Sprint’s Tab is cheaper but requires a contract

* Sprint to sell the Tab for $399.99 vs $600 at Verizon

* Sprint users must stay 2 years, Verizon has no contract

NEW YORK, Oct 25 (BestGrowthStock) – Sprint Nextel (S.N: ) plans to
sell iPad rival, the Galaxy Tab from Samsung Electronics
(005930.KS: ) for a third less than the tablet computer’s price
tag at Verizon Wireless but, the offer still comes with a catch
that at least one analyst said would limit sales.

On Nov. 14 Sprint, the No. 4 U.S. mobile service will kick
of sales for $400 for the Tab, which is seen as the most
credible competitor so far to Apple Inc (Read more about Apple stock future.)’s (AAPL.O: ) popular
iPad, which has on sale for $630 since earlier this year.

But while Sprint customers will pay less up-front, they may
end up forking out more cash over time as the discount comes
with a two-year contract requiring monthly service fees
starting at $29.99 for two gigabytes of data downloads.

Verizon will charge $20 per gigabyte of data but will not
require customers to sign a contract. Sprint customers can also
sign up for a $59.99 per month plan allowing for 5 gigabytes of
data downloads.

So, including the service fees, Sprint customers would end
up paying $1,120 over two years at the least, and Verizon
customers who use 1 gigabyte of data every month would pay
$1,080 over two years.

Since most of the U.S. population already own cellphones,
operators are eyeing future growth from connections to new
devices like tablet computers or laptops.

CCS Insight analyst John Jackson said consumers may prefer
the flexibility of forgoing a contract but questioned whether
either operator will see much success against iPad as their
pricing is not cheap enough in comparison.

“Neither of these are an obvious recipe for success,” said
Jackson. He said that consumers may go for the Verizon product
while Sprint’s best hope would be to sign up business people
who travel a lot.

Other analysts have cited a price tag of $400 or lower as
appropriate for Tab if it is to compete well against iPad.

Verizon Wireless, a venture of Verizon Communications
(VZ.N: ) and Vodafone Group Plc (VOD.L: ), had said it will start
selling the Samsung device Nov. 11.
(Reporting by Sinead Carew; editing by Gunna Dickson)

Sprint’s Tab is cheaper but requires a contract