• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics

1

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
TechMobile

Upstart mobile operators push mobile data pricing limits

By
Kevin Fitchard
Kevin Fitchard
Down Arrow Button Icon
By
Kevin Fitchard
Kevin Fitchard
Down Arrow Button Icon
July 9, 2015, 1:37 PM ET
General Images Of Vietnam Economy As Anti-China Riots Spoil Vietnam Dollar Bond Rally
A man uses a mobile phone in Hanoi, Vietnam, on Saturday, May 30, 2014. Vietnamese dollar bonds are missing out on a developing-nation rally on concern a territorial dispute with China that has sparked deadly riots will deter foreign investment. Photographer: Brent Lewin/Bloomberg via Getty ImagesPhotograph by Brent Lewin — Bloomberg/Getty Images

If you subscribe to one of the major mobile operator’s smartphone plans, chances are you’re accustomed to paying for data on a use-it-or-lose-it basis. Consumers often buy a bucket of megabytes or gigabytes each month, and what they don’t consume by the end of the billing cycle disappears into the ether, replaced by a brand new chunk of data every month.

However, thanks to a bunch of new upstart operators the oft-criticized approach might soon come to an end. A group of mobile firms are challenging the fundamental notion of mobile data pricing, and in most cases offering a far cheaper monthly bill to boot.

Google’s recently launched Project Fi sells data strictly on the meter: Every 100 MBs you consume costs a buck. Meanwhile, Los-Angeles-startup FreedomPop offers a bare-bones voice and data plan to all of its customers at no charge, upselling customers on other services, and New York-based mobile ISP Karma sells a gigabyte of data that never expires.

This week another upstart operator called Republic Wireless introduced its own spin on the data plan. Like the big carriers, Republic will sell you a monthly bucket of data, but if you don’t use it up the company will refund the unused portion. For instance, users who sign up for a $30 a month 2GB plan, but only use 1.5 GBs get a $7.50 refund. Conversely, if users go over their plan by the same 500 MB they are charged an additional $7.50.

The concept is essentially the same as the pay-for-what-you-consume plans offered by Project Fi, but the difference is that Republic’s rates work out to be a flat $15 a gigabyte, while Google only charges $10.

The most interesting thing about Republic’s new pricing models, however, is that they seem aimed at getting customers to consume less mobile data, not more. Republic isn’t your typical mobile operator since it encourages its customers to abandon the cellular network whenever possible and use readily available Wi-Fi networks around them. The company has developed special software for its Android phones that automatically connect customers to public and private hotspots whenever they’re available. It even offers a Wi-Fi-only plan for $10 a month, which bypasses the cellular network entirely for all phone calls, text messages and data connections.

Republic, which is owned by Internet and telecom service company Bandwidth, originally used its Wi-Fi-first network to drive down cellular data costs, so it could offer cheap unlimited plans to customers. These days it’s now phasing out its $25 unlimited 3G plan, and $40 a month unlimited 4G plan (though current customers can still subscribe to them).

According to Bandwith CEO and founder David Morken, so much of Republic’s traffic is now being shunted onto Wi-Fi networks that most of its customers are consuming less than 1 GB a month in cellular data. By moving to a metered data model, Republic’s customers would pay far less than if they subscribed to an unlimited plan, he said. Republic conducted trials of the new plans with several thousand customers and found that the average monthly bill came out to $14.88 a month.

We’re starting to see more and more of these type of upstart companies emerge that challenge traditional mobile pricing rules, though, so far, none of them have made a huge impact on consumers. One of the most successful operators, FreedomPop, still has less than one million customers. Although, if they became too successful, the mobile powers-that-be could easily shut them down.

Operators like Project Fi and Republic don’t actually own their own 3G and 4G cellular networks. Instead these companies are Mobile Virtual Network Operators (MVNOs) that buy network time from one of the major operators like Sprint (S) or T-Mobile (TMUS). Since they’re paying wholesale rates for voice, SMS and data, these MVNOs have a lot of flexibility to experiment with new pricing models, which is great source of innovation in the mobile industry. It’s important to note, though, that if these virtual operators began siphoning off millions of customers, the big four mobile operators would no longer tolerate them, and block them for their networks.

Subscribe to Data Sheet, Fortune’s daily newsletter on the business of technology.

About the Author
By Kevin Fitchard
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Samuel Corum/Getty Images
Big TechSpaceX
Elon Musk’s proposed pay package in SpaceX’s IPO filing reveals what the company actually is: a $1 trillion monster built to colonize Mars
By Eva RoytburgMay 20, 2026
6 hours ago
elon
SuccessIPOs
SpaceX IPO targets $28.5 trillion total addressable market, mission to ‘make life multiplanetary’ and understand ‘true nature of the universe’
By Nick LichtenbergMay 20, 2026
8 hours ago
Jensen Huang, chief executive officer of Nvidia
AINvidia
Nvidia tells skeptical investors that AI is ready to go mainstream
By Ian King and BloombergMay 20, 2026
8 hours ago
SpaceX finally files IPO prospectus, reveals revenue is up–but losses are too
Big TechSpaceX
SpaceX finally files IPO prospectus, reveals revenue is up–but losses are too
By Allie Garfinkle and Alexei OreskovicMay 20, 2026
8 hours ago
Elon Musk sits with his fists together, looking up.
Commentaryspace
SpaceX will be worth trillions, but the space station that made it possible is worth even more — if we don’t squander it
By Tejpaul BhatiaMay 20, 2026
8 hours ago
Antler CEO Magnus Grimeland says Silicon Valley doesn’t have a monopoly on tech: ‘People can innovate from almost anywhere’
AsiaAsia Agenda
Antler CEO Magnus Grimeland says Silicon Valley doesn’t have a monopoly on tech: ‘People can innovate from almost anywhere’
By Angelica AngMay 20, 2026
9 hours ago

Most Popular

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
1 day ago
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
Success
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
By Preston ForeMay 20, 2026
15 hours ago
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
Future of Work
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
By Mike Householder and The Associated PressMay 17, 2026
4 days ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
8 days ago
Dr. Bernice King on why companies that walked back DEI were never truly committed: 'If you retreat that quick…that reveals who you really are'
Workplace Culture
Dr. Bernice King on why companies that walked back DEI were never truly committed: 'If you retreat that quick…that reveals who you really are'
By Preston ForeMay 19, 2026
1 day ago
Spirit Airlines apologizes to all the Americans who can't afford any summer vacation flights as it shuts down
Travel & Leisure
Spirit Airlines apologizes to all the Americans who can't afford any summer vacation flights as it shuts down
By Rio Yamat and The Associated PressMay 18, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.