Sprint Says It Will Not Limit Wireless Speeds Within Network

14th Jun 2010 15:40

By Roger Cheng Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Sprint Nextel Corp. (S) said it doesn't plan to slow down or limit the wireless connection for its high-volume customers, although it would consider suspending the service for mobile broadband plans for excessive use out of the carrier's network. AT&T Inc.'s (T) move to a tiered pricing structure for data, and T-Mobile USA's decision to limit excessive use on its network have many expecting an industry-wide shift to control the amount of data traffic, which has grown fast enough to weigh on the quality of cellphone service. Sprint, in an effort to stand out from the crowded pack of carriers, has insisted it would not place any limits on data usage for its customers. But on Friday, technology blog Engadget noted that Sprint documents left the door open to potential limits for excessive data use, an act known as "throttling." The documents, however, refer to excessive use outside of Sprint's 3G network, or the 4G network run by Clearwire Corp. (CWLR), according to spokesman Mark Elliott. It does not refer to Sprint's core service. "Sprint does not, nor plan to limit speeds, nor change a customer's ability to use any particular application or Internet site," Elliot said. The limits would also only apply to mobile broadband plans relating to devices such as mobile broadband cards, USB modems and other embedded modems, which would apply more to business users. Sprint would be on the hook for its customers' use of data on another carrier's network, and likely wants to limit roaming fees. Excessive use could lead to Sprint suspending the off-network service until the customer's next billing cycle, or if the customer opts into a plan with off-network overage charges. Sprint plans to apply these changes in the middle of July. The carrier, which is working to turnaround its flagging postpaid business, has hinged its marketing message around simple, unlimited voice and data offering. A move towards any limits would run counter to its strategy. Sprint's peers, however, have taken more direct action to address the issue of growing data traffic. T-Mobile, which is owned by Deutsche Telekom AG (DT), said in April that it would materially slow down users who had gone over 5 gigabytes of data within a month. Rather than throttle, AT&T opted to place hard caps of 200 megabytes and 2 gigabytes in exchange for a slightly lower cost service, but adding charges if those limits are exceeded. Verizon Wireless, which is jointly owned by Verizon Communications Inc. (VZ) and Vodafone Group PLC (VOD), hasn't made a move, but it is widely seen following AT&T's steps in eventually moving to a tiered structure. Sprint shares rose 0.6% to $4.90. -By Roger Cheng, Dow Jones Newswires; 212-416-2153; [email protected] (END) Dow Jones Newswires June 14, 2010 10:40 ET (14:40 GMT)