Mobile Carrier To Sell Service for $19/mo; Android Handsets For $99 Until Nov 27
techcrunch.com
techcrunch.com
Bandwidth.com has built up a whole country-wide internet backbone system of their own to carry VOIP traffic (they carry Google Voice, for example), with lots of connectivity to the local area terminal points (I forget the jargon for that).
We're really happy with Phonebooth.com (another Bandwidth initiative), who provide unlimited VOIP service (with a full virtual business PBX) to North America at $20/user/month. (And who apparently don't charge for calls to Europe (at least Ireland), as I found out recently.) It's perfect for our little 4-man distributed company; we each have a VOIP phone on our desks and can pretend we're all in the same office with extensions, etc.
Bandwidth.com seems like a company to watch...
The phone monitors how much data you're sending over Wifi vs cellular, and if you're using a disproportionate amount of cell data compared to the rest of the community, they can boot you.
"The best way to know how you're doing is by checking out your Cellular Usage Index (CUI). If it's too high, we'll let you know and give you tips to bring it down. You have plenty of time. But meanwhile, you still pay a flat fee of $19/month no matter what."
Sounds like a simple prisoner's dilemma, with the "selfish" incentive driving people to lower the total consumption. Of course, the prisoner's dilemma only has the optima it does because of a lack of shared information; people can cooperate when they can strategize in some out-of-band way.
For this service, the "cooperation" strategy would entail everyone conspiring to drive the average up, so that the service provides more to everyone without anyone in particular having a "disproportionate" usage.
I imagine we'll see an incentive program soon..."Refer 5 friends and this month's bill is free." If you refer the 5 friends you talk to most, the company will save much more than $19.
VoIP is cool, but traditional phone calls and text messages are not always ideal. I think innovation on the communication channels themselves would go a long way for this company. Think http://voxer.com
Facebook is in a particularly good position to pull this off correctly. They already have a "cool" factor, and if they could come up with a communication tool that people really like, so much that you're jealous your friend has it but you don't, the people will come. Blackberry pulled this off for years with BBM, but lost its "cool" somewhat recently.
that's a pretty bold statement. Care to elaborate?
Seems pretty expensive when i pay exactly that to AT&T to have 6mbps at my home. we're talking about 1mbps maximum here right?
Put it together with usage data, you quickly get over $19: http://blog.nielsen.com/nielsenwire/online_mobile/u-s-teen-m...
Edit: Just want to point out, I'm not saying this is a bad bet to make. They can attract a ton of consumers with a super low cost, and if those consumers do most of their communication in-network, eventually they'll be in the green.
"Bandwidth.com, Inc., a privately held telecommunications company in Research Triangle Park, North Carolina, announced today that it has signed a commercial deal with the Verizon wireline companies under which the parties agree to terminate each other's VoIP traffic at a rate of $0.0007 per minute."
This is for landlines, but still a much lower number than I was expecting to see.
Other companies turn a profit with 1/10 to 1/100 of their prices.
What's amazing here is they are offering a Voip phone with a $19/mo plan (cheaper than, say Vonage at $25) plus fallback to a large mobile network. That is a pretty good price point.
The "Sprint" Sprint brand has better coverage than the Virgin Mobile Sprint brand, presumably because of roaming agreements with Verizon.
Sprint itself also has a CDMA voice and data roaming agreement with Verizon, which MVNOs and subsidiary brands do not benefit from.
http://en.wikipedia.org/wiki/Virgin_Mobile_USA "wireless voice, messaging and broadband data services to subscribers throughout the United States via the Sprint Nextel CDMA PCS network"
http://en.wikipedia.org/wiki/Boost_Mobile "Boost Nationwide Unlimited (AKA Monthly Unlimited Plan), which differs from their previous UNLTD plans, is offered for iDEN handsets as of January 22, 2009 and CDMA as of January 2010"
The reason you have sucky coverage is the PRL list is much more limited for Virgin phones and they don't allow roaming. Update the list and get better signal.
I agree with GP post though. This deal is good, but not quite as amazing as the article makes it seem. Even if you have to go with the newer pricing ($35 vs $25), Virgin Mobile has plans in this general range and their phones are a known quantity (and pretty well supported by CM7 ports).
