Sprint Rolls Out Unlimited Data Plan for 4G Tablet to Drive Adoption

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Sprint's New Mobile Data Plans

Source: Sprint's Official Website

Sprint (NYSE:S) has slightly tweaked its tablet data plans when it launches its first WiMax tablet, the HTC View 4G. In addition to plans that cater to 1 GB, 3GB and 5GB data tiers, Sprint will add an additional data tier of 10 GB as well as unlimited WiMax data usage option for customers subscribing to data tiers of 3 GB and above. [1] Clearly, the aim is to increase the average data revenue per subscriber by offering customers an incentive to add to their data plans in the hopes of fending off competition from AT&T (NYSE:T) and Verizon (NYSE:VZ).

What would this ultimately achieve for Sprint?

By having customers subscribe to higher tiered plans and letting allowing them access to WiMAx, Sprint could is opening the door on more WiMax pricing plans in the future and will take advantage of customers’ increasing data use. The plans should help customers shift more quickly to higher priced data plans, which are a lucrative and growing segment for the mobile phone carriers.

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Our price estimate for Sprint stands at $5.84, implying a near 15% premium to the market price.

See our complete analysis for Sprint

 

Notes:
  1. Sprint to tweak tablet data plans, will add unlimited WiMAX, FierceWireless, Jun 14 2011 []