Monday, November 19, 2007

free evdo!

But Amazon must be taking a big hit up front on this. My Sprint EVDO data plan costs $60 a month. That is a consumer price. Obviously, Amazon was able to negotiate a much lower price. Even at $10 a month per Kindle, Amazon would need to sell a dozen books just to recoup its wireless network costs. Maybe it got a better deal than that, since the device is designed more for a download-and-read experience than an always-on experience. So the Kindles may not end up using a lot of bandwidth. It is not like most people are going to be downloading a new book everyday. If Amazon was able to negotiate the rate down closer to $1 a month, that would make more sense, because that would only require one or two book downloads per customer to pay for a year’s worth of wireless access. Amazon would not comment on how much it is paying for the wireless network. If it is paying Sprint on a per-device basis, it won’t really matter unless the Kindle takes off in sales.

The new device has evdo! this is great!

No comments: