Karma (company)

Karma Mobility, Inc. is currently headquartered in Irving, TX and was founded in 2012 through Techstars. The Karma Go hotspot is an open network that allows customers to share their connection with people around them. Each time someone joins, the owner of the Karma Go receives free data. Karma sells hardware and data to customers, which can be purchased through a monthly subscription or by pay as you go. There are no contracts. Karma Go runs off Sprint's 4G LTE Network

Karma Mobility
Type of site
Private
FoundedJanuary 18, 2012 (2012-01-18)
HeadquartersIrving, TX
Created byRobert Gaal, Stefan Borsje, Steven van Wel
ProductsKarma Go
ServicesWireless internet
URLyourkarma.com
Native client(s) oniOS, Android

Services

In December 2012, Karma began providing free and paid wireless Internet services in the United States through wholesale Internet carrier Clearwire. Subscribers connect to Karma's services with a $149 mobile broadband modem.[1][2]

Karma provides 100 MB to new guest users for free while selling data at the rate of $14 per non-expiring gigabyte, and reward users who bring in more users by wirelessly advertising the service.[3] When purchasing a Karma device, the first 100 MB of data is included for free.[3][4] Karma offered an unlimited plan for $50 a month called "Neverstop" however, the company could not support this service and it ended after just 3 months of service.[5][6] Karma now offers a service called "Pulse" which is similar to other hotspot companies.[4] Users can get 5GB for $40, 10GB for $75 and 20GB for $140.[4] Otherwise, users can buy 1GB at a time as needed, for $15 per 1GB.[7]

Controversy

Karma became a center of controversy in January 2016 over changing their Neverstop plan and cutting customers data multiple times.[6][8][9] Some customers accused the company of using bait and switch tactics.[10] New Customers were offered a refund for their devices, based on Karma's standard 45-day return policy. However, customers who purchased Karma "Go" hotspots with Neverstop, outside of that standard return period, were explicitly told "no refunds".[11] Many customers also report not receiving refunds even within the standard return period.[12][13]

Karma offered a program called "Neverstop" where users got unlimited data at up to 5 Mbit/s for $50 a month.[14] After 2 months, Karma blamed customers for "misuse" of the unlimited data service and began throttling users speeds from 5 Mbit/s to 1 Mbit/s.[9][10] After over a week of throttled speeds, Karma changed the "Neverstop" program from unlimited to 15 GB for the same $50 price.[15] Karmas website stated that they would give users 30 days notice if any changes occur. However, users were given no warning for the sudden change from unlimited 5 Mbit/s to throttled 1.5 Mbit/s then to a data cap of 15 GB.[16][17] After just one month, the "Neverstop" service changed again and this time Karma decided to use a new program called "Pulse".[4] Neverstop ended and Pulse became the new service for Karma users.[4]

Network

Karma's first generation ran on Sprint's WiMax network which shut down in November 2015. Their second generation, Karma Go, runs on Sprint's 4G LTE network.[18] Karma encountered some issues adapting to Sprints LTE network. However, after a long waiting period, they were able to fully convert over to the Sprint network.[19] As of 2016, Karma has had to change a lot of their services due to high data usage from customers.[6] Karma buys mass bulk data from Sprint and thus, can't support unlimited plans at this time.[15] Karma has updated its services to stay on the Sprint network. Karma and Sprint still maintain a relationship as of 2016.[20]

References
  1. "Karma Store". Karma Mobility. Retrieved 2015-04-01.
  2. "Internet Frugally Yours or How Do You Spell Karma … – The Cilician Gazette". www.cilicia.us. Retrieved 2016-03-01.
  3. Fitzgerald, Thomas J. (2013-05-15). "Keeping Wi-Fi Always Within Range". The New York Times. Retrieved 2015-04-01.
  4. "Hello Pulse". Karma Blog. Retrieved 2016-03-01.
  5. "Introducing Neverstop". Karma Blog. Retrieved 2016-03-01.
  6. "Karma's unlimited data plan is getting its speed back, but there's a catch". The Verge. Retrieved 2016-03-01.
  7. https://yourkarma.com/pricing
  8. "Karma cuts Neverstop data plan speed in half due to abuse". SlashGear. Retrieved 2016-03-01.
  9. "Karma Explains Throttled Data Speed on Neverstop Plans | Prepaid Phone News". www.prepaidphonenews.com. Retrieved 2016-03-01.
  10. "Bad Karma as WiFi Mobile Hotspot Drops Unlimited Fast Data". www.eweek.com. Retrieved 2016-03-01.
  11. "Bad Karma: Sprint and Data Caps Kill Neverstop Plan; Customers Claim Bait & Switch •". Stop the Cap!. Retrieved 2016-03-01.
  12. "People who have received a refund, what did you do? • r/yourKarma". reddit. Retrieved 2017-03-15.
  13. "Is anyone getting their refunds? • r/yourKarma". reddit. Retrieved 2017-03-15.
  14. "Karma's Neverstop Plan Offers $50 Unlimited Data". PCMAG. Retrieved 2016-03-08.
  15. "Neverstop Changes". Karma Blog. Retrieved 2016-03-01.
  16. "Terms of Service". Karma. Retrieved 2016-03-01.
  17. "MVNO Karma throttles data speeds of new Sprint-powered Neverstop unlimited data offering". FierceWireless. Retrieved 2016-03-01.
  18. "Karma on the Sprint LTE Network". Karma Blog. Retrieved 2016-03-01.
  19. "Where's my Karma LTE?". Karma Blog. Retrieved 2016-03-01.
  20. "What network does Karma use?". Karma. Retrieved 2016-03-01.
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