Karma (company)

Last updated
Karma Mobility, Inc.
Type of site
 Private
FoundedJanuary 18, 2012;12 years ago (2012-01-18)
Headquarters Irving, TX
Created byRobert Gaal, Stefan Borsje, Steven van Wel
Products Karma Go
Services Wireless internet
URL karmamobility.com
Native client(s) on iOS, Android

Karma Mobility, Inc. is a prepaid mobile provider that operates on Sprint's 4G LTE Network. The company provides hardware and data. The company is headquartered in Irving, Texas. The company was founded in 2012 through Techstars.

Contents

Controversy

Karma became a center of controversy in January 2016, over changing their Neverstop plan and cutting customer's data multiple times. [1] [2] [3] Some customers accused the company of using bait and switch tactics. [4] Newer 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". [5] Many customers also report not receiving refunds even within the standard return period. [6]

Karma offered a program called "Neverstop" where users got unlimited data at up to 5 Mbit/s for US$50 a month. [7] After two months, Karma blamed customers for "misuse" of the unlimited data service and began throttling users speeds from 5 Mbit/s to 1 Mbit/s. [3] [4] After over a week of throttled speeds, Karma decided to change the "Neverstop" program from unlimited to 15 GB for the same US$50 price. [8] Karma's website stated that they would give users 30 days notice if any changes occur. However, their users were given no warning for the sudden change from unlimited 5 Mbit/s to throttled 1.5 Mbit/s and then to a data cap of 15 GB. [9] [10] After just one month, the "Neverstop" service changed again and this time Karma decided to use a new program called "Pulse". [11] Neverstop ended and Pulse became the new service for Karma users. [11]

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. [12] Karma encountered some issues adapting to Sprint's LTE network. However, after a long waiting period, they were able to fully convert over to the Sprint network. [13] As of 2016, Karma has had to change a lot of their services due to high data usage from customers. [1] Karma buys mass bulk data from Sprint and thus, currently cannot support unlimited plans. [8] Karma has updated its services to stay on the Sprint network, and Karma and Sprint still maintain a relationship as of 2016. [14]

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References

  1. 1 2 "Karma's unlimited data plan is getting its speed back, but there's a catch". The Verge. 18 January 2016. Retrieved 2016-03-01.
  2. ↑ "Karma cuts Neverstop data plan speed in half due to abuse". SlashGear. 11 January 2016. Retrieved 2016-03-01.
  3. 1 2 "Karma Explains Throttled Data Speed on Neverstop Plans | Prepaid Phone News". www.prepaidphonenews.com. Retrieved 2016-03-01.
  4. 1 2 "Bad Karma as WiFi Mobile Hotspot Drops Unlimited Fast Data". www.eweek.com. Retrieved 2016-03-01.
  5. ↑ "Bad Karma: Sprint and Data Caps Kill Neverstop Plan; Customers Claim Bait & Switch •". Stop the Cap!. 22 February 2016. Retrieved 2016-03-01.
  6. ↑ "People who have received a refund, what did you do? • r/yourKarma". reddit. December 2016. Retrieved 2017-03-15.
  7. ↑ "Karma's Neverstop Plan Offers US$50 Unlimited Data". PCMAG. Retrieved 2016-03-08.
  8. 1 2 "Neverstop Changes". Karma Blog. Retrieved 2016-03-01.
  9. ↑ "Terms of Service". Karma. Retrieved 2016-03-01.
  10. ↑ "MVNO Karma throttles data speeds of new Sprint-powered Neverstop unlimited data offering". FierceWireless. 11 January 2016. Retrieved 2016-03-01.
  11. 1 2 "Hello Pulse". Karma Blog. Retrieved 2016-03-01.
  12. ↑ "Karma on the Sprint LTE Network". Karma Blog. Retrieved 2016-03-01.
  13. ↑ "Where's my Karma LTE?". Karma Blog. Retrieved 2016-03-01.
  14. ↑ "What network does Karma use?". Karma. Retrieved 2016-03-01.
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