If this uses Sprint's network as well, then I suppose it comes down to minutes/MBs. I don't use enough of either so for me the math is simple: $19 < $25.
Thoughts:
1. I really hope it knows to just use cell while driving instead of trying to connect to random passing APs.
2. Am I the only person in America constantly surrounded by secured/non-free Wifi?
3. Why wouldn't I just pay less for my phone and $10 more a month for Virgin Mobile?Oh yeah, and they really really don't like you to do it because you're basically using parts of the network they don't want you to use. So whatever you do, don't tell Sprint customer service.
At $19/month, it's also cheap enough to be a work/travel phone that is assigned to you. Although there is a growing trend for IT-consumerization and multi-SIMs, there are still plenty of people who prefer to keep physically separate personal and work mobile devices. This could easily appeal to them and organizations.
For a smaller (but very lucrative segment) of roaming subscribers, being able to use a single phone number accessible over WiFi no matter what country you're in is a compelling value prop; no more need to worry about data/voice add-on packages.
It's like being able to take your voip line with you on your phone, accessible through one number. Surprisingly, nobody else can offer that right now. The closest we've got is FaceTime (cellular network for voice; free voice calling if you're on wifi and reaching out to another iOS device), and even that doesn't quite provide the same convenience.
And with declining voice revenues, carriers are fighting a losing battle knowing their margins are being squeezed. They are deathly afraid of voip cannabilizing their voice revenues.
This is a good move by Sprint. I wonder if they have any equity in Republic Wireless.
The fact of the matter is, if there was stable free wifi everywhere many of us wouldn't be using cell networks. But it's not going to happen. Europe is even worse; better hope there's a McDonalds near you when you want to make a call.
I'm going to bet that most people are just suckers for the brand-new expensive-yet-crappy smartphone and getting locked into another phone on another untested carrier isn't going to sway many of them. And Wifi on all the time? There goes your battery life.
(p.s. I don't know what kind of phone they're offering first, but that disassembled phone on their front page is identical to my LG Optimus V - from Virgin)
my biggest concerns would be-
Would loading custom roms effect their application/script?
Is it compatible with google voice?
Theoretically, couldn't one could not join WiFi any networks and use Sprint most or all the time?
Then, they would probably check to see who was using the majority of minutes/data on Sprint, and then have a talk with them (or throttle their data).
I'm curious as to what they would do with people who sign up and don't live in cities. If you live in rural areas, it's doubtful you'll have WiFi the majority of places you go. They would probably end up losing money on rural subscribers, then try to make profits from urban subscribers.
There might be a problem with a strategy like that though, because it doesn't seem their profit margins would be too high. I'm not sure how much it costs them to buy data in bulk from Sprint, but doing unlimited data for $19 isn't going to result in amazing profit margins. I'm also assuming that they won't be buying voice minutes, because if these devices can use multiple networks, the only way to keep a single phone number would be using VoIP. Of course, there's no way they would be buying text messages, because text messages can easily be sent over e-mail.
I'm guessing they'll offer it in one or two cities, call it a revolution, fail to generate revenue and fade quietly into tax write-off oblivion.
Does anyone know of any comparable deals like this?
This could be just the thing I have been looking for to check my emails and servers (religiously) at a decent cost compared to hotel and internet cafe prices. Not to mention the added convenience value. Some places charge almost $19/day for short term access so paying $140/year would be a steal.
Basically if you use more than "$19 worth" of cellular service per month... they boot you off of their networks.
Deciding on a cell phone provider should be no different to internet providers - pay $20, $30 a month for a connection (unlimited) and that is that.
I have DSL at home. Will it work on that or will I have to upgrade to
something faster?
You need about 80kbps both ways to hold a call. The more bandwidth the better
for improved call quality. Don’t forget that streaming video or downloading
large files all use bandwidth, so your mileage may vary if you are trying to
make or receive calls and watch Netflix at the same time.
Sounds like it's more likely that your gaming or Netflix would adversely affect the phone than the other way around, though a router with QoS should fix that easily enough.still interested on the plan if they provide an android image I can use with their wifi network.