Sprint has confirmed to PhoneNews.com that the Nexus 5 is no longer banned from BYOSD.
PhoneNews.com led the brutal, community-wide criticism when Sprint imposed the restriction on Nexus 5 from being used on prepaid wireless networks, including FreedomPop, Ting, Ring Plus, and others.
As of today, all LG/Google Nexus 5 devices are cleared to activate on BYOSD providers, provided the device is not lost, stolen, or currently under subsidy from Sprint.
However, Sprint is defending its decision to prohibit other “iconic” devices from BYOSD – a change imposed after many of the devices launched. Sprint argues that they never intended for devices like the Samsung Galaxy S4, HTC One, and Sprint-branded Motorola X units from being used on BYOSD. Further, they argue that the high device subsidy costs played a key role in this decision-making. Finally, Sprint confirmed devices already active on BYOSD could remain so, despite new BYOSD activations being banned.
After initially arguing, in spite of previous reports, that Sprint subsidized Nexus 5 units, Sprint eventually confirmed to PhoneNews.com that many, if not most Nexus 5 units will be sold unsubsidized from sources like Google Play. Sprint sells the Nexus 5 unsubsidized at $449, but offers it for far less with a two-year contract. Google offers the Nexus 5 without contract for $349, a price both Sprint and T-Mobile (the two carriers Google endorses the device for) claim the Google Play sales are not subsidized by carriers.
Part of this confusion stems from that BYOSD does not distinguish between devices purchased at the “full retail” price, devices purchased on-contract, and devices purchased on-contract and then released via the subsidy being paid off. Some have abused the subsidy process by purchasing a new device, swapping in an older/broken device, and then terminating service, leaving the Early Termination Fee unpaid. Other carriers, like Verizon, AT&T and T-Mobile, track the subsidy status and release a device for unlocking to other carriers when the subsidy has been paid or the customer has established a tenure with the carrier.
No Nexus device has never been barred by a carrier previously from being used on an MVNO’s plans. Google intended for Nexus devices to, at least in part, cater to the growing number of consumers that opt out of paying for device subsidizes, and select a prepaid plan, often on an MVNO or second-tier carrier branding like AIO Wireless on AT&T, or MetroPCS on T-Mobile.
Both the Nexus 4 and Nexus 5 were and are priced between $300 and $400 unsubsidized, with comparable devices typically costing hundreds more unsubsidized. These higher-volume devices cost less to most consumers, because they are typically purchased on-contract at launch, where carriers offer subsidizes that often exceed the Early Termination Fee (ETF) associated with the plan.
While PhoneNews.com received early reports, including from Sprint itself, that this restriction was quickly being dropped, we waited until the middle of this week because of initial confusion inconsistencies in official statements between Sprint and its MVNOs. Clearly, this was a fluid situation.
Going forward, we hope Sprint revises its BYOSD policy once more, and make it plain and simple – if a phone is still under contract, the subsidy has to be paid off before it can be used on BYOSD. This mirrors T-Mobile’s and AT&T’s device unlocking policies. And, keep in mind, the FCC made clear last week it is demanding the industry adopt one unlocking policy on devices. If Sprint doesn’t work with CTIA to embrace a policy that is more consistent, regulators may do it for them.
To activate a Nexus 5 on Sprint MVNOs, they will need to mail you a SIM card. This is different from most Sprint devices, which either ship with a SIM card installed, or have an embedded SIM that cannot be removed. Ting has started a blog post for this process ahead of a formal rollout. RingPlus and FreedomPop reportedly will accept a blank Sprint SIM card purchased from a Sprint Retail Store – though some stores have been unwilling thus far to sell the SIM cards for this purpose.
Thanks to You
Finally, and on a personal note, I want to thank you the reader. As you may know, I don’t cover news of the day here anymore. I still like to pontificate, but I’ve moved on. Sprint clearly heard the reaction from not just me, but thousands of people like you. The initial coverage that we ran on this one topic, quietly got broader social media coverage and attention faster than any previous article that we’ve ever run.
This showed that Sprint, under the new controlling-ownership of SoftBank, has the cash and the breathing room to respond quickly when they make a mistake. We still think banning any off-contract device from BYOSD does more harm to Sprint’s image than helps the balance sheet, but banning unsubsidized devices like Nexus from BYOSD was dumb as dirt. Sprint moved quickly to undo that mistake.
Now, if you’ll excuse me, I’m cancelling my $299 Motorola X order on Republic Wireless and ordering a Nexus 5 for use on FreedomPop BYOSD. Republic’s $10 unlimited voice plan and $299 Moto X price-point is truly epic, but I think after this I’ll appreciate using a Nexus 5 for $0 per month a bit more.
[…] Follow-up: Sprint has removed Nexus 5 from the BYOSD ban list. We have in-depth coverage in our follow-up article. […]
It would be interesting to know your sources for this information (I read your previous post, which needs a serious edit to point to this “update” for the Nexus 5).
But, i have to respond to one statement you made here which is completely false:
“These higher-volume devices cost less to most consumers, because they are typically purchased on-contract at launch, where carriers offer subsidizes that often exceed the Early Termination Fee (ETF) associated with the plan.”
