Karma reduces speeds of its unlimited Internet service

a reduces speeds of its unlimited Internet service

A recently released blog post from Karma CEO Steven Van Wel has disclosed that the speeds of Karma’s unlimited Internet service -- underscoring the company’s Neverstop data plan -- are being reduced.

Karma had launched the Neverstop data plan last year. The plan is Karma's first subscription data plan, which offered unlimited data usage for only $50 per month. The Internet speeds available for the plan’s, both for download and upload, were set at 5Mbps.

The move to cut the speeds of the Neverstop data plan is rooted in the fact that nearly 59 percent Karma users were apparently trying to use the mobile LTE hotspot as their primary Internet connection; thereby getting hundreds of gigabytes of downloads and uploads every month for just $50.

With Karma now having reduced the speeds of its unlimited Internet service, the speeds available to unlimited users has been capped from 5Mbps to between 1.5 mbps and 2.5 Mbps. The reduced speeds will still enable users to check their emails, but will not be enough to allow them to play video games or download huge files from the Internet.

About Karma’s decision to reduce the speeds of its Neverstop data plan, Van Wel said in the blog post: “We made a mistake. We modeled Neverstop usage to be much higher than usage on Refuel. But we never anticipated that some customers would use over 1,000GB a month.”