Karma Is Pay-As-You-Go Data Service That Rewards Sharing

Frequent travelers who like to stay connected while on the road will want to take note of this story. A company called Karma has launched a new pay-as-you-go data service that provides access to a high-speed 4G data network for laptops, tablets, smartphones and other devices. This isn’t exactly a new concept of course, but what separates Karma from the rest of the crowd is their social-sharing options that allow you, and those who connect to your Wi-Fi hotspot, to earn free data.

The concept is a simple one. New users visit the Karma website and purchase their own personal hotspot for just $79. The hotspot comes with 1GB of data to start you off, which is a solid amount provided you don’t stream movies from Netflix or listen to Pandora constantly. Each additional gigabyte of data will set you back $14, which is fairly competitive with the likes of Verizon and AT&T. But the data plans from those companies aren’t pay-as-you-go, which means if you don’t use up your data at the end of the month, it goes away and you automatically get charged for more. With Karma, you keep your data until it runs out, then you simply buy more as needed.

But Karma users also get the opportunity to earn free data just by being nice to those around them. The hotspot allows you to connect up to eight devices, so when you invite friends, family or strangers at the airport to connect to the service through your hotspot, you’ll both earn 100MB of free data. The more you share, the more data you get. That is your reward for having good data Karma with those around you.
The hotspot has a built-in battery that is good for 6-8 hours and can be charged via USB to keep you going as long as you need. It also weighs just 2.1 ounces, which means you’ll barely know you have it with you when traveling.

The Karma service provides coverage in more than 80 cities across the U.S. using Clearwire’s 4G WiMax network. It can provide connections at up to 6 Megabits per second, which is generally plenty fast for checking email, surfing the web, or even uploading photos to Facebook. It isn’t as fast as Verizon or AT&T’s LTE service, which is often twice that speed or more, but again, it is tough to beat Karma on costs, particularly if you don’t use a lot of mobile data. The service is also offered without a contract, giving you the option to discontinue using it at any time.

Karma’s approach to mobile data is quite an intriguing concept. I’ve used Clearwire’s network in the past and it provides surprisingly strong coverage in a lot of places. It is also consistently fast, although it doesn’t come close to the (more expensive) LTE service that I use now. But considering how affordable it is and the fact that there are no monthly fees, it is tough to beat for the traveler who only needs to connect from time to time. Add in the ability to share with others, something that happens frequently anyway, to earn free data, and you have a service that could be very popular.

[Photo credit: Karma Mobility, Inc.]

Rant: mobile broadband speeds, data limits and prices

It isn’t often that we post rants here on Gadling (unless it involves airport security), but recent developments in mobile broadband have annoyed me enough that the time has come to post an angry rant.

Mobile broadband is in many ways a travelers best friend – it replaced dial-up on the road, it powers the data hungry appetite of our smartphones, and it makes it possible for bloggers to post rants no matter where they are.

Mobile data has been around since the mid 90’s – when it launched as a wireless way to get dial-up like speeds.

You had to bring your own ISP, and had to invest in a pricey mobile modem card. In 1997, I handed over $1400 to get my hands on a Nokia phone and PCMCIA modem card.

It quickly became my best friend on the road (and a sure way to burn through my minutes). Then, in the early parts the new millennium, mobile operators began to act as the ISP, selling data packages as add-ons to your mobile subscription.At first, these were used to access mini web sites using WAP or I-MODE. Then, when technology evolved, it allowed mobile phones to connect to laptops using Infra-Red, Serial and then Bluetooth. Speeds increased from 9.6kbit/s to a more reasonable 54kbit/s. Then EDGE and 1x (on CDMA networks) came along, and we sped things up to 144kbit/s. After that, 3G became the new buzzword, and speeds have been increasing ever since.

The latest buzzword is of course 4G, and if you believe the commercials, every one of the mobile operators offers the absolute fastest 4G network in the country. Some have hired attractive women to promote their speeds, others simply point out how they are better than anyone else and how you can “rule the air” with their lightning fast service.

Thing is, even though speeds have increased by almost 4500x, the amount of data your mobile operator lets you use each month has not.

The fraud that is “unlimited mobile broadband data”

Almost every operator in the country offers unlimited mobile broadband data. And at the same time, none of them actually do. When you start going through the fine print of your contract, you’ll come across the “acceptable usage policy” or AUP. The AUP says you can use all the data you want, as long as you keep it under a specific limit. On an unlimited plan, the limit is usually 5GB. Go over this, and you’ll either be cut off, charged more see your data speeds getting throttled.

