First came Clearwire, almost daring users to tax its WiMax 4G network with a no-data-cap pledge. Now Clearwire partner Sprint is taking a similar approach as it rolls out its 4G services on that WiMax data network, saying it has no plans to put data caps in place. At least part of the reason is that it definitely saw users limit usage on its 3G network when it put a data cap in place — behavior it isn’t looking to encourage on its 4G network, according Todd Rowley, Sprint’s vice president of 4G.
Network World has a report:
At some point in the future, if average data use goes much higher — Rowley quoted an arbitrary figure of 20GB per month — Sprint might cap users’ monthly downloads, he said. All of Sprint’s WiMax plans also include 3G service and are subject to the usual 5GB cap for use of that network. Sprint has no current plans to remove the 3G cap, Rowley said.
Sprint and Clearwire, which formed their joint venture in 2008, are sitting on a huge amount of radio spectrum that they are not even close to exhausting, according to figures Rowley shared.
Connected Planet’s take,
Kevin Fitchard:
I know Rowley was just throwing out a random figure when he told Network World 20 GB, but the number is telling. Clearwire and Sprint have to have numerous customers consuming more than 20 GB a month today. And if 20 GB is the cut-off point at which it costs more to deliver service than Sprint and Clearwire take in, that means there are some high-use customers essentially already being subsidized by low-use customers on the Clearwire network.
If that’s the case, I doubt Clearwire, Sprint or their 4G customers are too worried about it just yet. They probably are anywhere near facing the problems AT&T encountered with the iPhone, where a small percentage of customers not only explored the outer bounds of “unlimited,” but created such a network traffic jam, the user experience was degraded for all 3G users. It would be naïve though to assume such a thing couldn’t happen to Clearwire’s WiMax network, no matter how much spectrum it has and how efficient its 4G network is. I think Rowley is acknowledging that, though. He’s not saying Sprint is going to come down with draconian or arbitrary caps. He’s just saying that Sprint will continue to offer as much broadband freedom to its customers for as long as it can within the bounds of reason.
What I interpret that mean is if a handful of customers are consuming 20 GB or even a 100 GB a month, it’s no problem. As long as the capacity is there and it doesn’t have any significant effect on operating costs, then let the boys play. But if average overall use per customer pushes up against the point — be that 20 GB a month or whatever number — that Sprint starts taking an operational loss, the overall network experience to all users is degraded, or Sprint and Clearwire would be forced to invest in more infrastructure without the expectation of increased revenues, then Sprint and Clearwire will have to impose some kind of soft cap or tiered data plan structure. But as long as Sprint is nowhere near that point now, why poison the market with talk of data caps?
I think the bigger problem Sprint faces is how to price the connections for new devices that hit the market. Right now, they have the HTC EVO 4G and 4G modems, both of which are different categories with different pricing plans. But what happens when new categories of devices like tablets and embedded netbooks start rolling in? How do you determine the monthly charge for each device without being arbitrary? A USB connection to a laptop has the potential to consume much greater volumes of data than a tablet like the iPad because of the suite of PC applications at its disposal, but I guarantee there are a lot of iPad users sucking down GBs at a much faster rate than the typical 4G laptop user. Is it fair to charge the tablet user a cheaper rate? If so, how do you determine those rates, and do they shift over time as true usage patterns emerge? If anything, I think those headaches will drive Sprint to tiered data plans far faster than any concern about network congestion.
That’s our take on this. Let us know what you think in the comments section below:
Here is what you and other writers frequently leave out of similar discussions – the deception. When I look at Sales pitches in NYC NY – Sprints pitch seems like oh wow i get free downloads but the nearest area with 4G are in Syracuse NY & Rochester NY – Nothing in the tri-state area – nothing in the state of New Jersey or CT – sprint and other carriers are not doing bait & switch – but they are saying it will be coming here soon without any details.
If i were creating a commercial for Verizon on “its the network” – which they also lack in 4G – Sprint unlike AT&T would have a bigger problem.
They should start selling per bandwidth per MB and consumer wins. If a user have a high bandwidth usage he pays dearly for it. I would propose using something like 10 – 50 cents per MB. So miser internet user like us who use internet for email, browsing internet wins. Those with high internet usage will also not pay high bill as the cost is $30 for 5 GB if my math is correct.
Also I like to make cell phone minutes be also per minute usage so we can pay for what we use.
Good for network (all the usage is paid for), choice for consumer (pay for what they use and not subsidize high usage customer).
When you know this stuff (e.g., how to conduct a reverse phone lookup for free), you’re supposed to share. I mean my eyes literally welled up in tears when I heard how selfish some people can be with “free” information!!