Sprint’s Fumble of the HTC EVO 4G

Sprint recently announced the launch of the HTC EVO 4G – The World’s First 3G/4G Android Device, and America’s First 4G Mobile Phone. Matter of fact, it is also only the second 4G or WiMAX phone on the market in the world…

Sprint has been in a bit of a rut keeping current customers and gaining new ones, and this is the “flagship” phone that is their hope to change that. Additionally, Sprint also hopes to gain some new customers by having super-fast data on their 4G WiMAX network already LIVE in many markets.

Unfortunately, Sprint does not have a LIVE 4G network in San Francisco Bay Area, San Diego, Los Angeles, or even New York – some of the largest markets in the country for technology, mobile phones and chip manufacturing for the phones. So those who want this phone in all but 25 (mostly small) 4G markets will have to cope with their data coming from the existing EVDO 3G network.

While the phone is nicely priced at $199 with a new 2-year agreement, or eligible upgrade (after all mail-in-rebates and discounts are applied) and an Everything Data, Simply Everything or Business Advantage with Data plan is a great deal, its what Sprint requires as a little something extra as a “requirement”  is a little “too much”.

Sprint has stated that the phone has not only an 8 megapixel back facing camera, but a 1.3 megapixel front facing camera for “video calling and streaming” (provided via Qik), but also a 1Ghz Snapdragon processor (making it one of the fastest phones on the market) and because of this they anticipate people will use more data, and stay online longer. Because of this, they have also “required” that a $10 surcharge called “Premium Data Add-On” be added to any and all plans with an HTC EVO.

Last time I checked, “Add-On” was never a requirement for any services, they were optional. Sprint themselves actually cemented themselves a decade ago by giving customers the options of having selected add-on’s that most other carriers were forcing on their customers at a higher cost. So right there Sprint contradicted its own words by saying something that is an “add-on” is now a “requirement” on top of a different “requirement” rate plan that already includes unlimited data.

Lets also not forget that because Sprint anticipates customers will use more data that they also anticipate people will be using the device more on 4G then on 3G, since the device is promoted to be a 4G device FIRST over a 3G device. I guess Sprint forgets that a phone and its processor do not make a 3G or 4G network faster then it already is, but makes the phone process its own applications to run more smoothly.

Most of the areas that Sprint will sell this phone however are in the 3G areas, and this charge still applies. The charge is unfair since Sprint can not justify, nor can the phone actually use any more 3G data then any other 3G phone on the market. So how is a $10 required “add-on” for “Premium Data” logical or fair? It isnt… Oh, and to make it even more unfair… Sprint is requiring this $10 “add-on” for as long as the phone is on your account as a monthly recurring fee. This is ON TOP of your normal rate plan that already includes unlimited data, and ON TOP of your purchase price of the phone ($199 with 2-Year Agreement, or $600 No-Contract Upgrade). This terminology for the $10 charge changes daily as well.

Sprint has tried to justify this $10 charge with complete ignorant reasons as follows below…

1. Premium Data Add-On (What if you dont live in a 4G area or want 4G?)

2. Phone has a “faster processor” (So what? My BMW is faster too does that mean the road has more wear on it?)

3. You will use more data… (Really? You can predict my future? Dionne Warwick is that you?)

4. Its a requirement to have the phone.. (I thought paying the price of the phone was the requirement to have the phone – Am I renting the phone?)

Sprint, you have further alienated your customers.

If you want to say its for the faster processor of the phone, then charge more for the phone.

If you want to say its for the richer data experience and statistics show that people will use 3G and 4G more, then only charge people who want the 4G enabled.

If you want to say its a monthly charge to have the phone, then rent out the phone, or offer the phone FREE on ALL PRICE PLANS since the $10 a month ($240 extra over 2 years) covers your rental fee.

If you want to be smart, and keep customers, you keep them happy and waive this charge until they have 4G in their area, and then move customers over to either “Everything Data 4G”, “Simply Everything 4G”, or “Business Advantage with Data 4G” plans that are $10 more per month….

or….

Offer to waive this charge for existing customers adding a new line of service or upgrading, and only charge the new subscribers this fee.

I mean its pretty simple….

I know I have made my decision already. I am leaving Sprint for the last time and heading to Big Red Verizon. Even though Verizon plans actually cost on average $30-$60 more then Sprint for the same thing, Verizon doesnt distinguish its Smartphones by the amount of data they can receive or anticipate to receive, nor does Verizon charge customers for anticipated 4G services that are not being delivered. Oh, and most of all, Verizon doesnt charge a “$10″ what I call “rental fee” to have the privilege of owning a phone over the course of their contract.

Sprint, you really are about to get hit with some big time churn rates next quarter.. I assure you. Good luck, God Speed – you were innovative until you decided to be a little too innovative on how to screw your loyal customers over.