site Search:


 
   
story category
Karma Launches $80 Hotspot, Unique Broadband Plan
Users Get Free 100 MB Chunks For Sharing Hotspot
by Karl Bode Friday 07-Dec-2012 tags: business · wireless · bandwidth · wireless
There's no shortage of new wireless MVNOs emerging this year promising to do something a little different on the pricing front. Republic Wireless plans to lower prices by offloading most of the daily traffic to Wi-Fi. FreedomPop promises to offer users a basic free tier of service with low priced data and voice options layered on top. Tucows' Ting plans to focus on customer service, using auto plan downgrades to save users money.

Click for full size
This week a Clearwire MVNO by the name of Karma launched their attempt at price disruption: a $80 hotspot where each gigabyte just costs $14. $14 per gigabyte sounds pricey until you realize that's all you'll pay each month, whereas most incumbent carriers charge a flat fee and then tack usage on top of that.

There's one interesting twist to this equation, and that's the fact you can gain free data in 100 MB chunks by sharing your connection:

The twist is that Karma makes your hotspot into an open Wi-Fi network. When a new user joins, they are taken to a personalized page about the owner of the hotspot. Strangers can then sign in with their Facebook account and get 100MB of free browsing. For every user who does that, the owner of Karma gets 100MB of free data credited to his account. The company calls this "social telecom."

The problem is that MVNOs don't exactly have a strong track record of success in fighting entrenched duopoly carriers with significantly better wireless footprints. Still, it's refreshing to see somebody trying to do things with pricing the incumbents refuse to do (like actually offering cost savings). More information on the $80 hotspot, which comes with 1 GB of free data, can be found over at the Karma website if you're interested.

view: topics flat text 
Post a:
silbaco

join:2009-08-03
USA

Good idea, except....

It runs on ClearWire. If it ran on Verizon's or even At&t's 4G network, I would consider it. ClearWire doesn't even offer service in my state.
NeoandGeo

join:2003-05-10
Harrison, TN

Re: Good idea, except....

They don't offer service anywhere near me. Can't wait until something like this comes to the area, it would be what I chose. I no longer need a phone service. All I need is an IP address that has pricing like this.
iansltx

join:2007-02-19
Golden, CO
kudos:2
...which is why the service runs on Clearwire. Clear WiMAX is less expensive, and more MVNO friendly, than anyone out there, mainly because they're trying to sell an older 4G network with limited metro-area coverage.

RR Conductor
NWP RR Co.,serving NW CA
Premium
join:2002-04-02
Redwood Valley, CA
kudos:1
Clear has a tower in Ukiah, about 10 miles south of me, but you can't get service with it, Clear has similar situations in Santa Rosa, Yuba City and Marysville, sites up and running, but nobody can use them. They are so called "Protection sites", meant only to keep their license active.
--

BiggA

join:2005-11-23
EARTH

Re: Good idea, except....

We have two of those sites too. Let's see how many ways they can spin a poor product into something useful. There's like 100 different CLEAR MVNOs now.

RR Conductor
NWP RR Co.,serving NW CA
Premium
join:2002-04-02
Redwood Valley, CA
kudos:1

Re: Good idea, except....

Yeah, I think Clear either needs to get serious about their network, or just fold and sell out.
--

BiggA

join:2005-11-23
EARTH

Re: Good idea, except....

Their plan is to sell out to Sprint I think.
elefante72

join:2010-12-03
East Amherst, NY
Reviews:
·Time Warner Cable
·Verizon FiOS
·voip.ms

great idea

However wimax is dead for consumers and clearwire isn't expanding until they launch LTE. Dont know if this is LTE capable, but if it isn't throw it in the garbage.

No wimax in my town and there never will be (Buffalo).

Strictly for urban city dwellers and in most cases the core only.
TBusiness

join:2012-10-26
Toledo, OH
Reviews:
·AT&T U-Verse
·MegaPath

Re: great idea

wimax actually is being used my thousands of smaller ISPs. just because the large companies are not using does NOT make it dead to consumers.

If Sprint was smart and deployed this like they planned to start off with it would be national. Instead they sold it off and waited to rebuild something. Now they're farther behind everyone else and still basically have nothing to show for it. Even Chicago had coverage under Sprint's Wimax when it launched, they don't even have LTE there now.
iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: great idea

Actually, CHI does have LTE. They haven't announced it yet, but the service is available in most areas now.

