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October 04, 2011

iPhone Could Help Even the Playing Field for Sprint

By Beecher Tuttle, TMCnet Contributor

Sprint is no longer the only girl at the ball without a dancing partner. The nation's third largest wireless operator will join the likes of rivals Verizon (News - Alert) and AT&T later this month when it begins selling the iPhone for first time ever.



The news gives Sprint a puncher's chance to remain a viable player in a wireless market that has been dominated in recent months by the nation's top two providers. Starting on Oct. 14, Sprint will begin carrying the iPhone (News - Alert) 3GS, the iPhone 4 and the iPhone 4S, the newest addition to Apple's smartphone family that was unveiled earlier today.

The addition to Sprint's lineup will certainly help the carrier hang on to customers who are enticed by the iPhone. But it might also enable Sprint to steal some customers back from its closest competition. Early word is that Sprint will continue to offer its unlimited data plan, something that AT&T (News - Alert) and Verizon customers can't enjoy unless they are grandfathered into a previous offering.

If Sprint sells the iPhone at the same subsidized price as the others – which it is expected to do – there is certainly some motivation for users whose contracts with rival carriers are coming to an end. Unlimited data – especially on an entertainment-focused device like the iPhone – is something that will at least raise the eyebrows of mobile Web junkies.

Want proof that Sprint needed the iPhone to survive? Various media outlets are reporting that the carrier has agreed to buy 30.5 million phones whether they sell them or not. This means that the company will pay over $20 billion for access to new Apple iPhone through 2015. Yeah, it's that important.

The Wall Street Journal reported that Sprint CEO Dan Hesse (News - Alert) told his Board of Directors that even with aggressive sales projections, the company likely won't profit from the deal until 2014. Until then, Sprint better hope the Department of Justice truly slams the brakes on the AT&T/T-Mobile (News - Alert) merger, which Hesse believes could seal the fate of Sprint with a single blow.

Check out TMC’s Chris DiMarco's piece on the iPhone 4S for all the details on Apple's new handset. The headline-grabbing features are a new processor, a higher resolution camera and improved battery life.


Beecher Tuttle is a TMCnet contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.

Edited by Carrie Schmelkin

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