Are Service Provider Netbook Bundles a Good Deal?

By Mark Sullivan and Patrick Miller, PC World |  Mobile & Wireless, AT&T, netbook Add a new comment

You can get a deeply discounted netbook from either AT&T or Verizon, as long as you're willing to sign up for a two-year data plan; but no matter which service provider's netbook deal you choose, the price will be about the same. We saw similar price parity when we conducted our cost-of-ownership study of popular smartphones.

We discovered the similarity in bottom-line prices after examining the two-year costs of ownership of various (subsidized) netbooks sold by Verizon and AT&T (Sprint and T-Mobile don't yet offer such deals). The wireless broadband carriers began selling netbooks only this year, and they have adopted a pricing model similar to the one they use for selling cell phones and smartphones.

What's on Sale?

Verizon offers either of two netbooks--the Gateway LT2016u or the HP Mini 1151NR (currently out of stock)--for $150. If you were to buy them elsewhere and without the data plan, the Gateway would cost around $300 and the HP would run about $400.

AT&T sells the Acer Aspire One, the Dell Mini 10, and the Lenovo IdeaPad S10 for $200 each. If you buy any of these netbooks elsewhere (sans data plan) you will pay about $300 for the Acer, $349 for the Dell, or $330 for the Lenovo.

Click on the thumbnail image to the left to view our chart containing a detailed comparison of the total cost of ownership for the five netbooks now being sold by U.S. wireless broadband service providers.

Not Unlimited Data

Unlike smartphone data plans, which typically promise to provide unlimited data for $30 per month, data-only 3G service for netbooks gives you much less for a lot more. Both AT&T and Verizon offer two tiers of data-only service: for $40 per month, you get 250MB (from Verizon) or 200MB (from AT&T) of data per month; for $60 per month, you get 5GB of data per month.

Exceed your monthly bandwidth cap, and you'll pay extra: Verizon charges 10 cents per additional 1MB on the lower tier and 5 cents per additional 1MB on the higher tier; AT&T charges $10 per additional 100MB on the lower tier and a whopping 50 cents per additional 1MB on the higher tier.

The Cost of Speed

You pay for speed, too. Verizon's EvDO Mobile Broadband network advertises download speeds of 0.6 to 1.4 megabits per second (mbps), and upload speeds of 0.5 to 0.8 mbps. AT&T's DataConnect plans advertise slightly higher speeds: downloads at 0.7 to 1.7 mbps, and uploads at 0.5 to 1.2 mbps. Of course, customers' actual results vary--check out our own 3G tests and compare for yourself.

The Specs

All of the netbooks mentioned here have approximately the same specs: a 1.6GHz Intel Atom processor, a 10-inch display, 1GB of memory, a 160GB hard drive, and Windows XP. This generation of netbooks already feels sluggish when put to work on any but the most barebones task; when netbooks equipped with multiple processors or Ion chipsets arrive, we may find the temptation to buy one a lot stronger.

The Bottom Line

    Add a comment

    Post a comment using one of these accounts
    Or join now
    At least 6 characters

    Note: Comment will appear soon after you have activated your account.
    Obscene/spam comments will be removed and accounts suspended.
    The information you submit is subject to our Privacy Policy and Terms of Service.

    ITworld LIVE

    Mobile & WirelessWhite Papers & Webcasts

    White Paper

    Ten Steps to an Enterprise Mobility Strategy

    Enterprise employees are more mobile, relishing the ability to work productively anywhere, at any time. They may use any means to get connected, often creating financial and security risks for your company. Discover how to get control of your enterprise mobility strategy and ensure mobile worker productivity with these ten steps.

    White Paper

    What You Need to Know About the Costs of Mobility

    Mobile workers want to get connected anywhere, at any time, often at any cost. Enterprise mobility is often a hidden "black" budget in your company. Ensure that your traveling employees are productive everywhere, even while you control cost and security, through an enterprise mobility strategy.

    White Paper

    The 2011 iPass Mobile Enterprise Report

    This industry survey covers trends, recommendations and a policy guide on managing Enterprise Mobility for IT management and CIOs. Get data on employee device liability, as well as smartphone/tablet penetration, budget control and provisioning. Find out how your organization compares, how to ensure mobile worker productivity, and control costs.

    Webcast On Demand

    Managing Enterprise Mobility Costs

    Mobile employees, especially those traveling internationally, were spending time and resources finding and making connections. Roaming costs were out of control. The IT Administrator at The Hay Group tells you how he got more control over these costs, providing management with predictable budgets and insights while ensuring employee productivity.

    Sponsor: iPass

    White Paper

    Digital Transformation: Creating New Business Models Where Digital Meets Physical

    Individuals and businesses alike are embracing the digital revolution. Social networks and digital devices are being used to engage government, businesses and civil society, as well as friends and family.

    See more White Papers | Webcasts

    Ask a question

    Ask a Question