Monday, October 06, 2008

Baltimore WiMax Pricing

A comparison of various wireless network techn...Image via Wikipedia
Lynnette Luna from FierceBroadbandWireless provides some pricing details for Sprint's WiMax rollout, which has begun in Baltimore, Maryland. A couple interesting things jump out. First, rather than focusing on one market segment - such as mobile broadband - Sprint is aggressively going after DSL/Cable broadband, mobile broadband and WiFi hotspots. Clearwire is targeting deployment in 140 million points of presence by the end of 2010, although some analysts think 2015 is more likely. A killer feature of the offering is the combination of home and mobile broadband services at a relatively inexpensive price - $50 per month. Xohm's pricing plans increase chance of service's success
The smartest thing about Sprint's no-contract service plans is the Pick 2 plan, which enables customers to use the service as both a home Internet access service and a mobile broadband service. Subscribers lock in two devices, such as a modem and laptop card, for $50 per month. This should help alleviate the frustration surrounding poor coverage and a lack of a nationwide footprint on the mobile side as subscribers will still see the value in being able to plug in a self-provisioning modem and surf the Web from home with localized mobile broadband access.


I suspect, however, that the Home plan might be the biggest hit early on. The pricing, at $25 per month initially and $35 thereafter, is competitive with existing DSL and cable offerings. And the main advantage is the fact that the Zyxel modem Sprint offers is a self-provisioning modem, meaning subscribers plug in the modem and activate service via the Web. DSL and cable service can be activated the same way but often require a truck roll. Moreover, the Xohm service can be canceled at any time.


Here's a breakdown of Xohm's no-contract service plans:
  • Home plan: Designed as a wireline broadband alternative that includes a self-provisioning Zyxel modem for $80 that plugs into any WiFi router. The plan is $25 per month for the first six months and $35 thereafter.
  • On-the-Go plan: Designed as a competitor to existing mobile broadband. Devices include laptop cards, USB modems and the Nokia N810 tablet. Promotional pricing is $30 and $45 after six months.
  • Daily-on-the-Go plan: Targets pay-per-use WiFi customers at $10 per day.
  • Pick 2 plan: The most interesting pricing plan that allows customers to use the service as a home Internet access service and a mobile broadband service. Subscribers lock in two devices, such as a modem and laptop card, for $50 per month.
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