ZTE Peel Is Interesting but Not Appealing

Event Summary

November 10, 2010 -- Sprint announced that it is offering the ZTE Peel for iPod touch users starting November 14 for $80. The Peel is a case that adds 3G radio capabilities to the iPod touch by connecting to Sprint's 3G data network and creates a WiFi mobile hotspot, allowing the iPod touch and one other device to access the Internet via WiFi. Sprint is offering the device with a 1GB $30 monthly data plan. No contract is required. The device is compatible with Windows and Apple computers and offers up to three hours of battery life.

Quick Take

Analytical Summary

• Current Perspective: Very negative on Sprint’s new ZTE Peel, because the combination of an $80 accessory for older-generation iPod touches and a $30 data plan is a non-starter. While it is true that this is the first service to cater directly to iPod touch users and Sprint deserves a pat on the back for the creative angle, the fact remains that there are other options in the market that offer users more bang for their buck. While the included 1 GB of data access will be unsatisfactory for moderate to heavy users, especially if they use their iPod touch to view streaming videos from YouTube and related sites, the fact that Sprint is offering this as the sole plan for a WiFi outputting device is laughable. More disturbing, the Peel does not work with the current-generation iPod touch, significantly limiting its reach.

• Vendor Importance: Moderate to Sprint, as this marks the carrier’s second attempt to reach out to Apple’s data-centric user base (the first was the iPad sleeve with a pocket for its Overdrive mobile hotspot) with innovate device options. With the ZTE Peel initiative, the carrier has taken the additional step of launching a customized broadband plan via its $30 1GB offering, a sign of its growing interest in the profitable emerging and nontraditional device categories.

• Market Impact: Moderate to Sprint, as this marks the carrier’s second attempt to reach out to Apple’s data-centric user base (the first was the iPad sleeve with a pocket for its Overdrive mobile hotspot) with innovate device options. With the ZTE Peel initiative, the carrier has taken the additional step of launching a customized broadband plan via its $30 1GB offering, a sign of its growing interest in the profitable emerging and nontraditional device categories.

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