Recently, a certain issue raised many eyebrows and deliberately drew a lot of attention. It was when Sierra Wireless (Nasdaq: SWIR) was reportedly moving into the intelligent mobile hotspot which was said to be occupied by Novatel Wireless. This news, made Sierra wireless look like a tough challenger, and Novatel Wireless as an unintentional underdog.

Why come up with this type of speculation in the first place? This is so, because, Novatel Wireless has been in the state of overproduction of Mifi devices, overpowering customer demand. A weak market makes a company weak itself. To ensure a table market there should have a stable demand for production, unlike in Novatel’s case, wherein they expected a comeback from rival companies.

However, Novatel Wireless contradicted and will be facing the challenge head on with Sierra Wireless in terms of the Machine-to-Machine sector or M2M develops a cellular technology which will be able to link several devices to a computer server for fast data connection.

Verizon Wireless MiFi Data Plans

Verizon Wireless was the first cellular company to offer data plans for the MiFi. Verizon currently has three plans available for consumers. The first plan is $59.99 per month and offers five GB of data throughput and additional five cents over each per megabyte is charged after the first five GB. This plan is well suited for users who download sizable amounts of multimedia such as video and music. It is also great for users who plan to use the vice at least 15 days out of the month.

The second plan which is a bit less expensive at $39.95 per month and offers 250 MB of data throughput but has a charge of $.10 per megabyte for after the first 250 MB. This plan is a good choice for business users who do not necessarily need a very large is amount of data useage or multimedia downloads, and plan to use the  MiFi for connecting to corporate networks and typical web browsing  activity. Although the $39.95 per month rate may seem like a decent bargain versus the $59.99 rate, this plan can be a disaster if the $.10 surcharge is regularly exceeded each month. You may end up spending way more than $60 even though you have not passed the five GB monthly download limit.

The third option from Verizon is not really a plan, but is a daily usage fee of $15 per day, with no download limits within the 24 hour period. This allows us users to only pay for the device on days they actually use it. On a per-day basis, it can be up to five times more expensive  than the contract data plans however it may be a great choice for business travelers who need occasional usage. This arrangement can also work quite well when the MiFi is needed for special event's, such as trade shows, corporate fairs, and sales meetings. The fact that the $15 per day option exists is a nice alternative for those who simply do not need any free usage monthly data plan. It should also be noted, that with the "daily" option, you can purchase the MiFi without any contracts at all - however, it will cost around $200 more for the device, since Verizon is not kicking in the subsidy.

A look at MiFi plans from Sprint

As you might expect the data plans from Sprint for the MiFi device are both similar and different at the same time. Unlike Verizon, Sprint does not offer a non-contract daily unlimited option for the MiFi. Sprint also does not have a lower data-usage tier plan priced less than $59.99 per month.

The basic plan costs $59.99 per month, and like the Verizon plan it offers up to 5GB of data transfer with 5 cent  overage  fee  per megabyte after the first 5GB. This plan is most appropriate for typical Internet users as well as non-existing Sprint mobile phone customers. The only other MiFi plan from Sprint mobile is the $149.95 per month "Simply Everything plan plus Mobile Broadband" . This  plan includes unlimited cellphone  text and picture plus video messaging along with GPS navigation, e-mail and web browsing (on the cell phone). The data limit is the same as the first plan being a monthly limit of five GB with a five cent over to her megabyte after the first five GB. This plan is best for existing "Simply Everything" (without Mobile broadband) customers, since you will realize about a $10 per month savings for the mobile broadband optional addon. Both Sprint plans require a two-year commitment, however the MiFi device can still be purchased without a contract.

So which MiFi provider is right for you?

Verizon has the advantage of offering the lower tiered $39.95 plan in addition to the $15 per day daily access option, so depending on your particular needs and Verizon may have a better fitting plan for you. The disadvantage with the Verizon MiFi plan selection is not so much in the close comparison of the plans themselves but rather in the consideration how Verizon places some limits and restrictions on the device usage such as disabling GPS support whereas Sprint allows the MiFi’s built-in GPS location-based services to be fully supported. Lastly and perhaps most importantly is to consider the 3G coverage offered in the areas where you would perhaps use the device. There are plenty of resources on the web that will help you determine which geographic areas have the best 3G coverage from both Sprint and Verizon.

The one single biggest negative about buying the MiFi without a contract is that you will not receive the carriers customer subsidy, so you can expect to pay around $200 more (around $270 total). Given the fact the the monthly data access plan for the MiFi costs around $60, that cost can be offset in hust over 3 months.

