T-Mobile's data cap embrace leaves Sprint as lone 'unlimited' 4G carrier

By Brad Reed, Network World |  Mobile & Wireless, 4G wireless, data plan Add a new comment

T-Mobile has revamped its data plans to include a cap system, thus leaving Sprint as the only major U.S. wireless carrier to offer uncapped 4G mobile data plans.

T-Mobile's caps are significantly different from AT&T's and Verizon's, however, in that they don't charge overage fees to users who exceed their monthly caps. Instead, T-Mobile will knock down users who go over the cap to its 2G EDGE network, thus effectively limiting the amount of data they can consume on their HSPA+ network and slowing down their connection speed.

BACKGROUND: Bandwidth caps coming to AT&T wireline services

The T-Mobile caps also offer more bang for the buck than the plans offered by Verizon and AT&T. The carrier is offering four different monthly data plans: a 200MB plan for $10 a month; a 2GB plan for $20 a month; a 5GB plan for $30 a month; and a 10GB plan for $60 per month. AT&T, by contrast, charges iPad users $15 a month for 250MB of data and $25 a month for 2GB of data. Verizon, meanwhile, offers a 1GB plan for $20, a 3GB plan for $35, a 5GB plan for $50 and a 10GB plan for $80.

But while T-Mobile's data plans are cheaper and don't impose monetary penalties for overages, its decision to implement data caps means that Sprint is now the only carrier that isn't placing any limits on use of its 4G network, based on the WiMAX mobile broadband standard. Sprint CEO Dan Hesse has consistently said that Sprint and its partners at Clearwire have a strong enough combined spectrum portfolio to offer users unlimited mobile data without capping what they use. He has also said that the company could keep its plans unlimited by charging more if it eventually found that customers were consuming more data than the carrier could handle. Sprint still maintains a 5GB data cap for data consumed on its 3G EV-DO Rev. A network, however.

The wireless industry has been moving away from all-you-can-eat data plans and toward tiered service plans for the past couple of years. AT&T got the ball rolling on wireless data caps last year when it announced it was dropping unlimited data plans for the iPhone in favor of plans that offered between 200MB and 2GB of data consumption per month. Verizon shortly followed suit by saying it would implement a similar pricing scheme for its 4G LTE services that launched commercially in December.

AT&T has also said that it will start imposing data caps on its wireline services by slapping its DSL customers with a 150GB cap and its U-Verse customers with a 250GB cap. AT&T says that it will only charge for overages if wireline users exceed their monthly caps three times or more, however.

Read more about anti-malware in Network World's Anti-malware section.


Originally published on Network World |  Click here to read the original story.

ITworld LIVE

Mobile & WirelessWhite Papers & Webcasts

White Paper

Empowering Your Mobile Worker

Today's most productive employees are mobile, and your company's IT strategy must be ready to support them with 24/7 access to the business information they need across a range of mobile devices.See how corporations are meeting the many needs of their mobile workers with the help of Box.

White Paper

Converged Infrastructure for Dummies

As you know, everything is mobile, connected, interactive, and immediate. This is exactly why organizations need a highly agile IT infrastructure in order to keep pace with extreme fluctuations in business demand. This book will help you understand why infrastructure convergence has been widely accepted as the optimal approach for simplifying and accelerating your IT to deliver services at the speed of business while also shifting significantly more IT resources from operations to innovation.Intel and the Intel logo are trademarks of Intel Corporation in the U.S. and/or other countries.

White Paper

SMB's and the Consumerization of IT

As social media becomes an integral part of consumer technology, an increasing number of employees are bringing their personal mobile devices to work, enabling social media and collaboration in the workplace.

White Paper

Refreshing the Mobile Infrastructure

The convenient portability and high functionality of consumer devices combined with the ability to connect to the Internet almost anywhere and at any time are resulting in a growing mobile workforce realizing important productivity benefits - right at the point of contact with customers and partners.

Webcast On Demand

Mobility KnowledgeVault

How "mobile ready" is your infrastructure? This Mobility Knowledge Vault provides a wide variety of expert advice on how to strike a balance between end user ease-of-use and security. Prepare your organization with primers on data encryption and user authentication, device disablement and devising an employee-liable device strategy that makes both IT and users happy.

Sponsor: Dell

See more White Papers | Webcasts

Ask a question

Ask a Question