Laptop-toting road warriors who don't want to commit to a long-term mobile broadband data plan might be interested in a new offering from Verizon Wireless. On Thursday, the wireless carrier rolled out three new mobile data plans as part of the company's prepaid portfolio.
The plans let customers tap into the mobile broadband speed they need on Verizon's 3G network with daily, weekly or monthly pay-as-you-go access. The plans will be available beginning Nov. 15.
"As more and more people begin to use these devices in different ways, all of a sudden it's not just the device. The network and the ability to connect to the network becomes very important," said Michael Gartenberg, a vice president at Interpret. "Verizon has a very strong reputation for their coverage and connectivity. Prepaid mobile broadband is going to be more important going forward, particularly for people who don't need it on a daily basis and don't necessarily want to pay a monthly fee."
Choosing a Prepaid Plan
Verizon is billing the new options as ideal for customers who need Internet access for occasional or seasonal use on vacation, while enjoying a weekend getaway, or for students away at school. Customers who want to tap this option, however, have to purchase a Verizon USB760 modem for $129.99.
The USB760 comes with a high-performance internal antenna, removable memory of up to 8GB, and support for Windows 2000, XP and Vista; Mac OS X; and Linux. Daily users will pay $15 for 75MB of data. Weekly users will pay $30 for 250MB, and monthly users will pay $50 for 500MB.
To help customers decide which package meets their needs, Verizon offers a chart that indicates how much data usage various Internet functions demand. Users could send about 25,000 text-only e-mails, view 500 web pages, and 150 low-resolution digital photos on the $15 plan. The weekly plan allows about 85,000 e-mails, 1,700 web-page views, and 500 low-resolution photos. The monthly plan offers 170,000 e-mails, 3,400 web pages, and 1,000 low-resolution photos.
Too Costly for Consumers?
Despite the potential cost savings for less-frequent mobile broadband users, the service may not prove as popular as prepaid mobile phone plans because the costs are high and the data limits are relatively low compared to contracts. Customers can purchase a traditional mobile broadband plan from Verizon for $30 a month with 5GB of data if they are willing to sign a contract.
What's more, Verizon's prices aren't as competitive as other carriers. Virgin Mobile's Broadband2Go prepaid service relies on the same modem on Sprint's 3G network. Virgin Mobile charges $10 for 100MB of data transfers over a 10-day period, $20 for 250MB over a 30-day period, $40 for 600MB, and $60 for 1GB.
"If you compare Verizon's package to what you pay for a day's use of Wi-Fi, for example, all of a sudden you are not talking about that expensive of an experience. I think it's a question of perspective and also of need and use," Gartenberg said. "I think it is fairly reasonably priced as an alternative, and increasingly we'll probably see the prices come down over time."
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