Sprint ups fees for smartphone users by $10
(Reuters) - Sprint Nextel (S.N) plans to increase monthly fees by $10 a month to $79.99 for smartphone customers, edging its prices closer to those of bigger rivals Verizon Wireless and AT&T Inc (T.N).
Starting January 30, Sprint will increase its price for smartphone users, which use roughly 10 times more data services than typical customers, instead of limiting data usage like its bigger rival AT&T has done.
The $79.99 fee would include 450 minutes of talk time, unlimited mobile to mobile talk and unlimited texts and usage of data services such as Web surfing unless the customer is roaming off Sprint's network.
Similar services would cost about $110 at its biggest rival Verizon Wireless, a venture of Verizon Communications (VZ.N) and Vodafone Group Plc (VOD.L).
Wells Fargo analyst Jennifer Fritzsche estimated that even after the price rise, Sprint's service would still about 33 percent cheaper than its bigger rivals.
"This move is interesting in terms of timing as we believe Sprint may be more confident in its pricing power it has with its customers," Fritzsche said in a research note.
Sprint shares were down 7 cents at $4.38 in early trading on the New York Stock Exchange.
(Reporting by Sinead Carew; editing by Derek Caney)
Credit: Reuters (www.reuters.com)
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