Bad Karma: WISP Pares Back Its Monthly 4G Hotspot Plan, Again
Robotech_Master writes: The ongoing saga of the Neverstop plan shows that Karma Wireless just can't seem to catch a break as far as high-bandwidth plans are concerned. After starting out with a straight pay-per-bandwidth plan, "Refuel," for its $150 wireless hotspot, Karma thought it would innovate with a throttled-but-otherwise-unlimited 4G plan, "Neverstop." However, it soon discovered that users were taking it at its word and using up considerably more bandwidth than Karma expected or could afford. After experimenting with further throttling, Karma subsequently revamped the plan into a $50 per month, 15 GB plan that throttled to dialup speed after it ran out.
However, now it turns out even that plan was too optimistic, and Karma has opted to dump the Neverstop plan altogether in favor of tiered monthly plan called Pulse —whose bandwidth costs significantly more. ($40/mo for 5 GB, $75 for 10 GB, $140 for 20 GB.) Karma's "unlimited" users weren't pleased the first time the plan changed, and now they're practically through the roof.
If a company can't afford to deliver the product as sold, and they aren't bound to a contract to deliver that product as sold for more than one billing period, then what do these users think is going to happen - Karma Wireless is going to continue to provide a loss making service until the company goes under with massive debts?
Karma Wireless tried something, it failed (mainly because they screwed up forecasting costs) and now they are moving on.
Wireless spectrum is very much a finite resource and bandwidth hogging(literal bandwidth hogging in the case of wireless) users will impact other users. Thus, you pay. For a MVNO like this, they just couldn't afford the bill from Verizon/Sprint/T-Mobile or whoever they piggybacked off of. In short, they got the bitch slap of reality.
Your internet sucks. I can't work out from the blurb if that's typical or supposed to be good value - the "$50 per month, 15 GB" plan. How do you download big games from Steam? Do you have special plans for Netflix or something?
on the 'air' 24/7 nothing to prevent or gain... observation=action,,, unsupervised open honest communications & commerce... truth+mercy=justice.. cease fire stand down,, in the moms we trust...
The obvious lesson here would be that 4G is really not the technology you want to be using for downloading +15GB/month of data. Currently it is simply incapable of supporting that, so demand has to be throttled one way or another. Cost is as good as any.
If you have need for that kind of bandwidth on the go, look elsewhere or expect to pay for it.
As I keep saying to everyone, 3G/4G/5G are not the future for broadband. Wireless bandwidth is a scarce resource with the technology we have now. Being a scarce resource means that it is not going to be cheap to use it. Compare that to a fibre connection to the home, bandwidth there is only limited by the amount of fibre ISPs are willing to light up on the backbones...
Things may change in the future. We may discover some way to be able to transmit more information wirelessly then what any group of people could hope to use at a distance which would make our current wireless networks seem like 2.4ghz wifi. Only then would wireless be a decent substitute for a fibre connection.
how much does that cost now?
'Who?'
The only question that should be asked is why it cost so much.
"If any question why we died, Tell them because our fathers lied."
This is a shining example of why socialism doesn't work. You cannot promise everyone unlimited free (or low-cost) stuff when that stuff is a finite resource. The truth is that there is not enough of ANYTHING to go around when it comes to giving everyone $stuff.
There are not enough seats in college for everyone to go, let alone for free.
There are not enough doctors for everyone to have the best medical care money can buy, even if you take 12% of all national income as a certain candidate is proposing.
The government learned the hard way in the 1970's that socialist price controls and manipulation of demand only led to shortages, lines, and violence. This is why we did not see price controls in the 2000s when gas was $4-5. The politicians knew they would only make matters worse.
Of course, capitalism isn't the answer either as it only succeeds in funneling wealth to the top, but funneling it to the bottom doesn't work either. So, I don't know what the right answer is, or if there *is* a right answer.
Honestly you really need to read closer. IS it really they can't afford it or they can't afford it after thinking they need to increase profits by 25%. You really cant believe anything out of the mouths of the executives because they believe they are entitled to record profits and will word it as they are losing money..... losing imaginary money they want.
Do not look at laser with remaining good eye.
1) promise unlimited something, quickly realize what everyone on earth already knew except for you, that is never going to work. Ever. 2) ??? 3) profit.
I saw this as a solution to my rural broadband access woes (no cable, no DSL, AT&T access horrible, Sprint access fantastic). Maybe I could dump my satellite TV and get into the modern world of Netflix, Hulu, and other services, and decrease my AT&T data plan.
Alas, roughly the time I ordered my Karma the infamous blog post appeared. Just received the gadget yesterday. As I already paid for a month, I'll use my (unlimited) 15 gig before I return it.
Shame...it's a nice implementation.
sine puella vita suget
They are an MVNO no at traditional WISP. Real wisps provide there own network on licensed and unlicensed spectrum and are designed for unlimited use. They don't have to pay another provider per meg.
Reliable, Unlimited, Cheap - Pick two.
Bandwidth costs so get used to it. Anyone who claims "unlimited" either has a specific thing that they mean ( unlimited connect time) or are lying. While buyers do get taken advantage of at times, much is self inflicted. There is the whole paying for what you get aspect as well. TANSTAAFL!
Back when I worked for an ISP my boss had a line he used to describe some of the competitors: "It takes no particular talent to sell a dollar for fifty cents."
Moderating "-1, Disagree" is simple censorship. Have the guts to post your opinion.
Karma Wireless: I am throttling the speed once you get past 15GB of data.
Users: You said the plan was unlimited!
Karma Wireless: I am altering the deal. Pray I don't alter it any further.
Bait and switch scam has been around for centuries. Hope there is a class action suit to follow.
If I'm on a month-to-month contract and decide that you're not paying me enough, I quit at the end of the month. Whether I'm making or losing money has nothing to do with whether I can or not. Similarly, even if they've decided that they're merely not making enough money, they are only obligated to fulfill the terms of their contract and then it's adios.
You can question the motives all that you want, but neither side can force the other to continue to deal. If they don't want to sell to you at the old price, your choice is to pay the new price or walk.
I run a WISP in a heavily competitive area with both CenturyLink and Comcast as competitors. We sell a residential service that averages 25Mbps down and 9 up. 250GB per month for $48/per month. We use the cheapest radios available, Ubiquiti.
I don't understand a WISP who can't make money at a $50/month and 15GB limit plan.
I kinda doubt this is all Karma's fault. I was an original Millenicom subscriber. Sprint shut them down, so I moved to Blue Mountain Internet. Sprint eventually shut them down too, so I moved to Wireless' N WiFi. Sprint is shutting them down right now. (I got the notice last week.) Karma runs on Sprint's network too. I think Sprint is intentionally jacking up rates to encourage users to buy directly from them. Sprint does not like resellers.
The only real problem here is that users had to buy the $150 device to start. Those users bought the device based upon the promise of unlimited data, and now, 2 months later, the device is useless to those users. Those users who only bought the device and signed up for the monthly plan for the unlimited data absolutely have standing to sue. If the company were smart they would offer $150 refunds all around to avoid legal fees.
But you quit because you wanted more money , not making up a bullshit excuse that you were "losing money".