Clearwire Network and Free Data Services May Have Impact

By Karla Robinson
March 28, 2012

If Skype and free-texting apps that use Wi-Fi weren’t enough of a threat to the data revenue of major wireless carriers, new start-ups are infringing further, offering free data solutions on Clearwire’s network.
“FreedomPop, a company funded by Skype founder Niklas Zennstrom, will sell an iPhone case that gives consumers free access to 1 gigabyte of data from Clearwire Corp.’s 4G wireless network,” Bloomberg writes. “Another Clearwire partner, United Online Inc. (UNTD)’s NetZero, is offering 200 megabytes a month for free for as long as 12 months — so long as users buy a wireless modem, which can take the form of a small USB stick that plugs into the device.”
Last quarter, Verizon and AT&T took in a combined $12.2 billion from data but the free approach could change this. Starting off with free offers, the competing services can entice budget-conscious consumers who are frustrated by rate increases from AT&T and others.
“What Skype did for voice, Clearwire and partners want to do for data,” Bloomberg reports. “The idea is to undercut the prices for the service plans that let smartphones and tablets surf the Web and download applications.”
“There’s a growing awareness among American consumers that there are cheaper alternatives to the top four [wireless carriers],” says Emily Smith, an analyst at Pyramid Research.

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