Sprint to ditch traditional contracts with Xohm, rely on subscriptions

We've yet to find an average joe (or jane) who just adores that two-year agreement they signed to receive a single subsidized device on day one, and while Sprint hasn't been one to let folks off the hook early, it is trying a slightly different approach with Xohm. Reportedly, the carrier will be relying on "subscriptions," which will enable customers to save more when paying for larger chunks of time, while not forcing them into anything long-term. On the same token, this also means that you'll likely be paying full price for any hardware. Notably, the outfit's CTO also made clear that Xohm "would not be backed by what the industry calls service-level agreements," so don't count on any kind of minimum bandwidth guarantee. As for pricing, the numbers are apparently still being worked, but it was suggested that the service would "probably be based on tiers."

[Via TechDirt, image courtesy of BroadbandReports]

[jmattick @ Sep 29th 2007 12:31PM]

This isn't exactly new...

Verizon has been doing this with it's BroadbandAccess cards for a while. Walk into any Verizon location, and yes, they will offer you a discount with a contract, but you can buy retail and get a subscription based service.

They advertise it right on the front of the aircard boxes.

[John M @ Sep 29th 2007 12:41PM]

its not like it matters with apple...u pay full price and have to sign a contract w/at t

[Kirby @ Sep 29th 2007 12:53PM]

I'm an Sprint customer and I love my 2yr Contract,

500Mins, Unlimited Txting, Unlimited Power Vision, 2 Solid a900's + 6700, which is soon getting an upgrade to a 6800 :D. And guess the price, under 70$/month ;)

And the 2yr contract on my end just forces Sprint to keep the current pricing. Plus w/ Roaming.. I voice as well as Data roam on Verizon's and Alltel's network so it feels like paying one company and getting access to all 3 ;)

As for this, this would be a interesting experience w/ Sprint as for the past...forever they always subsidized their devices, being a CDMA network it's not as simple as a sim card (though there are exceptions). It would suck tho to pay the highend of the hardware and not get some good service on the device... :\ (the minunium bandwidth guarantee)

[james @ Sep 29th 2007 1:56PM]

congratulations sir, YOU are the reason why cell phone companies are able to keep b***f**king the American public.

[John @ Sep 29th 2007 2:09PM]

Sweet deal (SERO...?) but James is absolutely right.

[sr @ Sep 29th 2007 2:17PM]

Thank heaven you have roaming on Verizon or otherwise you wouldn't get any service to speak of on Sprint.

[Logik @ Sep 30th 2007 7:00PM]

Don't renew your contract when it expires. If they threaten to disconnect/change your price, scare them by saying you will cancel your account and go with Verizon. :-) Worked pretty well for me. I've been on Sprint w/o a contract for almost 2 years now. 3 Lines (3 Treos) with: 1500 minutes (shared), Power Vision Plus, 500 Text, FIMF, 7pm nights,5% "loyalty" discount, 10% employer discount. My bill is usually $115-$140. You will probably get a lot of Sprint junk mail to get a new phone, but that's a small price to pay to not be tied to them.

[WhyNotV2 @ Oct 1st 2007 3:42PM]

I love my 2-year agreement as well, only mines a bit...better.

1350 Anytime
Unlimited Nights and Weekends
Nights at 7pm
Unlimited Text Messaging
Unlimited Sprint to Sprint
$42.xx including tax (have to love customer loyalty discounts)
and I upgrade my phone every 2 years for a steal because I too pull the "Going to Verizon" thing.

Why am I okay with a 2-Year contract? Because I've tried the others and they suck. Sprint isn't perfect, but they suck less than Verizon and AT&T...now, if they'd just get the iPhone (and not require some ghey $100 a month plan...)

[mian @ Sep 29th 2007 1:11PM]

I'm not sure I've ever seen Tivo pictured under the header "Mobile Internet" before.

[Carlos @ Sep 29th 2007 1:54PM]

Maybe this means you will be able to access content on your TIVO over the network, sort of like SlingBox

[rsgeek @ Sep 29th 2007 2:17PM]

i work at radioshack and get my sprint service for $15/month for 1000 anytime mins and nights start at 7 with unlimited text Internet and mms.

[James @ Sep 29th 2007 11:11PM]

It's so nice to be able to use Verizon's network without having to use their terrible phones. :)

[sr @ Sep 29th 2007 2:19PM]

I don't like Sprint for voice, but this WiMax stuff is a definite must buy for me. I like the fact that it is a separate service and I won't be bound to their devices or their contracts. Nokia N800 here I come!

