Resellers are a common topic amongst cellular internet communities. In general, resellers just buy normal plans from carriers and resell them with a high markup. If that sounds fishy to you, it's because it usually is. We actually recommend avoiding resellers, if at all possible. Resellers make claims all the time. Just because a reseller claims that they have no throttles or that they are selling legit hotspot plans, it doesn’t mean that their claims are true.
The main reasons we don’t recommend resellers is because:
1. Most resellers are just selling what a customer can get directly from the carrier (phone, tablet, hotspot, and similar plans).
2. 90% of resellers are scams at worst, or using questionable business practices at best. 5% of them aren’t worth it. 5% of them are only useful in very specific situations.
Unless someone can prove otherwise, we just assume that a reseller is not selling a Legit plan, even if they claim to.
Here is what what is typical for resellers: they blame the carriers for everything that goes wrong.
For example, Nomad. One of the biggest name resellers and is a poster-boy for reseller behavior. They claimed to provide Unlimited AT&T cellular internet for something like $80 a month. Everything was fine and dandy until they started losing these lines left and right. They blamed the carrier for shutting down the lines.
The problem is, without telling anyone, that they were just reselling the $35/month AT&T Prepaid iPad plan (which wasn't allowed, by the way). But since their customers didn’t have their equipment setup with the workarounds, the lines were shut down. Then AT&T got rid of this $35 plan for new signups and Nomad had to find a different plan. They started trying to use other tablet/phone plans, but that got too expensive for them and the lines were constantly shutting down, all while telling the customer that it’s AT&T’s fault - not theirs. They also would say the most famous reseller line, which is “your SIM went bad, we’ll send you a replacement SIM” - this just means that they got caught and the line was shut down, so they sign up for a new line and send that SIM to their customer.
Eventually Nomad got tired of dealing with it all, so they went with AT&T Business Unlimited Hotspot plans to resell. The problem is that these plans are throttled at 8 Mbps and cost Nomad something like $80/month. So they had to resell those plans to their customers for $120-$150/month to make any money.
Some people say that most plans direct from the carriers have some sort of deprioritization after a certain amount of data and that is the reason they go with resellers. The problem is that resellers just aren’t telling people that the plans they are reselling also have depri clauses (because they are probably phone/tablet plans direct from the carrier). It’s all a sales tactic. Of course they aren’t going to tell their potential customers that. How else would they be able to sell these plans?
Now, we are not saying that ALL resellers are like this, but it’s hard to find ones that aren’t.
We just want to raise awareness about resellers.
Of course, everyone is free to make their own personal choices when it comes to the cellular plan that they are using. We just hope that they can make at least an informed choice. We are sharing this to spread awareness because we’ve just seen way too many people burned by resellers. They constantly overpromise and underdeliver.
Instead of using a reseller, check out these options for cellular internet.