The throttle of uselessness.

Throttling is the motoring equivalent of driving your supercharged Italian sports car without any wheels. Sure, you still have an impressive engine, and it’ll make plenty of noise, but you won’t really go anywhere.

On T-Mobile for example – once you hit their “unlimited” limit of 5GB, your speeds drop down to “EDGE speeds” – the same speeds you got back in 2002, or about 144kbit/s. At these speeds, anything other than basic web content or email is unusable. Forget streaming music or video – and forget loading a large web site in under a minute.

Speeds have increased, but guess what has not…

As I mentioned earlier – compared to 1998 speeds, the latest technology (HSDPA+ at 42mbit/s on T-Mobile) is 4500x faster. But guess what – even though the Internet has evolved, mobile broadband has been stuck on the 5GB/month limit for over 7 years.

Seven years ago, we didn’t have streaming Netflix, Facebook, Twitter, Pandora, Slacker or even YouTube. In other words – the entire world has changed, but the mobile operators haven’t realized this.

The limit with no options

This part is the most annoying – once you hit that miserable 5GB limit and get hit with the throttle hammer, you have no options. No matter how much money you offer your operator, you are stuck on the slow train until your new billing month begins.

Sprint and Verizon Wireless are examples of mobile operators that understand how the Internet works – once you go over on their plans, you can pay to stay at full speed. You can do this by switching to a higher plan (up to 10GB) or by paying overages. AT&T Wireless limits you to 5GB, then charges $0.05/MB. Good luck working out the math on that one.

T-Mobile shows how to annoy customers – hit their 5GB limit, and you get a text message with the bad news. Worst of all – their original data transfer limit on Android phones used to be 10GB, but they silently reduced that in 2009.

The mobile operator giveth and the mobile operator taketh away…

This one annoys me more than anything – the operator that lures customers with their promises of limitless data without throttling, only then to change the rules once enough people have signed up.

Virgin Mobile is the clear winner here – when we reviewed their MiFi mobile hotspot, they were the only 3G operator in the country with absolutely no limits on their data. Their terms and conditions didn’t even mention a fair use policy. Then, out of the blue, they decided that 5GB was plenty for everyone, and implemented the dreaded throttling. To top it all off, they even changed those rules on existing customers and keep the service at the same price. Less for the same – that is how mobile operators make their money.

The best way to hide bad changes to your plans? Confuse the heck out of people with your legalese…

T-Mobile in the U.K. shows how to really screw with your customers – they recently told customers that their current 5GB package would drop to 500MB. The message was simple: deal with it, and download your larger stuff at home. After an intense social media outcry, the operator backed down, and changed the new rules so they’d only apply to new customers. Still – the message was clear: you and your downloads suck.

Bottom line – everyone that invested in the product at the time, got screwed by their mobile operator. With the possible exception of banks, no business can pull stunts like that.

Time to burn through your alloted data package will surprise you…

When downloading at top speeds back in 2002, it would take you 64 hours of non stop downloading to burn through your EDGE powered mobile broadband allotment of 5GB. Do the same thing on the newest HSDPA+ networks in 2011 and it’ll be gone in 43 minutes. Speed really does come at a price.

On my cable internet service, I get 250GB/month, and pay $45 for that luxury. On one of my stand-alone mobile broadband subscriptions, I pay $59.99, and get 1/50th of that amount. And while I agree that the technology behind mobile broadband and cable Internet is inherently different, once the networks are in place, there is no good reason to offer one fiftieth of data without a good reason. If this doesn’t show how backwards the operators are, nothing will.

What operators need to do is take a close look at the phones they sell…

In 2002, the average smartphone was a pretty dumb terminal compared to current devices. There was almost no streaming video, no Google Maps, no Qik, no Skype. In fact, the only app that could really downoad a lot of data was the browser – and back then, browsers sucked so much, that you’d have a hard time downloading anything.

As phones improved, we added maps with navigation, video calls and customizable streaming radio stations.

We all know what our phones are capable of – and even though the operators are the ones touting their newest speeds and features – they have apparently failed to realize that people might actually use the speed.

What we really need is for operators to wake up and start offering the speeds that match the Internet. If 5GB was enough in 2007, we really should be offered 10GB or 15GB in 2011.

