
With the iPhone 5 set to be released later this fall, there have been
some rumors that Apple may be looking to release the phone on both the Sprint
and T-mobile networks.
Piper Jaffray analyst Chris Larsen speculated as much
earlier this month in a report. "While we remain uncertain regarding the
next-generation iPhone's specs and features, we believe the most noteworthy
change could be the device's ability to run on more networks, specifically
Sprint and T-Mobile in the U.S.," Larsen stated.
The carrier that will
most likely make the biggest gains through the iPhone 5 release will probably
be Sprint, because they are currently the only mobile operator offering true
unlimited data, the holy grail for avid iPhone users. Sprint has never been shy
in voicing this fact in marketing material either. While competitors say they
offer unlimited data, there are actually tricks in place to discourage the use
of large amounts of data.
The discouraging
tactic is called data throttling. The practice involves slowing down a mobile
user's data speeds as they use more data. Currently, both Verizon and T-mobile
employ this practice on unlimited data subscribers. AT&T announced today
that they will begin throttling unlimited data subscribers starting on Oct. 1.
That leaves Sprint as the last standing cellular service to still offer true
unlimited data.
When the iPhone
launched on both the AT&T and Verizon networks, both companies initially
used unlimited data to attract customers, only to later pull back and offer a
tier system of paying for data.
If the iPhone 5 is
released on Sprint, the company will probably push the discrepancy over data
between them and their competitors even harder than they already do to make up
for lost subscribers.
Sprint announced
yesterday that they had experienced a 101,000 contract customer decline in the
last quarter, a number that was four times larger than what analysts had been
expecting.
Sprint also revealed
that they had made a loss of $847 million on $8.3 billion in revenue last
quarter. The loss was higher than last year's $760 million. The main reason was
that they had to spend more in order to retain customers.
Analyst Walter Piecyk
of BTIG LLC told Bloomberg News "It's costing them more just to maintain
their base than anyone expected."
In order to get out
of their current slump, Sprint is going to have to find a formula for retaining
and attracting customers at a lesser cost. Being able to be the only
mobile service to flaunt a true unlimited data iPhone wouldn't hurt.
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