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NetZero Tries Hand At Prepaid Wireless Data

Woodland Hills, Calif. –


, which offers free dial-up Internet
access and low-cost broadband DSL service for the home, is venturing into the
cellular world for the first time with what it called “disruptive” pricing.

 In more than 80 cities, the company launched
free and low-cost prepaid 4G data plans for use with a 4G mobile WiMAX $49.95
USB modem and $99.95 mobile hot spot. The plan and hardware prices undercut the
no-contract, no-credit-check data plans and hardware pricing of the four
national carriers.

 NetZero wholesales the service from mobile
WiMAX carrier Clearwire. The modem and hot spot lack 3G technology, so users
can’t roam outside Clearwire’s 4G footprint.

Through its website, NetZero is
offering a free 200MB/month data plan, which cannot be continued after one
year, a $9.95/month 500GB plan, a $19.95/month 1GB plan, a $34.95/month 2GB
plan and a $49.95/month 4GB plan. The company promises download speeds up to
10Mbps and upload speeds up to 1.5Mbps.

NetZero will sell its service only through its website
for now, a spokesperson said.

In detailing its service, NetZero
said subscribers to its 1GB $19.95/month, 2GB $34.95/month, and $4GB
49.95/month plans will be able to toggle between 1Mbps-download service, called
LightSpeed, and 10Mbps service, called WarpSpeed. Subscribers could toggle to
the slower speed at any time to maximize data usage.

The free 250MB/month plan and
$9.95 500MB/month plan are limited to 1Mbps downloads.

To prevent unexpected charges,
users will get an alert when they reach their monthly data limit, and they’ll
be presented with three options. One is to buy extra data for use until the end
of the billing cycle. The second is to upgrade to a higher capacity plan, and
the third is to wait until the following billing cycle to begin again to use
their data device.

All NetZero data plans, including
the free plan, require the purchase of either the $99.95 NetZero 4G HotSpot or
$49.95 NetZero 4G Stick USB modem. The HotSpot simultaneously supports up to
eight Wi-Fi-enabled devices, including tablets, within a 150-foot range.  The NetZero 4G Stick plugs into the USB port
of a laptop or netbook.

Based on prepaid data-plan and hardware
pricing on carrier websites as of Friday, NetZero pricing beats the prepaid
broadband pricing of AT&T, Verizon, T-Mobile, and Sprint’s Virgin Mobile
prepaid brand for USB sticks and hot spots (excluding cellular-embedded tablets
and netbooks). Here’s a look at a table comparing NetZero service with that of
competing carriers.

Netzero is a subsidiary of United Online, whose subsidiaries include, online nostalgia products and services websites Memory Lane and, and the loyalty marketing website