Tuesday, June 29, 2010

Virgin Offers MiFi without Contract

Virgin Mobile will sell you a MiFi for $150 to use with pay-as-you-need mobile broadband: Virgin is pairing the MiFi with its existing Broadband2Go plan in which you pay for time-limited pools of broadband as you need them. The plans range from $10 for 100 MB used within 10 days to $60 for 5 GB used within 30 days.

Because there's no plan commitment for the MiFi or recurring fees for broadband usage, and because the rate charged by Virgin is as low as its competitors (and lower when you consider overage fees of $50 per GB from Verizon Wireless and Sprint), Virgin has an insanely competitive offering.

The MiFi from Virgin suddenly also becomes an effective competitor to AT&T's iPad plans. AT&T is charging $25 for each 2 GB unit of broadband over a 30-day period. Virgin charges $20 for 300 MB or $40 for 1 GB, which is far higher, of course. But if you want to pay out for 5 GB and allow multiple devices access, $60 for 5 GB is cheaper than the $75 you'd pay for 6 GB (three 2 GB units) from AT&T.

It's a very interesting set of tradeoffs.



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