Sprint confirms it's implementing data usage caps

By Michael Hatamoto | Published May 20, 2008, 8:14 PM

A number of Sprint mobile broadband users have shown their disgust over an internal memo that indicated the company has placed a cap on its mobile broadband service.

In an e-mail and phone correspondence with BetaNews, Sprint officials discussed the reasoning behind its decision to implement a 5 GB per month overall use cap, and 300 MB per month for off-network roaming.

"Sprint is continually working to ensure a great customer experience that is available to all of its customers. Efficiently managing our wireless network is a big part of our commitment," a Sprint spokesperson told us. "The use of voice and data roaming by a small minority of customers is generating a disproportionately large level of operating expense for the company. We are enforcing the existing terms and conditions for phone plans. We are placing a limit of 300 MB per month on the amount of data use allowed while roaming off network as well as a 5 GB per month limitation on total wireless data usage for Sprint's connection and phone as modem plans."

"This limit is well within the range of what a typical customer would normally use each month." Sprint declined to disclose the amount of data a "typical customer" uses per month.

Unconfirmed reports earlier in the day inaccurately stated Sprint put the cap in place to help make a transition towards the future, in which it plans to launch its WiMAX 4G network before the end of the year. Assuming its Xohm WiMAX network can launch in Baltimore and Washington, DC as scheduled, Sprint will beat out both Verizon Wireless and AT&T, which plan to launch their 4G networks in 2009.

The company is now making an "extensive effort" to inform its customers about the pending changes, and to allow them to "change their usage habits before exploring any available options under the terms and conditions."

Existing customers are being notified about the change through messages attached to their bills that Sprint began mailing three days ago. The changes take effect 30 days upon receipt of the note. Starting in June, company officials will call customers to ensure they understand the changes made and to help better identify when they are roaming.

Comments

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Is there any loophole in their old contracts that permits the scope change? Even if they state they have the right to modify it (like credit card companies do), it's such a fundamental material change I would be surprised if they would win in court.

If I had their service, I'd just keep paying my old rate regardless of what they claim then take them to small claims court.

Bleh. I'm glad I'm not even considering Sprint. T-Mobile has been really good to us (though they don't offer service like this one) and I'm hoping AT&T is decent when I get an iPhone 3G (which I wish would offer a data service to a computer via bluetooth).

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Alltel still offers truly unlimited wireless plans, and will begin rolling out Rev A this summer. Who is Alltel's primary roaming partner?
Sprint.

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I Do not believe Sprint has the right to change the terms of a contract.We all signed the unlimited contract with the expectation that it would be unlimited for the life of the contract. Sprint even in fine print cannot grant itself disproportionate rights. I say we as sprint customers should ban together and discuss a CLASS ACTION LAW SUIT>

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You must be joking? A contract is a contract. They can't believe customers are simply going to accept changes without a fight? To my knowledge if they change the contract you can cancel without penalties.

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Its hilarious as they do this all the while CURRENTLY running TV ads with the new CEO touting new unlimited usage!

But "The company is now making an "extensive effort" to inform its customers about the pending changes, and to allow them to "change their usage habits before exploring any available options under the terms and conditions."

My @ss.

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Dear Mr. Patel,

Thank you for responding to the commercial featuring Dan Hesse, the new CEO for Sprint.

The 5 GB cap for internet usage will be in effect on 7/13/2008. I apologize for this inconveience. We do try to provide quality products for our customers. If you have any further concerns, please respond to this email.

Thank you for you time and understanding.

Sincerely,
Erin S.
Sprint
(757) 223-3289

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Sorry for the inconvenience? I'm sick of you wireless carriers. You think $60 a month is cheap? What the hell am i supposed to do? Turn off all the graphics on my browsers and download text only? I fled Verizon because of this, then a year later I fled AT&T, now I'm stuck with your broken promises. I travel all but 2 days a month. I don't have a hard connection whatsoever. I'm not a business traveler that checks his email and logs off. $60 is a lot of money for an ISP. I was promised UNLIMITED data.

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I'll wait to see what they do since I only have a PowerVision plan but use my phone tethered to the computer.

The only thing about the limit is that they're the last to do it.

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Sprint overcharged my small (US) company for over $50,000.00. We caught them doing it and now they refuse to refund the over-payments. You can read the full story at http://www.sprint-really-sucks.com

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And somehow Sprint cannot figure out why they are bleeding customers like a decapitated chicken.

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Hellzyeah!

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Exactly, just what they needed to do to reel all those customers back.

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I want my $2,000,000,000 penalty fee for you failing to provide the service you agreed to. Didn't you read it sprint?
I wrote it in between lines 408-409 in the fine print of your contract.

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Yet another reason NOT to ever pay a wireless phone company for internet access. Wireless providers have been ripping their customers off for a long time on internet access. There is absolutely no reason a wireless phone provider can't offer truly unlimited internet access at least for people who are not roaming on other networks.

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Corporations limiting the internet. Jeez, you'd think we live in China. Go capitalism!

There's got to be a better way. Government is toothless; business is idiotically hostile to consumers.

