UPDATE: Sprint Mulls Suspending Excessive Roaming Data Users

14th Jun 2010 19:11

(Updates to add details on the plan) By Roger Cheng Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Sprint Nextel Corp. (S) said it would consider suspending mobile data service for laptop customers who excessively use it outside of the carrier's network, though it still doesn't plan to limit smartphone users. Sprint plans to change its policies for data service for laptop users with mobile broadband cards or USB modems, a spokesman said. The changes won't apply to users of smartphones such as the recently launched Evo 4G. Sprint already has a cap of 5 gigabytes of data usage within the network, and 300 megabytes of roaming data. Starting on July 11, excessive roaming data usage could lead to Sprint suspending the service until the customer's next billing cycle, unless the customer opts into a plan with extra charges for off-network usage. Sprint plans to send a text message or email alerting users when they hit 75% and 90% of their allotted data. The plan marks the latest step in an industry-wide push to control how much data runs through the wireless networks. While Sprint insists its in-network service remains unlimited, AT&T Inc. (T) has moved to a tiered pricing structure for data, and T-Mobile USA has decided to limit excessive use on its network. The company declined to say how many users could be affected. The mobile broadband plans cost $59.99 a month. If they go over their limit, customers have the opportunity to sign up for a metered option of 5 cents per megabyte on the Sprint network, and 25 cents per megabyte when roaming. For customers who roam on the CDMA network overseas, Sprint plans to send notifications when the customer's bill hits $250, and at every interval of $250 until $1,000, when service is suspended until the next billing cycle. Sprint, which is working to turn around its flagging postpaid business, has hinged its marketing message around a simple, unlimited voice and data offering. A move towards any limits would run counter to its strategy. But on Friday, technology blog Engadget reported 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 by mobile cards 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 phone 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. Sprint's peers 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 14:11 ET (18:11 GMT)