Palm Pre Buzz: Monthly Costs Will Be Lower Than the iPhone


By Marisa Taylor

Palm has finally confirmed the rumors that it will roll out the much-hyped Pre on June 6, and is partnering up with Sprint as the Pre’s wireless carrier. But just like iPhone adopters had to swallow a two-year contract with AT&T, Pre fans are wondering just how much it will cost them above to sign a two-year deal with Sprint.

The Palm Pre device itself will cost the same as an iPhone - $199 (the Pre actually costs $299, according to the fine print, but they’ll knock off $100 with a mail-in rebate and a two-year service agreement with Sprint).

According to the Sprint Nextel customer service blog, Pre users can choose from the “Everything Data Plan” at $69.99 for 450 minutes or $89.99 for 900 minutes, including unlimited data and texting, or the “Simply Everything” plan at $99.99 for unlimited minutes, data, and texting. The AT&T service plans for the iPhone, on the other hand, require $30 a month for unlimited data and $20 a month for unlimited texting over and above minutes, which range from $39.99 a month for 450 minutes up to $99.99 for unlimited.

So essentially, iPhone users have to pay $150 a month to match what Sprint will offer Pre users for $100, which may be why AT&T is rumored to be cutting costs on its monthly service plans.

Readers, what do you think? Do Sprint’s lower monthly fees make you more likely to jump for a Pre over an iPhone? Have monthly service charges kept you from buying an iPhone?

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