Republic Wireless has been around for awhile now in cell phone industry time, trying to make a dent in big carrier policies by offering cheap handsets with even cheaper plans. They’ve yet to see a whole lot of success thus far, but now they’re really upping the ante.
Announced today on their community blog, come November Republic Wireless will be selling the Motorola Moto X for $300 with plans starting as low as $5 a month. So how are they able to charge $300 for a normally $650 Moto X? They’re going to eat the cost. Republic is so convinced there’s a profitable business model in they way they operate, they are willing to pay for more than half of your device’s cost just to get you using their service. And how are they able to charge you only $5 a month for service? By being a WiFi only VoIP moderator.
Republic Wireless’ plans are based on the fact that most people with a smartphone are around WiFi all day. For $5, you get unlimited everything, but it all has to be done through WiFi. If you can’t get a WiFi signal you can’t use your phone. The way I look at it, the $5 plan is like having a smartphone for a home phone. But one you can most likely take to work and still have function just fine. For just $5 more, at $10, you can get unlimited minutes and texts on Sprint’s cell towers, but no data. Data for the $10 plan is available on WiFi only. The next step up is a $25 plan, which includes unlimited everything with 3G data, followed by a $40 plan, which has unlimited everything with 4G data.
Republic Wireless’ plans do come with a lot of caveats, but there are plenty of people out there who would get along just fine with their plans. Especially with a $300 Moto X. If I could get away with a WiFi only plan, I’d do it in a heartbeat. How about you?