External Battery Packs: A few manufacturers and retailers has designed external battery packs for the MiFi. These packs are sized to the fit the footprint of the MiFi quite nicely. They house Lithium Ion cells, that can be recharged over 500 times, and usually come with a decent wattage AC-Adaptor, so that the battery pack can be completely recharged in about an hour. These external battery packs will add between 8 and 12 additional runtime hours to the mobile hotspot- so you can end up being able to power your MiFi for a up to 16 continuous hours. These external battery packs sport a standard USB charging slot as well, so you can also plug in your other USB charged devices.

External Signal Boosters: The MiFi does not have and external antenna, nor does it have a connection to add one.  This did not prevent a few companies from delivering on the promise to increase the range of the mobile hotspot.  These range extenders work by piggy-backing onto the MiFi. They are generally not much bigger than the MiFi itself, and work by passively reading the wireless signal of the MiFi and then retransmitting the signal several time stronger then the original.  These boosters also can also significantly improve the reception of the unit, since they can accept a variety of external antennas.  A good signal booster can actually inrease the range to that of a stationary WiFi router - about a 300 foot radius.

The MiFi is a mobile hotspot by Novatel which is being retailed by Verizon and Sprint along with their connection plans in the United States. It has a range radius of 30-40 ft. and has a battery life of four hours continuous usage or forty hours standby time and of course it doesn’t have any wires  (except if you want to use the plug in AC Adaptor charger).  It connects to your 3G provider and turns the 3G signal into a regular WiFi signal, all while on the go. The MiFi mobile hotspot is a clear winner outside of the home, so let compare "apples-to-apples" where we can in seeing who might benfit from a single univeral internet connection provided by the MiFi. 

Price: 

The data service plan for the MiFi Mobile hotspot range from $40 to $60 per month. Since you’re dealing with Sprint or Verizon, tack on another $15 in taxes and fees, so you are looking at around $75 per month. The two price tiers are for different data caps - in this case the $40 monthly rate allows for (only) 250 Megabytes of usage per month. Since the MiFi will we used as a primary home connection, I would not recommend this low-cap option. When comparing the $75 monthly fee, it’s important that you count in any possible recoverable fees you may be currently incurring. Assuming you have a "triple play" (voice, data, TV) wired broadband service, subtract the cost of what you are paying for the all-in-one service with the TV only subscription. The MiFi can utilize Skype or several other low cost or free VOIP providers to deliver voice and telephone service to you home. Generally you will find this price differential to be a wash, with the costs negating each other. On first appearance it may seem like the cost is the same, but then factor in any existing mobile data plans you have that the MiFi can replace, and you will see the MiFi as an effective cost savings. The MiFi's build in router may also present some potential saving of having to buy an existing wireless home router. 

Speed: 

 The MiFi will deliver around 5 Mbs download speed, but more realistically in dense urban areas, you may see around half that speed. Cable modems are generally 10 Mbs, while FIOS is around 25 Mbs. The speed winner on face value is clearly wired broadband. The caveat is that not everyone needs 10 mbs download speeds. Remember browsing in the web in the late 1990's with a 56K modem? For regular, everyday "web stuff" 56K is not too shabby - 5Mbs is about 8 times faster then 56K, and should be fast enough for downloading songs and watching videos. The MiFi Mobile Hotspot also has the added benefit of a managed 5 user router build in, so the fact that the fast connection can be shared is a bonus on top. 

 Suitability: 

 If you are a person who lives on the go and takes your connection where they go, the MiFi Mobile Hotspot may be a great alternative. After all, the MiFi device will always be "with you", and the "you", be it at home or on the road, will always be assured a fast connection. The MiFi is likely NOT going to be a realistic replacement for your home broadband if you have a need for the mobile and wired environments to coexist.  The ideal candidate for a MiFi-Only scenario would be a single person who does not need a dedicated wired home connection when they are on the road, but wants a high speed broadband connection wherever they are, be it home or abroad. Plug the MiFi into the wall adaptor and you have for all practical purposes the same setup as a cable modem and WiFi router. The MiFi-Only setup would not be a great choice for a family that needs on-the-go connectivity but has users or other family members at home the same time. The "MiFi as a Primary Home Connection" also would NOT be a feasible choice for those who mass download BitTorrent or Newsgroups, since the 5GB monthly cap would likely be exceeded. 

Conclusion: The MiFi was never intended or marketed as a full time replacement for a wired home broadband connection, however, in my opinion there is a fairly large demographic that I would call the "constantly connected single person" who could greatly benefit from a practical device that can provide both mobile and stationary broadband service for voice and internet at a substantial cost savings over traditional plans.

