Sprint Nextel to Undercut Verizon Wireless on Galaxy Tab

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Sprint Nextel (S) is aiming to undercut Verizon Wireless by offering Samsung's (SSNHY) Galaxy Tab for one third less than its rival.

There's a catch.

Sprint will offer the Galaxy for $400 starting Nov. 14, Reuters said. To get that price, customers will have to sign up for a two-year contract with monthly service fees starting at $29.99 for two gigabytes of data.

Verizon will charge $20 per gigabyte but will not require a contract.

That means you could end up paying more by going with the Sprint discount.

Samsung will be one of the first companies to launch a tablet aiming to compete with the Apple (AAPL) iPad. The Galaxy is powered by Google's (GOOG) Android operating system.

The company hopes that its experience of using Android on its smartphones will give it the edge in the fast-growing tablet market.

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