Tech Analyst Jeff Kagan: Verizon Dropping Unlimited Wireless. Sprint?

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Atlanta, GA, July 7, 2011 — STATEMENT FROM JEFF KAGAN, Tech Analyst at jeffKAGAN.com

Verizon Wireless Dropping Unlimited Wireless Data After iPhone.

Will Sprint Nextel Be Next To Get iPhone and to Drop Unlimited Plans?

If we pull the camera back we will see this unlimited pricing was just used to grease the marketplace. Until just a few short years ago smart phones were dominated by RIM and Palm. It grew at about 15% per year and we had a few hundred Apps.

Then the Apple iPhone and Google Android jumped into the smart phone market and everything rapidly changed. Suddenly RIM is struggling and Palm is down. Suddenly growth is in the 50% level and there are hundreds of thousands of Apps.

When this started a few short years ago the networks wanted to take advantage of the moment and decided to introduce unlimited wireless data plans. At that time I said this is not forever so enjoy it.

Then last year AT&T Mobility dropped their unlimited plans.

That meant we expected Verizon to follow.

They just did.

Now we look at Sprint and wonder if and when they will follow. I think they will, but will try and hang on to it as long as possible since it is a marketing advantage right now.

I beleive at some point Sprint will be forced to drop their unlimited plan as well. Will that have anything to do with Sprint getting the iPhone to sell? Perhaps. Perhaps Sprint is getting iPhone ready right now. They are handling the Google Android traffic well so far. Will the iPhone push them over the edge?

Smaller carriers have to offer customers either more or charge them less so customers will buy from them.

With the potential AT&T T-Mobile merger the pressure is even greater for Sprint to hang onto their unlimited plan as long as possible.

Other carriers with unlimited plans are keeping them and charge less. Just look at companies like Cellular South, US Wireless, MetroPCS, Tracfone and others.

This is the way the industry works. Larger companies charge more. Smaller companies charge less. That will continue.

Sprint has always been in the larger group, but perhaps they are getting ready to fall back to the smaller group because of the merger. That would be a shame.

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These comments may be quoted in news stories.

Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com

If you would like to discuss, call me at 770-579-5810 or send an email to jeff@JeffKAGAN.com

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Jeff KAGAN| TECH ANALYST | www.jeffKAGAN.com

Wireless, Telecom, HealthTech, CableTV & IPTV, Technology

Phone 770-579-5810 Email jeff@jeffKAGAN.com

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