In fact, it’s completely opposite. These higher-volume devices cost MORE to most consumers; because when purchased on-contract over a 2 year plan on Sprint’s cheapest plan ($110/mo), the consumer ends up paying $2,640 over the two year term – or pay the ETF penalty. In addition, Sprint hits you with a “premium data” fee of $20/mo for smart phone users, plus $4 international calling rates. That’s an additional $576 for a total of $3,216 over the course of two years. All of this is pre-tax, and NYS has some of the highest cell taxes on the country: https://ting.com/blog/understanding-mobile-phone-taxes-and-regulatory-fees/
Purchasing a device out right, for $400 per say, allows you to to easily spend $2000 less over the course of the 2 years for a Ting-ized plan, or a pre-paid plan. Ting makes a value point: no one needs unlimited. Pay for only what you use.
I’ve personally switched my family to Ting 7 months ago, and recently purchase the S4 out right through Ting (which was $150 less than what Sprint charges “out right.”). I was previous a 14 year member of Sprint and went through the rollercoaster right of Premium White Glove Member service, Premium Member Benefits, Grandfather Discounts, etc. Then Sprint eliminated all of these, and my bill skyrocketed to $180/mo for 2 “smart phone” devices on the cheapest “Family Data” plan they had, paying these ridiculous “Smart Phone Premium Data” fees of $20 each, International Long Distance privileged, and etc, it was time to get out.
Now at Ting, my bills have averaged $33/mo – including all taxes – for 2 devices. That one fact alone is only $800 for 2 years of service – including all taxes (the Sprint prices above was Pre-Taxed). That alone saves me over $3000 (once you add tax to Sprint’s bill for 2 years). Therefore, paying $570 (minus a $25 discount for $545-ish) for a new S4 was a no brainer. Heck, I am now buying an Nexus 5 and the Ting SIM card today for another $400 to replace a 3 year old device. I will still save $2000 of the 2 years, which started 7 months ago.
If that wasn’t enough, I’ve referred a number of users to Ting, of which I got a $50 credit the first time and a few $25 credits after that to actually wipe our 2 or 3 bills completely.
Bottom-line, that statement that consumers “devices cost less to most consumers [if buying on contract]” is false because you have to take into the account the monthly costs over that 2 year term. That is the snakeoil and lies that major carriers (Sprint, Verizon, AT&T) use to trick people into paying those outrageous 2 year contracts; and, if you try to leave, try to scare you with ETF fees. I was very happy to pay my $350 ETF fees for my two devices to get out of contract, which still saves me $1,700 per my calculations above.
Get out of contracts guys (can gals)… Pay for only what you use.
Eric, we were referring to device cost at the time the customer signs up. Obviously the device cost is recouped many times over during a 2-year agreement.
But, an abuser doesn’t care, often times they don’t even pay the first month of service before swapping in a broken/damaged device, and selling the subsidized device on eBay.
Scammers will do what it takes to abuse the system, we recognize that Sprint does need to have some protections against BYOSD being misused… but you’re preaching to the choir. If you read our previous post, we think there are better ways to get the job done.
[…] Follow-up: Sprint has removed Nexus 5 from the BYOSD ban list. We have in-depth coverage in our follow-up article. […]
So as of today, December 12. I can buy a Nexus 5 from the Google Play store and a Sprint SIM/UICC card, pop it in the Nexus 5, and activate it on Freedompop?
Johnny,
FreedomPop and GigaOm sparked a wave of miscommunication on their BYOSD program. Presently, FreedomPop has corrected the record after our reporting, and informed the media that they can only activate 4G WiMAX and 3G-only smartphones.
So, while Sprint has lifted the restriction, the only prominent MVNOs that can activate Nexus 5 are Ting and RingPlus.
It is not clear what the problem is on FreedomPop’s end, they have not clarified what technical barriers are preventing them on this.
We apologize for the confusion on this topic – we only relayed what FreedomPop told the media, which at the time was that they could activate 4G LTE devices. This turned out to be incorrect information, but we did our due diligence to check with FreedomPop directly at the time.
I tried FreedomPop last week and was told the Nexus 5 was still not able to be used on FreedomPop. No word on when it would be, just that they were working on it. Here’s wishing they work quicker.
[…] year when the Nexus 5 was initially banned for activation outside of Sprint itself, only for the ban to be relaxed after customer outcry against Sprint, owing to the carrier not subsidizing the device directly and buyers demanding the […]
Great read. Like those of you that are or were on Sprint, I had 4 phones and Sprint’s ZTE tablet on contract for $358 mo. It was killing my wallet with 2 household incomes. I had made every attempt to get my bill reduced to no avail. Much of Sprint’s charges are the high Premium Data and taxes. My last call to them was to terminate service and accept the ETF but, not before I found older phones for a few dollars to replace my Premium phones resulting in Sprint unknowingly releasing them from the contract so I could go MVNO. I started with Ting on my phone only before I realized I used it more often than I thought causing me to monitor my usage daily after the second week to keep my cost under $50 mo. I really liked Ting but decided I didn’t have the need for LTE and switched to ECOMOBILE for a flat rate of $50 mo. unlimited. I may only be saving $185 but that extra savings is going to my mortgage. When my GS3 (still mint cond.) starts acting up, I will purchase an unbranded phone and currently thinking these Google phones or any unlocked phones (from Everbuying.com) and testing MVNO’s for the other 2 major carriers.
There are currently 3 MVNO’s that have LTE but, are limited on what phones can be activated. I caution EVERYONE to not even consider Expo Mobile. Here is a link to all current Sprint MVNO’s. This is updated every so often;
http://www.prepaidphonenews.com/2013/02/sprint-and-sprint-mvno-plans-compared.html