[tim @ Sep 29th 2007 2:44PM]

They might call it broadband wireless, but you're better off tethering with EVDO then getting this service. The service is so slow, and they do a lot of port throttling.

[Trond @ Sep 29th 2007 5:12PM]

Hm, this sounds strangely familiar... Oh, wait, this is like a crappier version of how it's always been done in Europe!

Meaning that we buy our phones at retailers either contract-free at retail price, or with a (one year max) contract at a (heavily) subsidized price. Most retailers offer phones with contracts from many different MNOs/MVNOs. Each MVNO or MNO offer a bunch of different subscriptions/contracts (only this term really doesn't fit, as they aren't the same as American contracts), with different terms, different fees, and different monthly prices, which can be signed up for either along with a (subsidized) phone or whenever else. Getting a new phone while on a contract is no problem - you get the phone for the same subsidized price as everyone else, as long as you extend your contract for a new 12 months, or just buy a new phone at retail price and insert your old SIM. Further on, all phones use the same technologies, even if there is more than one MNO in a country, so that all you have to do to change to a different MNO or MVNO is get a new SIM. Also, international roaming is no problem, due to the same technologies being used, and the EU having set reasonable maximum prices.

[garbuhj @ Sep 29th 2007 5:19PM]

So this is just like buying a prepaid phone except it has internet.

Did I miss something?

[illutionz @ Sep 29th 2007 7:00PM]

LOL finally at least ONE carrier in the cellular 3rd world called the USA woke up and realized that 2 years contract sucks...
They should've done this way before... modeling many asian carriers... go to store, buy the device at full price and the contract is merely 3 months just to make sure no quick turnover. Plus the best thing with this model is that the device IS NOT CRIPPLED because they are not sold by carriers with carriers firmware....

Thank You Sprint!!! Hopefully more carriers in this cellular 3rd world comes to their senses soon!!!

[illutionz @ Sep 29th 2007 7:15PM]

Just want to add a little bit more stuff before somebody yelled at me...

1. Some of you might say "but but but we have PAYG for that"
No, what I mean is not PAYG and using different rates than the regular plan... What I mean is something similar to FlexPlan from T-Mobile right now

2. But But But, If we don't buy the phone from carriers, where do we buy it???
From various stores obviously... which means the phone will be unbranded and most probably unlocked. and that's always good for us, customers.

To put it simply, I am looking in the future at carriers who operates more like a Utility company which they should...
Won't you be mad if your cable/satellite company forced you to use THEIR BRANDED and LOCKED TV?
Or won't you be mad if your utilities company forced you to use their branded stove and nothing else??

[Sean DL @ Sep 29th 2007 9:31PM]

When no one will stand up and do it differently, it is kinda hard to know how it would be when it always been one way.


But then again, if the goverment can get CABLE to open up and stop forcing people to rent top set boxes from the CABLE COMPANY(Or more older analog, AT&T being force to stop renting telephones to customers) then maybe one day Cell Phone companies will change too....

[BoundinBK @ Sep 30th 2007 12:22PM]

I've had my sprint number for 7 years. No contract for the last 5.

Big, old school package, tons of help with hardware problems, new phones, especially when my phone was stolen out of my hand while i was talking on it (in brooklyn). My wife and I both have treos, 650 & 700 for a total cost of $300. pretty good deal.

Everyone I know that doesn't have them dogs them, but I don't. Except for their website. Stinks. But I don't make calls on it.

No complaints, really.

[dave @ Sep 29th 2007 10:17PM]

@kirby: amen. i have an a900, and my plan is a bit of a discount (family plan, so i can't get SERO, but still decently cheap), and although being under contract sometimes blows, not being able to raise the prices on me feels great. and for those of you who don't know, sprint has a better network than any other company in the US, they don't downthrottle their EV-DO (unlike some people...no, verizon, i'm not pointing fingers at all), and they have infinitely better reception than the GSM companies.

and satelite radio works the same way that xohm looks like it's gonna work...buy the phone (or PDA, or other device) at retail (or wholesale) cost with no contract to sign and no subsidy to save, but save per month on the service if you buy the entire year in one package. maybe xohm will copy sirius' idea of $500 for a lifetime subscription...that would own.

[John Stracke @ Sep 30th 2007 7:32AM]

The lack of a service level agreement is no surprise. *Nobody* does SLAs in the consumer space.