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« T-Mobile's Throttled Limit Didn't Change from 5 GB | Main | Verizon Wireless Releases 3G Femtocell »

October 14, 2010

Verizon's Clever iPad/MiFi Mash-Up

Apple is letting Verizon Wireless sell the iPad: The trick? Verizon will only offer through its 2,000-plus stores the Wi-Fi iPad, not the 3G model. The 3G iPad works only over GSM networks (up to HSPA 7.2). Instead, Verizon will sell you a plain Wi-Fi iPad ($500, $600, and $700 for 16, 32, and 64 GB); or, for an extra $130, it'll throw in a MiFi router. That $130 is the same price difference Apple and its partners collect for a 3G iPad over its Wi-Fi–only brethren.

Verizon pairs the iPad and MiFi with plans nothing like what the carrier has offered before. These are fixed-price, moderate-use offers with no termination penalty; the terms are just like AT&T's offer for the 3G iPad, but Verizon's prices are better. Verizon will charge $20 for 1 GB ($20 per GB over that) and $35 and $50 for 3 GB and 5 GB (with $10 per GB overage fees).

AT&T charges $15 for 250 MB and $25 for 2 GB for its 3G iPad plans. Additional units of each can be purchased at the same price after the 30-day period expires or you use up all the data. Virgin Mobile offers unlimited Sprint Nextel 3G broadband with a USB modem or MiFi for $40 for a 30-day period.

Because the MiFi can handle up to five devices over Wi-Fi, one could argue that if you don't need an iPad and do need a MiFi, this is a slick deal. Buy the package and sell the iPad without even opening its box. You'll probably get a few dollars under list for it.

2 Comments

I called Verizon and asked about getting just the MiFi, but not the iPad since I already own one. Of course they wanted to charge me full price and have me sign a two year contract, even though it was for my existing wifi iPad. What surprises me is that they could care less that there are already so many existing wifi only iPads out there and they don't seem to want to capture any of that market. Seems to me they need to get someone else in charge of new market growth. I'm an AT&T customer, so you think they would want to show me what a great company they are to get me to switch if and when a new iPhone came out with Verizon. So much for giving a potential customer what they want. Instead they show just how inflexible they are. No brownie points here. And companies wonder why they eventually lose their hold on the market.

I can understand the annoyance Verizon not offering you the mifi creates, but there's no way they can sell the unit and offer you the new plans. For starters the normal mifi is 59.99 per month and it requires a 2-year contract. If they offered existing iPad owners the same deal anyone with a mifi would call in to switch plans. These plans exist because Verizon is making their money off the initial purchase, that 100+ premium over a wifi only covers the mifi unit and some profit. In return Verizon gives you special plans and no contract. It's a good deal, sell your current iPad and jump on the deal, the monthly savings justify the cost.

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