Sprint, the fourth largest wireless network operator in the United States, is planning to raise the monthly cost of its Unlimited Plan. It plans to raise monthly cost by $10 from $60 to $70 and the change will take effect on Oct. 16.
According to Engadget, the announcement was made as part of the company's "act now" promo. This promo entices customers to opt in for the Unlimited Plan before the price increase.
Sprint said that on top of customers who will opt in to switch by Oct. 15, current customers who are paying $60 for the unlimited data plan will keep the current rate. This means that the price change will only affect new customers. Sprint added that for existing customers, upgrading to a new phone will not increase a customer's monthly data plan cost.
Currently, Sprint is offering the iPhone 6S for $1 per month when customers trade in and when paired with the unlimited data will only cost customers $61.
Sprint CEO Marcelo Claure previously claim that his company is the absolute cheapest carrier. However, the recent decision to upgrade costs simply means that the current rates are simply unsustainable, according to Time.
Data traffic over Sprint's network have increase by a massive 947 percent from 2010 to 2014. This means that the company needs to upgrade its network infrastructure in order to lessen the strain and prevent congestion.
In recent months, T-Mobile overtook Sprint as the third largest wireless network provided in the US. Analysts are still skeptical whether the announced price increase will help Sprint's current position.