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Sprint undercuts AT&T, Verizon with cheaper mobile broadband plans

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Sprint Nextel (NYSE:S) unveiled new mobile broadband rate plans that offer more data for a cheaper price than comparable plans from AT&T Mobility (NYSE:T) and Verizon Wireless (NYSE:VZ).

Both new and existing customers can switch to one of the new rate plans below, which are available for mobile broadband devices including tablets, dedicated mobile hotspots, USB modems, netbooks and notebooks:

  • $50 per month for 6 GB of combined EV-DO and mobile WiMAX data.
  • $80 per month for 12 GB of combined EV-DO and mobile WiMAX.

Sprint also will launch a 3 GB/$35 per month plan for tablets and mobile hotspots and a 1 GB/$20 per month plan for tablets. The new rate plans replace all of Sprint's previous mobile broadband plans.

The new plans come on the heels of Sprint's decision to drop mobile broadband plans with unlimited access to Clearwire's (NASDAQ:CLWR) mobile WiMAX network, eliminating one aspect of Sprint's market differentiation (Sprint still offers unlimited data on its EV-DO network and Clearwire's WiMAX network for smartphone customers).

"The elimination of unlimited 4G could now be partially offset by the increase in the size of the data buckets," BTIG analyst Walter Piecyk wrote in a research note earlier this month previewing the new plans. "The reduced pricing could also stimulate higher usage and better subscriber growth."

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