Sprint will continue to offer unlimited data for next-gen iPhone
The third largest U.S. wireless carrier by subscribers aims to maintain the iPhone's unlimited data plan in what it believes is a trump card against competing offerings from other networks that have the handset like AT&T and Verizon, reports CNET.
"I'm not anticipating the unlimited plan would change by that point," Hesse said of the upcoming product's launch window. "That's our distinctive differentiator. We're clearly attracting customers from our competitors.""
Hesse's statement comes on the heels of Sprint's first quarter earnings call in which the company posted a loss of $863 million as 192,000 contract subscribers left the network. The exodus may be attributed to the shutdown of the Nextel network.
Despite the revenue slip, the telecom sold 1.5 million iPhones during the quarter, 44 percent of which were to new customers. This accounted for about 60 percent of all new subscribers joining Sprint's network in the past three months and brings the total number of subscribers up to 56 million.
The recent quarterly results are slightly lower than the company's holiday quarter where it sold 1.8 million iPhones, 40 percent of which were to new subscribers.
Source: Sprint
Wednesday's news adds to earlier statements from Sprint CFO Joe Euteneuer who revealed in March that the company's current arrangement with Apple allows for the sale of an LTE iPhone if and when the Cupertino-based computer giant chooses to release such a device.
Hesse notes that he has no inside information as to when the next iPhone will debut or whether it will carry LTE support, though he guessed that all networks will be able to tap into the functionality when Apple launches such a device.
"Our expectation is that we will all get the same device at the same time," Hesse said.
Sprint, the last of the "big-three" U.S. wireless carriers to sell the iPhone, signed a commitment with Apple last year for 30.5 million iPhones in what was then called a "bet-the-company" move reportedly worth $20 blllion. In a subsequent 10-K filing in February it was revealed the company actually spent $15.5 billion on the deal, but the handset's success was such that it planned to exceed the agreement terms and purchase even more units.
"Frankly, it's a marriage made in heaven," Hesse said Wednesday regarding the iPhone and Sprint's unlimited data plan.
12 Comments
We will see how long it lasts. Sprint will have to have quite an extensive roll-out of their LTE network to support all of the people who want the next gen iPhone.
It would be a match made in heaven if Sprint's data speeds and availability didn't suuuuuuuuuck soooooooooo baaaaaaaad.
[quote name="emoeric87" url="/t/149617/sprint-will-continue-to-offer-unlimited-data-for-next-gen-iphone#post_2100981"]
It would be a match made in heaven if Sprint's data speeds and availability didn't suuuuuuuuuck soooooooooo baaaaaaaad.
[/quote] I was wondering about that. It's one thing if carrier with fat data offers unlimited but another if it's slow because of the number of unlimited users on a stresses infrastructure. I'm quite surprised they are still saying unlimited will stay.
Easy for them to do - 'cause when the Sprint network only dribbles data at a slow rate, who cares if the nominal capabilities of the next iPhone are 3G, 4G, etc.?!
(Spoken as a 14-year Sprint customer... I know, I know...)
Sprint paid Apple $15.5 billion for the right to 30.5 million iPhones? That's $500 per phone; what are they doing, buying them retail off Apple's website?!
And for this, they sold 1.8 million iPhones 4Q11 (when the iPhone 4S was new, and they had pent-up subscriber demand), and 1.5 million in 1Q12. Even if sales hold steady at an average of 1.5 million per quarter (less next two, then higher at the next iPhone roll-out), they'll still take 2 1/2 more years to churn through their commitment.
"Bet the company," indeed.