Rover by Clear offers unlimited 4G broadband for just $5/day

Well, now we know for sure that the U.S. prepaid mobile broadband market is finally taking off. A mere 4 days after our Virgin Mobile Broadband2Go review, a new product from 4G company Clear is offering another prepaid / no contract broadband solution.

Their product is called Rover, and offers 4G service on a USB stick ($99.99) or a WiFi router ($149.99). Best of all – service is offered on these devices starting at just $5. The three price points are simple – $5 for a day, $20 for a week and $50 for a month.

Coverage is still relatively limited, but in the places where I’ve been able to experience the Clear 4G network, it has been very, very fast. In Vegas last month, I was regularly downloading around 6mbit/s, which is about four times faster than any of the 3G operators.

So, if you know in advance that you’ll be in a Clear 4G coverage area, you now have another affordable way to get online. Hopefully we’ll have a full review of Rover up on Gadling as soon as we can. The Rover product page is here, which is where you’ll be able to order the Rover Stick or Puck.

This year in tech – what 2009 will bring for travelers

I’ve already looked back at the best gadgets 2008 had to offer, and in this list I’ll take a look at some of the travel technologies I expect to take off in 2009. Come back next year to either laugh in my face, or remark how amazingly clever I am.

Computer/data bundles on sale

Back in November of last year, Radio Shack started selling a bundle including an Acer Netbook computer, an integrated 3G modem and a 2 year AT&T data subscription. This combo would normally retail for about $430, but the inclusion of the 2 year subscription lowers the price to just $99.

This practice is not new, and bundles of hardware and mobile subscriptions have long been the norm in many European countries. What is new, is that these deals have finally made their way to the USA.

I predict more of these promotions in 2009, and for the deals to become much more widespread. Offering one laptop at just one store is hardly going to change the way we subscribe to mobile data services, but it is a great start.

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4G wireless broadband data

Many people are just making their first steps with 3G mobile data, but some of the major players in the market are already hard at work on 4G.

4G wireless data promises even faster speeds than what we currently get from the 3G services on Verizon, Sprint and AT&T.

Building these new networks takes an astounding amount of money, but the largest and most ambitious network already has the support (and money) from companies like Intel, Google, Comcast and Sprint.

By the end of 2009, we should see 4G networks available in about 20 major US cities. The speeds offered by a 4G service like Clear (previously called Xohm) run off a technology called Wi-Max and should reach about 4-8Mbit/s, which is the equivalent of most residential DSL or cable connections. Unlimited service will run between $30 and $50 a month, making it a very viable alternative to slower 3G services.

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A new iPhone (nano)?

In December of each year, things in the Apple rumor department start to get kind of wacky. That is mainly because January is when the years largest Apple exposition starts (Macworld). The notoriously tight lipped company apparently “leaks” all kinds of amazing stuff, 95% of which is all bogus, fake or downright stupid. One rumor that keeps popping up this year though, is a smaller iPhone.

This “iPhone Nano” has been leaked by several phone case manufacturers, and has all the die-hard Apple fans foaming at the mouth.

Whether we actually see a tiny iPhone remains to be seen, but it sure does sound like a fun little phone.

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More Netbook computers

Netbook computers were the big hit in 2008, and 2009 promises to be even bigger for the little machines. We’ll probably see even lighter machines with more power, and lower prices.

As more and more manufacturers hop on the Netbook bandwagon, companies will start putting a lot more effort into innovation, and sooner or later we’ll finally get the perfect computer.

The first fairly basic Netbook computers launched for about $350, but prices have slowly been dropping, and at the moment that same price will get you a very well equipped machine with a 160GB drive and a powerful 6 cell battery.

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Better battery technology

Current notebook computers have about 4000 times the processing power of the first portable computer, but just 2 times the battery life. Each year promises to be the biggest year ever in battery developments, but 2009 actually seems like it might come through for us.

Big players like HP have signed up for a new battery design by Boston Power, which promises battery charge times as low as 30 minutes for an 80% charge as well as higher capacities with the same weight as current cells.

What this means to you and I is that sooner or later we really might get a computer that can last an entire long haul flight on a single battery charge and can be recharged during a short stopover.

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Paperless boarding documents

I wrote about the future at the airport last week, one of the items in that futuristic lineup is already here, and will probably become more popular in 2009.

Paperless boarding involves having your airline email you a bar code that can then be used to get through security and onto your flight.

Our very own Grant Martin tested it, and says it sort of works, assuming the airport staff know what they are doing.