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Sprint drops 600 Kbps video-streaming limit after outcry

Matt Hamblen | July 3, 2015
Sprint this week quickly reversed plans to impose a 600 Kbps limit on streaming video as part of a promotion called "All-In" that charges $80 a month for unlimited talk, text and high-speed data.

In addition to Claure's tweet, Sprint released a statement late Tuesday that said, "some customers raised concerns about a 600 Kbps limitation--and we are acting immediately to address those concerns."

Claure was quoted in the release saying "During certain times, like other wireless carriers, we might have to manage the network in order to reduce congestion and provide a better customer experience for the majority of our customers."

In addition to Entner, analyst Patrick Moorhead of Moor Insights & Strategy commended Sprint for removing the cap. "Their initial video limit was incredibly low, so low, that I have to question their understanding of the video download market and consumer usage patterns," Moorhead said.

"If Sprint has a network issue, that's not the consumer's problem, it's a Sprint problem," Moorhead added.

Jack Gold, an analyst at J. Gold Associates, said he understands the "two-edged sword" dilemma that Sprint faces. "If everyone started viewing multi-megabyte videos, their network would crawl," Gold said. "On the other hand, users are now accustomed to viewing videos on a continuing basis, and many are large files. Sprint is not in a position to tick anyone off. Their subscription levels are not doing all that well. "

Sprint is the third-largest wireless carrier in the U.S., after AT&T and Verizon.

Entner said his opinion about Sprint hasn't been altered by the flub over including the 600 Kbps cap in the original All-In plan. "This experience won't have any long-term impact," he predicted.

 

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