NetZero to launch free wireless broadband service; no advertising, but there are catches

http://www.washingtonpost.com/business/technology/netzero-to-launch-free-wireless-broadband-service-no-advertising-but-there-are-catches/2012/03/19/gIQAvMFOMS_story.html

There are plenty of catches with the free plan. United Online isn’t offsetting its costs by making users look at advertising, as it did with its original offer of free dial-up Internet access. The “free” users will be money-losers for the company, United Online Chairman and CEO Mark Goldston said. That means United Online is using the free plan as a way to lure customers with the hope of upselling them to paying plans, which start at $9.95 per month.

To take advantage of the offer, consumers will need to buy a $50 antenna stick that plugs into a laptop, or a $100 “mobile hotspot” that allows any Wi-Fi equipped device to connect to the Internet. United Online will be selling the devices on the NetZero website.

The free accounts are limited to 200 megabytes of data per month— enough for some email and Web surfing, but little else. Half an hour of full-screen streamed video will eat up the whole month’s allotment. By comparison, AT&T Inc.’s cheapest wireless data plan costs $14.95 per month for slightly more data — 250 megabytes per month — but that plan is only available for tablets with built-in cellular modems.

When the monthly traffic allotment is exhausted, NetZero cuts off Internet access until the start of the next month, and users are prompted to upgrade to the paid plan.

NetZero will only let users ride free for a year. If they switch to a paid plan, they won’t be able switch back to the free one.