The New 5GB Limits for Sprint and what it means...

Sprint recently changed their Terms and Conditions from Unlimited Data to a 5GB limit. Not a very smart move on Sprint's part since it scares many people that it would never even effect into looking elsewhere for Internet service. But it is the worry about going over that people don't want to deal with. First off, let's compare the overage limits on Sprint and Verizon based on the latest information available. Verizon has a 25 cent per MB (or $250 a GB) overage fee, but it is capped at $250 for the first 3 months a customer goes over, then no caps. So essentially after the 3 month warning, it is $59.99 for the first 5GB, then $250 for each additional GB. Sprint looks like they will not have overage charges, but will have the right to cancel customers if they continue to abuse the 5GB limit. Time will tell what they actually do and how many customers they terminate.

There is one lucky segment of users that still get Unlimited Data from Sprint: Business users! If you have a company with a Tax ID, you can still qualify for Unlimited Data.

Router Usage and the 5GB Limits

I believe these new limits will slow router sales and increase card sales. Why? If you have 2 power users, it makes more sense to get 2 cards and skip the router for two reasons. One, you now have 10GB to play with instead of just 5GB. Gone are the days of networking 10 computers on one Data Card. Secondly, you can now use the Internet in two completely different areas of the city or country at the same time. Isn't mobility the reason people pay a premium for Mobile Broadband anyway? Granted, the monthly cost will go from $60 a month to $120, but that is better than paying overage charges or getting canceled.