AVD
Respice, Adspice, Prospice
Premium
join:2003-02-06
Onion, NJ
kudos:1

Fatal flaw

Market saturation:

Onee anyone who cares buys the unit there will be no one to buy the bandwidth ad-hock for $14/GB.

They should have sold the units for $500 with 30GB.

What happens if you buy this and no one buys bandwidth from you? You end up with a prepaid plan of $14/GB... sucks.

--
* seek help if having trouble coping
--Standard disclaimers apply.--


p.s. it uses Facebook, that's a whole 'nuther article.
rradina

join:2000-08-08
Chesterfield, MO

Good Deal

Although WiMax coverage is spotty, I just checked AT&T's site and they want you to pay $49 for a hotspot (regular price something like $200 but you get $150 discount for a 2-year plan), then they hit you with $40/month for the data plan and $20/month for adding the hotspot as a device. That price gives you 1GB/month. Extra data is $15/GB.

$60 - $14 = $46 cheaper for 1GB/month. As the data usage grows, so do the savings:


GB Karma$ AT&T$
1 14 75
2 28 90
3 42 105
4 56 120
5 70 135
6 84 150
7 98 165
8 112 180
9 126 195
10 140 210

anon anon

@charter.com

Re: Good Deal

NOT a good deal. You can get better deals with WildBlue, Hughesnet, Verizon HomeFusion, hell just regular Verizon cellular.
rradina

join:2000-08-08
Chesterfield, MO

Re: Good Deal

Satellite providers make mobile hot spots? I guess with a self-pointing mechanism, anything is possible but I wouldn't think a two foot dish is portable. Perhaps this is a great option for an RV.

Regardless, I don't understand your comment.
NYGiants

join:2012-08-31
Bowling Green, VA

Bad Karma

the only place this is avail is in cable and fiber filled cities, pretty worthless to use as second connection due to the cost

Thane_Bitter

join:2005-01-20
London

Memories of FON

Seems remarkably similar to Spanish upstart (and still going nowhere) FON. Free WiFi access to any one of their hotspots if you buy one, the only problem is you don't have a hope in hell of finding a hotspot.

joako
Premium
join:2000-09-07
/dev/null
kudos:5

Re: Memories of FON

At least I got a free dd-wrt capable router from FON.
--
PRescott7-2097
civicturbo

join:2009-11-08
USA
FON put up a map over a year ago, I find many people on it in my city, I got one of the 2.0 n routers too

Rob
In Deo speramus.
Premium
join:2001-08-25
Kendall, FL
kudos:3

1 edit

Sounds great -- except..

Except you have to use Facebook to buy and use it. Sorry, I don't use FB. I was ready to order the device until they tried to force me to use a social networking site to use their services.

Moving on.
--
CheckSite.us | YourIP.us | Reverseip.us

jpmist

@pavlovmedia.com

Good for me

I have a Netzero free account and at 9 months am tired of nursing my 200mb thru the month. After 12 months the free data expires and the data plan they offer is much more than $14/gig plus unused data expires monthly.

The Karma router is about 25% smaller and is more pocketable. It will come in handy to feed my iPhone and Nexus 7 cheaper than what the telcos want to gouge me for.

The biggest advantage is that's it's a pay as you go, no contract plan where you buy data in relatively cheap chunks that don't expire monthly as the other's do.

IowaCowboy
Want to go back to Iowa
Premium
join:2010-10-16
Springfield, MA
Reviews:
·Comcast
·Verizon Broadban..

I'll stick with my VZW ShareEverything plan

I don't use my mobile hotspot that much but enough to justify the $20 fee on my Verizon ShareEverything plan.

I have six devices total (iPad mini, iPad 3, iPhone 5, VZW Jetpack, and 2 dumb phones), four of them (everything other than the two dumb phones) consume data. I have the 4GB plan.

Saturday, 18-May 18:28:10 Terms of Use & Privacy | feedback | contact | Hosting by nac.net - DSL,Hosting & Co-lo
over 13.5 years online © 1999-2013 dslreports.com.