Sprint limits data for 1% of unlimited customers
Sprint Nextel Corp., which boasts in advertisements about its "truly unlimited" network, actually limits usage for some smartphone customers who dial up excessive amounts of data, said Chief Executive Dan Hesse.
"For those that want to abuse it, we can knock them off," Hesse said at an investor conference Thursday. He said Sprint pares back data use for about 1% of users, a practice known as throttling.
Sprint has sought to distinguish itself from rivals AT&T Inc. and Verizon Wireless with its unlimited-data plans. The two larger carriers have introduced tiered data-pricing plans that they say help to manage data traffic and can cut some users' bills.
"You'd be shocked how much data you use in a month," Sprint said in a recent television advertisement."What happens if you go over? With Sprint, you don't have to worry; only Sprint offers truly unlimited data."
However, the Overland Park, Kan., carrier last year pulled the plug on unlimited-data plans for some devices, such as data cards and tablet computers. Hesse said this was necessary to clear room on the network for its smartphone users.
He said there were no plans to move to tiered data-pricing plans such as those of AT&T and Verizon Wireless, which is owned by Verizon Communications Inc. and Vodafone Group PLC. Sprint is the only national carrier to offer the popular Apple Inc. iPhone with unlimited-data plans.
Separately, Hesse said Sprint would introduce its high-speed fourth-generation mobile broadband network in 10 markets by July, including San Antonio, Atlanta, Houston and Dallas.
Hesse, on a conference call, cheered the breakup of AT&T's $39 billion bid to take over T-Mobile USA, though he said he expected there to be more industry consolidation.
The carrier fought against the deal, saying it would damage competition and lead to higher prices.Sprint shares fell 3% to $2.24 Thursday, and were inactive in recent after-hours trading.
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