Getting a Deal on Mobile Broadband

New competition in mobile broadband high-speed Internet access for laptops and other devices over a cellular network could lead to better deals for consumers, provided they can figure out what they need.

Companies are eagerly crowding the field to take advantage of consumers' desire to stay connected away from home, says Mike Jude, the program manager for market research firm Frost & Sullivan. A recent Federal Communications Commission study found that connected devices such as laptops, netbooks and tablets accounted for three-quarters of mobile broadband use. Cellphones accounted for the remaining 25%.

Mobile broadband can be used wherever there's a cellular network signal, so it appeals to commuters, students, business travelers and anyone else looking for a steady connection. New low-priced and prepaid options have also drawn customers looking to cut the expense of a fixed broadband connection at home, he says. For many people, this [connection] might just be good enough, Jude says.

one of Sprint (S) brands) introduced a new unlimited pricing plan Tuesday for its no-contract, Broadband2Go offerings. Users can now pay $40 per month for unlimited data, or $10 for 100 MB over 10 days of use. (Previously, users could pay $10 for 100MB over 10 days; or, over 30 days, $20 for 300MB, $40 for 1GB or $60 for 5GB.) Plans use the MiFi wireless router ($150), a portable hotspot that converts cellular signals into Wi-Fi coverage for up to five devices.

In early July, Best Buy (BBY) launched its own mobile broadband service, Best Buy Connect, also using Sprint's networks, with plans for $30 to $60 per month. Later that month, it announced plans to offer faster 4G service in early 2011.

Consumers looking for a mobile broadband connection have three broad options: tether their laptop to an existing Internet-enabled cellphone and its data plan, purchase a mobile broadband USB connection stick and a separate data plan, or purchase a portable mobile router and a separate data plan. Picking one is no easy feat.

There's no easy answer, says Michael Gartenberg, a partner at technology consulting firm Altimeter Group in San Mateo, Calif. The plans, devices and services vary so much.

Consider these five factors when sorting through the options:

Number of connected devices

If the plan is to regularly connect multiple devices at the same time, a mobile router such as the MiFi is your best option, says Alex Goldfayn, a consumer electronics expert who hosts the nationally syndicated radio show The Technology Tailor Minute. It lets multiple devices connect to it wirelessly, he says. It acts as a mobile hotspot. A MiFi router is more cost effective than purchasing multiple plans.

Handset

Using your phone as a tether is one of the simplest ways to connect, but it's not an option for every handset, Gartenberg says. For those handsets that can connect, carriers can charge different rates depending on the phone. For example, Verizon (VZ) offers free tethering for the Palm Pre Plus, but charges an extra $15 to $30 per month to use the feature on the Droid Incredible.

Carrier

If you're not tethering, there's no advantage to purchasing mobile broadband from the same company that provides your cellphone service, Goldfayn says. The coverage at this point from the major players is all good, he says, and they're all fairly fast. Compare prices and coverage areas from various carriers as well as third parties such as Best Buy and cable provider Comcast (CCW) .

Surfing Habits

Stick to email and web browsing and any of the three options are fine. However, people planning to stream video or download movies are likely to need an option that comes with an unlimited data plan. If you have a data cap, you're going to hit it really quick, Goldfayn says.

Connection frequency

Opt for a pay-as-you-go plan an option for tethering, connection sticks and mobile hotspots if you don't plan to connect frequently enough to warrant the cost of signing a two-year contract, Jude says. It's a good option for more casual users.

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