Sprint MVNO Karma said it will restore network speeds of its Neverstop data service and instead will throttle speeds only when a user's consumption exceeds 15 GB in any particular month.
The MVNO two months ago launched Neverstop, a $50-a-month unlimited data service for users of its Go hotspot. But the company quickly found that nearly 60 percent of its customers reported using Karma Go as their home Internet service, and some found ways to bypass a Neverstop system designed to prevent support for home video streaming and console gaming devices.
Karma responded 10 days ago by running tests that capped data speeds at 1.5 Mbps to 2.5 Mbps, a marked decrease from the 5 Mbps supported at launch.
But in a blog post yesterday, Karma conceded the move was "a mistake," and said it will now restore speeds of 5 Mbps up and down, slowing them to roughly 64 Kbps to 128 Kbps once users exceed a 15 GB monthly cap.
The company also said it will begin awarding a $1 credit per GB to customers who don't use their monthly data allotments.
The flap illustrates how service providers are increasingly struggling to keep customers happy even as they try to minimize congestion on their networks due largely to the popularity of mobile video. "Based on current usage, this change will have little to no impact for most of you, while still reducing strain on Neverstop," Karma wrote. "But, if you're looking to binge watch Netflix 24/7, this probably isn't the product for you."
- see this Karma blog post
MVNO Karma throttles data speeds of new Sprint-powered Neverstop unlimited data offering
AT&T resurrects unlimited data offering at $100/month, but only for its DirecTV subscribers
'Social bandwidth' MVNO Karma crosses 50K subs, jumps onto Sprint's LTE network
Karma's 'social bandwidth' model has led to users sharing 1,000 GB of WiMAX data
Kajeet, Karma highlight growing number of Clearwire MVNOs
Karma learns what goes around, comes around
MVNO Karma rolls out Social Bandwidth on Clearwire network