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2 Options:

1. CANCEL YOUR SPRINT SERVICE IF THEY CALL YOU
2. DO NOT AGREE YOU SIGNED A CONTRACT AND SPRINT HAS TO FULLFILL THEIR END. WHY NOT WRITE SPRINT A LETTER SAYING SOMETHING LIKE:
"My sprint service will now cost $9.99. This change will take place 30 days upon receipt of this note."

What next the $99 "(un) limited" calling on your cell phone is really 1000mins???!!!

un·lim·it·ed (?n-l?m'?-t?d)Having no ends or limits: boundless, endless, illimitable, immeasurable, infinite, limitless, measureless, unbounded.(NOTE: This term does not apply to Wireless or cable companies)

How can a contract be valid if the contract changes without the both parties agreeing??????

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Contract
1. General. An agreement backed by lawful consideration to carry out actions, exchange assets, or refrain from doing things. A legally valid contract is reached through mutual agreement by persons with the capacity to negotiate, in which each gives up something of value. It must be for a lawful purpose.

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Ok.. I found the footnote at the bottom of the order page.. They keep the write to change or terminate at any time. But if you terminate it's $200!!!

Sprint Mobile Broadband Network reaches over 200 million people. Coverage not available everywhere. Please see www.sprint.com for a complete list of available markets. Not avail. in all markets or retail locations. Unlimited Data Plan Options: Credit approval, and up to $36 activation & $200 early termination fees apply per line. Available for single-use Sprint Mobile Broadband Card use only. $59.99/month offer requires 2-yr agreement. $79.99/month offer requires 1-yr agreement. Service defaults to Sprint PCS Vision Network, where available, if Sprint Power Vision network is unavailable. May not be combinable with other offers. Terms and conditions apply. Sprint reserves the right to modify or terminate these offers at any time. Use subject to terms of your agreement with Sprint. ©2007 Sprint Nextel. All rights reserved. Sprint, the “Going Forward” logo, the NEXTEL name & logo, & other trademarks are trademarks of Sprint Nextel.

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"They keep the write to change or terminate at any time. But if you terminate it's $200!!! "

I'm pretty sure every provider is the same way....

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Most discouraging. The other carriers had imposed a 5GB limit some time back. Sprint was alone in offering "unlimited" service. Sigh.

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Thats it for me, not because I would go over the cap but just on principal. Besides my 2 year contract is up in august. This is a huge disservice to the folks thats just signed a 2 yr contract. $65 a month should not include a bandwidth cap period.

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My thoughts, sent to others:

Subject: Sprint goes backwards, threatens emergency communication

Dear Editor:

The recent news that Sprint PCS is going to impose a 5GB/month transfer limit on data cards is --
simply put -- appalling.

I signed up in July 2003, paying $80 per month for the unlimited usage. For nearly five years I've
added my dollars into Sprint for future development of faster and better service. And this is how I'm
rewarded for being a loyal customer? It is a slap in the face, to say the least.

I've never abused the data card service. Some months I rarely use it. There are other months,
however, I'm on the road and depend on the data transfer. I bought into the unlimited plan for two
major reasons: a) a predictable monthly expense for the business and b) certainty of knowing that
when I needed a lot of data throughput that I would have it.

My data card is also put into use in emergency services. Putting a cap at 5GB creates too much
risk to depend on Sprint.

I find Sprint's logic very odd considering that Sprint has been very active in promoting mobile
computing. I also find the logic to be at odds on Sprint's retention rewards. I have been a long-term
voice customer -- since February 2001. There have been many times I've decided to quit Sprint
and I am lured to stay through an increasing number of anytime minutes dangled in front of me.
Removing the unlimited minutes on the data card contradicts the concept of retention.

Finally, I suspect that part of the reason for the cap is simply because Sprint has mis-managed
customer service and infrastructure for so long that it needs yet another way to raise revenue -- by
hitting data card users in the pocket for usage greater than 5GB per month, similar to the
mysterious $437 overcharges on my friend's three-phone account for Internet usage AFTER a
block was put on all phones.

Sprint had a good thing going to keep customers around. Now it does not.

===

May 20, 2008

Subject: Sprint threatens emergency communications

Dear Emergency Workers:

I'm writing to give you a heads up about a drastic and backward terms of service being imposed by
Sprint PCS on the use of data cards. I belive this new policy will adversely affect use of Sprint data
services for emergency services and casts serious doubt that Sprint can be a dependable partner
in this regard.

In July 2008 Sprint will replace the unlimited data usage with a 5GB/month cap on data card usage.

I know many of you and your organizations keep the data cards on hand in case of emergency,
using the cards very little when there is no demand. Now that Sprint is putting a cap on the data
usage, the cards may well be useless when there is a demand. Imagine having your
communications go dead because the 5GB cap was reached.

I think we must look around for alternatives, as Sprint has now put themselves into the realm of
being an unreliable partner. I personally think Verizon has slightly better coverage, so for me, it
makes sense -- price and usage being the same -- to switch to Verizon. We should be able to do
this during a period without the early termination fee.

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