Much ado is being made about Sprint Nextel's move to offer Apple iPhones with unlimited data plans. Although the iPhone 4S has not yet hit the market, Sprint is whetting the appetites of its customer base that may want a less-expensive model with the promise of a $99 iPhone 4 running iOS 5 and an all-you-can-eat data package.

iPhone 4S will be available from Sprint starting at $199.99 for the 16GB model, $299.99 for the 32GB model and $399.99 for the 64GB model, beginning Oct. 14. iPhone 4 will cost just $99.99 for the 8GB model and is available now. The prices demand a two-year contract.

"Our unlimited data plans are the perfect fit for iPhone customers," said Sprint CEO Dan Hesse. "Sprint's unlimited data plans provide more value than metered plans from other carriers. Our customers can take advantage of the innovative features of iPhone without worrying about overage charges or surprises on their bill."

Sprint Scores on Pricing

Hesse is not just blowing smoke. AT&T and Verizon Wireless, the two other wireless carriers that offer the iPhone, don't offer an unlimited data package for the iPhone. In fact, AT&T is throttling heavy users on its network. Rolling out the iPhone with an initial unlimited data plan has been the go-to-market strategy for each of the U.S. carriers.

"AT&T and Verizon both offered unlimited plans when they first rolled out the iPhone and then pulled back," said Michael Gartenberg, an analyst at Gartner. "This unlimited data option may be something that will convince new iPhone buyers to move to Sprint. The one thing about those plans on other networks is early buyers got to keep them, if they wished, and some still maintain those unlimited plans."

As Gartenberg sees it, since the iPhone is selling at about the same price from all three U.S. carriers,...

2011-10-07 04:14:03