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Sprint Introduces Monthly Wi-Fi Billing Plan

Posted on: Wednesday, 5 May 2004, 06:00 CDT

By ELLEN SIMON

NEW YORK (AP) -- Sprint Corp. introduced a $49.95 monthly wi-fi service Tuesday, but will face stiff competition from cheaper - or free - alternatives.

T-Mobile USA, Inc., which has wireless networks at about half the 5,601 Starbucks Corp. (SBUX) cafes around the country, charges $29.99 a month for wi-fi access. Its daily rate, however, is higher than Sprint's.

Sprint charges $6.95 a day for wi-fi (wireless fidelity) access, which provides a wireless Internet connection for mobile workers. The monthly wi-fi plan is its first.

Sprint's monthly price is "much too high," said David Gross, senior analyst at Wireless Data Research Group. "I don't know why Sprint thinks they can charge a premium."

Competitor Verizon Communications gives Verizon Online customers free access to wi-fi at hot spots it maintains in New York City. The company has built its wi-fi network around its payphones and access is available at nearby cafes and parks.

"We serve a different marketplace with what we call the travel ribbon: Airports, hotels, convention centers," said John Polivka, a Sprint spokesman. "We're targeting the business professional with high data-usage requirements. For what we're calling the power user, an unlimited access plan makes sense."

Sprint has 2,200 wi-fi hot spots in the country, but many cities, such as Spokane, Wash., are building free community wi-fi access networks in some neighborhoods.

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