been in the news for slashing its mobile broadband prices (please see Sprint Lowers the Price of Its 3G/4G Broadband Plan - Again, January 12, 2010) but now the time is better than ever to harp on the unlimited aspect of its 4G broadband plans (Verizon Wireless has hinted that its LTE network will most likely feature tiered plans) as a benefit against competitor’s upcoming 4G plans.

• Vendor Importance: High to Sprint because the carrier is quickly coming under pressure to grab as many users as possible before competitors unleash their 4G offerings later this year. The new plans help the carrier reach out to new segments and highlight some of its potential advantages over those of forthcoming competitor’s offerings such as true unlimited data access.

• Market Impact: High on the wireless market, as 2010 appears to be the year when 4G-centric offerings go mainstream. Verizon Wireless has already begun trials and is estimated to launch its LTE network in 25-30 markets by year’s end, while GSM operators AT&T and T-Mobile are hedging their bets on HSPA+, waiting for the 4G market to mature before making their move. MetroPCS shocked the wireless world with its announcement that it will forego 3G deployment and move straight to LTE instead. With the entire buzz around faster network speeds and their potential capabilities, it will be interesting to see how the market pans out in the upcoming months in terms of service plans and device pricing and offerings.

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