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The age of freemium 4G data is here. Will the big carriers survive it?

2012-03-23 12:51 by
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Earlier this week, NetZero launched a new freemium mobile broadband service using Clearwire's WiMax 4G network. Although NetZero is the first U.S. company to launch a "free" 4G service, it isn't going to be the last. Skype founder Niklas Zennstrom has begun work on a similar service called FreedomPop that will launch this summer.

FreedomPop plans to offer more monthly data for free than NetZero. It will also target iPhone owners as a major part of its user base. The company will offer an iPhone case that can connect to Clearwire's WiMAX network. The case will give iPhone users access to 1 GB of WiMAX data for free, via a Wi-Fi connection between the case and the phone. Each additional GB of WiMAX data will cost $10.

The announcement of these fremium services rises questions about the impact over the data revenues for major carriers like Verizon Wireless and AT&T. In case these services become successful, they will probably affect other low-cost data providers first, rather than the big companies:

"The free 200 MB per month NetZero mobile broadband offering will threaten low-end mobile broadband offerings from providers such as T-Mobile and Virgin Mobile," wrote Current Analysis analyst Weston Henderek. "Both providers currently have $10/100 MB data offerings that provide service for seven to 10 days at a time."

Read more -here-

 

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