Karma (company)
| Company type | Private |
|---|---|
| Industry | Telecommunications |
| Founded | 2012 |
| Founder | Robert Gaal, Stefan Borsje, Steven van Wel |
| Headquarters | Irving , United States |
Area served | United States |
| Products | Prepaid wireless devices and data plans |
Karma Mobility, Inc. is a prepaid wireless service provider utilizing Sprint's 4G LTE Network to deliver both devices and data plans. Founded in 2012 by Robert Gaal, Stefan Borsje, and Steven van Wel through Techstars, the company is based in Irving, Texas.
Controversy
In January 2016, Karma encountered significant backlash due to alterations made to its Neverstop plan, which involved several reductions in data allowances.[1] Customers accused the firm of employing bait-and-switch methods. While new customers were eligible for refunds under Karma's 45-day return policy, those who had purchased Karma "Go" hotspots with Neverstop beyond this timeframe were refused reimbursement.[2] Additionally, some users claimed they did not receive refunds even within the stipulated return period.Cite error: The opening <ref> tag is malformed or has a bad name
The Neverstop plan initially provided unlimited data at speeds up to 5 Mbit/s for a monthly fee of US$50.Cite error: The opening <ref> tag is malformed or has a bad name After two months, Karma cited customer "misuse" and throttled speeds from 5 Mbit/s down to 1 Mbit/s.[3][4] Following more than a week of reduced speeds, the company converted Neverstop from an unlimited plan to one capped at 15 GB for the same price.[5] Although Karma's policy required a 30-day notice before implementing changes, users were not informed prior to experiencing speed throttling and data limits.Cite error: The opening <ref> tag is malformed or has a bad nameCite error: The opening <ref> tag is malformed or has a bad name
One month later, Karma discontinued Neverstop and introduced a new offering named "Pulse."[6]
Network
Karma's initial products operated over Sprint's WiMax network, which ceased operations in November 2015. The subsequent generation, Karma Go, runs on Sprint's 4G LTE infrastructure. Transitioning to LTE presented difficulties for Karma, but the company successfully completed the migration. By 2016, increased data consumption among customers compelled Karma to adjust its service offerings. Since Karma procures data in bulk from Sprint, it was unable to sustain unlimited data plans at that time. Despite these service modifications, Karma maintained its partnership with Sprint as of 2016.
External links
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