So a new mobile virtual network operator operating in Detroit is trying a unique charging system for usage. On any single day, when you want to use an app (LinkedIn, Facebook, Pandora, make a call, send a text message) that uses the mobile network, you pay Lunar 25 cents for use of that app for the day. So if you use four apps in one day, you pay $1.
Using any apps on Wi-Fi is free, so the big question is how often, in a single day, a user wants to use an app on the mobile network. Most of us would not be too sure about how our own typical usage breaks down, on that score.
Some days, when stationary, Wi-Fi might be most of the usage. So the only issue is how many apps might be used when one is out and about.
Lunar argues most of its customers will wind up paying about $10 a month.
The issue, for many potential users, is always the same as it has been with usage-based rating. Nobody can easily tell, in advance, how much usage they will incur, and therefore what the bill will be.
Lighter users might benefit, but even users who are on multiple apps every day might come out ahead. It just depends. If you are using 10 apps a day, you might pay less on some other standard plans from the big four U.S. mobile operators.
And that is a consumer acceptance problem. There is a long history of consumers voting with their wallets for predictability. They like to know, in advance, what their use of a mobile service will cost.
It's an interesting approach, to be sure. Still, few have managed to build big account bases on a usage-based rating system, compared to flat fee models.
Using any apps on Wi-Fi is free, so the big question is how often, in a single day, a user wants to use an app on the mobile network. Most of us would not be too sure about how our own typical usage breaks down, on that score.
Some days, when stationary, Wi-Fi might be most of the usage. So the only issue is how many apps might be used when one is out and about.
Lunar argues most of its customers will wind up paying about $10 a month.
The issue, for many potential users, is always the same as it has been with usage-based rating. Nobody can easily tell, in advance, how much usage they will incur, and therefore what the bill will be.
Lighter users might benefit, but even users who are on multiple apps every day might come out ahead. It just depends. If you are using 10 apps a day, you might pay less on some other standard plans from the big four U.S. mobile operators.
And that is a consumer acceptance problem. There is a long history of consumers voting with their wallets for predictability. They like to know, in advance, what their use of a mobile service will cost.
It's an interesting approach, to be sure. Still, few have managed to build big account bases on a usage-based rating system, compared to flat fee models.
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