Mobile Data’s Killer App

Finally something has happened that will drive true widespread adoption of mobile broadband. Virgin mobile has rolled out two wireless data options that work with either a USB stick or a mobile hotspot(disclosure: I am employed by Novatel Wireless, the company that makes the devices that Virgin is selling. But really, I’m not a shill). You can get unlimited 3G data for $40 per month, or 100 MB of 3G data for $10 and it will last for 10 days. Clearwire is also rumored to be planning to announce a prepaid 4G offering soon as well.

Prepaid data will be a strong driver of wireless broadband adoption. All those millions of netbooks that were sold over the last two years are able to get free wifi in most of the places that average users take them on a normal day. Every once in a while they go on a trip and would like to have mobile broadband so as not to have to pay the hotel for internet access or worry about whether the airport they get stranded on will have free wifi.

Most people do not take such trips regularly enough to justify a two year contract and monthly bill. However, being able to buy the data only when you are going to use it makes it a much more attractive proposition. As long as the network holds up well enough to provide usable speed this could be the final push that turns non business travelers onto wireless broadband.

I can’t quite put my finger on what the most significant knock on effects will be. It feels like a turning point that will figure prominently in the big battle for how we use the Internet that Google, Apple and Microsoft are fighting right now. For sure one big winner will be Hulu. We’ll see who else can capitalize on this.