Sprint to Raise Smartphone Data Fees

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Sprint Nextel Corp. plans to add a $10 fee on top of its smartphone data-service plans later this month to offset rising costs from increased wireless traffic on its network.

Sprint already charges a $10 "premium data" fee for its 4G smartphones, the Evo 4G and the Epic, but on Jan. 30 will expand the fee to all of its smartphones. Customers on existing contracts aren't affected.


The move illustrates the dilemma carriers face in offering an all-you-can eat buffet of Internet browsing, music downloads and streaming movies to customers, while simultaneously keeping up with the rising costs of upgrading the network to handle that traffic. The issue is most critical for Sprint, which has wrapped itself in the mantle of unlimited shortly after Chief Executive Dan Hesse took over more than three years ago.

The extra $10 also narrows the price advantage Sprint enjoys over its rival carriers—the company has sought to undercut its competitors in an effort to stem its customer losses. The company's "Everything Data" plan, which includes free calls to any cellphone and unlimited data, now costs $79.99 a month. A similar unlimited plan would cost $99.99 at T-Mobile USA and $119.98 at Verizon Wireless. AT&T Inc. no longer offers unlimited data plans.

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