With the intention of alter to towering mobile data use, the third largest American mobile phone network company, Sprint Nextel (NYSE:S), is raising its fees for latest cell phone punters by $10 a month. The swell will go into effect on January 30. Sprint Nextel’s lowest service plan for smartphone users will then cost $80 per month.
This latest price is going to be charged for each latest gadget activation, including mobile devices which are part of Sprint Nextel’s older 3G system. The phone provider already charges cell phone owners a special “premium data” surcharge of $10-a-month to use its faster ‘4G ‘ WiMax network. Sprint Nextel has good reasons for the rate boost, because smartphones naturally use ten times more data, compared to conventional phones. Today’s mobiles enable their owners to do far more than merely talk on the handset. And all the novel functions of cell phones require far more data, which costs.
But, even with this rate increase, Sprint Nextel smartphone service will still cost less than either the biggest American mobile network, Verizon Wireless (NYSE:VZ), or the second largest, AT&T Mobility. Nevertheless, Sprint Nextel’s move may alleviate the pricing pressure felt by the fourth largest American mobile service provider, T-Mobile USA (ETR:DTE). Because T-Mobile charges the lowest rates for mobile service, it has felt the price pressures in the US market the most, as the market for cell phones became drenched.
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