Social Bandwidth: Karma Launches its Mobile Virtual Network

  • Karma, which originally launched in Amsterdam before relocating to New York City, is hoping consumers will engage in a unique social experiment involving a mobile virtual network operator (MVNO).
  • “This new data-only MVNO wants you to open your mobile broadband connection to all comers, turning your private 4G wireless modem into a public hotspot anyone can log onto,” reports GigaOM. “It sounds crazy, but there are rewards for your altruism: The more data you share, the more you receive.”
  • Karma began accepting orders last week for its $79 WiMAX hotspot, which taps into Clearwire’s 4G network in 70 cities.
  • “For that price you get free shipping and 1 GB of data that doesn’t expire. You can buy more bandwidth for $14 a gig, but if all goes according to Karma’s plans, it might be a while before you have to,” notes the article.
  • Users are initially offered 100 MB of free data when they connect to an owner’s hotspot. Karma customers could potentially accumulate nearly unlimited free data by leaving the hotspot activated in public areas.
  • Guests can use the 100 MB in one sitting or over multiple sessions. “Karma tracks data use by tying you back to a Facebook account,” notes the article. “Once that 100 MB is used up, though, it’s gone. You can either sign up as a Karma customer or bid the service farewell.”
  • FreedomPop, Fon and Open Garden are among others experimenting with social bandwidth and collective networking.
  • “But Karma sees social bandwidth as more than just a marketing tool. Rather, it’s a more efficient way to deliver mobile data,” explains GigaOM. “What’s really revolutionary about Karma is how it’s decoupling the service from the device. It’s possible to be a paying Karma customer without ever owning a hotspot — you just latch onto whatever Karma Wi-Fi signal happens to available at any location.”

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