            Why is this gadget great on family trips and vacations? Because it is very small and light (size comparable to a deck of cards and weighs around 2-3 oz.) you can take it with you basically anywhere and anything that can connect to a wireless router can connect to it. Unlike the older 3GP, Ad-Hoc and HSDP connections which have lots of underlying issues the MiFi doesn’t. It is very easy to setup, just plug it in using its USB jack and install the software needed for activation on any computer. After the preliminary setup, just turn it on and it acts as a wireless mobile hotspot.  The concept of a "mobile hotspot" is not new. Companies like Cradlepoint have been making 3G routers for years - but these products always required you to couple them with a separate USB 3D data modem. There has never been a truly self contained mobile hotspot, in as "all-in-one"  (tiny) package until Novatel released the MiFi 2200 in early 2009.

            With the purchase of a MiFi unit from Sprint or Verizon, the rates will be around $40 for a 250mb cap per month and $60 for a 5GB cap. The speed of the connection will depend on your subscriber but it usually is maxes out at  around 5 mbps downlink which is very fast for a mobile device. The monthly data cap is the only issue you have which limits your connection to the rates and has a $50-60 fee for every 5GBs of data. 

On family trips and vacations, as long as there is a 3G cellphone signal from your subscriber, five devices (or users) can simultaneously share the connection from the MiFi router. So from beaches, to hotels and even in the car you can surf the web to your heart’s content. People usually make the MiFi router their cellular phone via Skype since the rates are much lower at less than $8 a month for unlimited mobile service. This functionality is great for the traveler and his family.

            If you’re wondering about the problem of battery time, don’t fret. The MiFi mobile hotspot has a battery time of four hours for active usage and forty hours standby. But it doesn’t stop there. Some companies offer an extended battery that will give you around ten hours more surfing time and a hundred hour standby time. You can also get a single tethered connection with the USB cable. It’s pretty amazing for such a small gadget to say the least.

Although this mobile hotspot may not replace your wired cable modem or FIOS connection at home, the MiFi does the job for todays  "mobile" family or business person on the go. With it's  blazing download speed and a great battery time, it's a great alternative to your current existing cellphone data plan to say the least.  If you’re looking for a mobile device that can access the internet anywhere and everywhere then get hold of the MiFi mobile hotspot, it's literally the internet "to go" in the palm of your hand.

However, users who buy the American MiFi 2200 may not be able to use the wireless internet device in other countries. The difference in cellular standards between different countries (CDMA and GSM) is causing this problem for MiFi users.

The Novatel Wireless Mifi 2200, currently available in the United States, only work with two networks – Sprint and Verizon. Once each user has chosen the cellular company, the MiFi is permanently attached to that network. Both networks run a CDMA (Code Division Multiple Access) cellular network, an algorithm which is used by radio communication technologies to direct the information sent and received. It was originally made for high-bandwidth devices which need the best reception available such as cellular phones. CDMA devices are permanently attached to the network they start with, so switching networks is impossible for these devices. This makes traveling overseas with CDMA devices expensive as roaming charges are applied – only in North America is CDMA widely used.

GSM (Global System for Mobile) communications, on the other hand, is the most prevalent cellular standard in the rest of the world, with 80% of all cellular phones being GSM phones. GSM devices allow easy transfer between different networks, with just a simple switch of the SIM card provided by one network to that of another network. These SIM cards are readily available as well, from small convenience stores to large shopping centers.

The ease in switching between networks for GSM devices gives many more options to user regarding their cellular plans. They could switch networks whenever they travel, circumventing roaming charges by using SIM cards provided by the local networks of the country they are traveling to.

The European counterpart of the MiFi 2200, the MiFi 2352, works on EDGE, which is a GSM compatible device. These MiFis are capable of functioning nearly anywhere in the world because of their compatibility with most countries’ GSM networks.

Verizon Wireless is currently developing LTE, a new cellular standard which could be done by late 2010. Verizon says that its LTE network, which would be the first 4G network, will allow users to take their devices with them when they travel by using swappable cards for their devices, much like the SIM cards of GSM devices.

The Sprint or Verizon MiFi 2200 would not be a reliable choice for overseas travel, for the compatibility issues discussed. The MiFi 2372, a GSM MiFi rumored to be being developed for AT&T and T-Mobile, would most likely be cheaper and easier to travel with as it has incorporate the much more accepted GSM standard.

However, for traveling across North America, the Sprint or Verizon MiFi 2200 would do great. The fast and reliable service is a must-have.