Will Sprint remove the $10 monthly premium charged on its 4G phones?

Will Sprint remove the $10 monthly premium charged on its 4G phones?
Clearwire is facing money problems, so every penny they can get from their deal with Sprint is a matter of life or death. Clearwire says that the agreement they have with Sprint means that the pin-dropping network must pay them for every HTC EVO 4G and Samsung Epic 4G owned even if the unit is used outside of Sprint's 4G network. Sprint, of course, disagrees and has taken the owner of WiMax to arbitration.

If Clearwire loses this battle, tens of millions of dollars that the firm so desperately needs each month will be gone-zap-vanished into thin air. In a filing with the SEC, the firm describes the arbitration with Sprint. "We have been engaged in ongoing negotiations with Sprint to resolve issues related to wholesale pricing for Sprint 4G smartphone usage under our commercial agreements with Sprint," Clearwire wrote. "On October 29, 2010, we received a notice from Sprint initiating an arbitration process to resolve these issues. The process is in the early stages, and its outcome is unknown."

Currently, Sprint charges owners of both of its 4G enabled handsets with a $10 monthly charge and approximately 810,000 people are paying the money without access to the faster speeds. If Sprint-which owns 54% of Clearwire-wins the arbitration, it could be possible that the monthly $10 charge, or 4G Tax if you will, could be removed. While good for Sprint's customers in the short term, it would be very bad news for Clearwire which is in desperate need of financing.

source: SEC via AndroidandMe

Related phones

EVO 4G
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  • Camera 8 MP / 1.3 MP front
  • Processor Qualcomm Snapdragon S1, Single core, 1000 MHz
  • Battery 1500 mAh(6.00h talk time)
Epic 4G
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5 Comments

1. oddmanout

Posts: 443; Member since: May 22, 2009

EVO & Epic without premium data charges?!?! Flat out 69.99 monthly?!?! Best move they can make. Especially with the competition rolling out their 4G networks with no additional fees. I knew this would happen some day. Lets just hope that things work out for the best.

2. phone333

Posts: 331; Member since: Feb 04, 2009

True but the only thing I'm worried about is "Data cap". The premium should just be optional if you want 4G.

4. kabukijoe

Posts: 102; Member since: Mar 06, 2010

I thought Verizon was going to introduce tiered data plans for their 4G?

3. ibap

Posts: 867; Member since: Sep 09, 2009

I have an Epic, and am not near any officially 4G area. But I do get 4G at work, and expect Sprint will soon roll it out city-wide - though that is not where I live, and I doubt we'll get 4G there any time soon. I'd love to not have the $10 fee, but I went into the phone with eyes wide open. Do we really want to cripple Clearwire and Sprint? And the whole 4G thing is getting ridiculous. Would the telcoms please quote some sort of max transfer rate for network and phone, and stop this nonsense of renaming an existing network as 4G and advertising it as such?

5. psn1819

Posts: 42; Member since: Jun 06, 2010

I also have a Epic 4G...This like needs to happen...Not Now but Right Now...I think this 4G charge is absolutely ridiculous...Especially for a developing 4G network.T-mobile has HSPA+ aka 4G now and they dont even charge theyre customers for that..Mind you theyre plans cost a little more but still..I figured since theyre the RIGHT NOW NETWORK...They should make this happen Right NOW!! LOL

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