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KVH enters the cellular Internet market

Ben Stein

Ben Stein

Publisher of Panbo.com, passionate marine electronics enthusiast, completed the Great Loop in 2017.

6 Responses

  1. Howard says:

    $2k for a cellular router and $200 per month for 20GB data seems a bit excessive even for single vendor solution.

  2. Dale says:

    From a technical point of view, this product (or, I should say, “these products” – their competitors included) is bulls–t. Well, unless you enjoy paying $1700 for a $300 router inside an upturned salad bowl.

    The real point of this rant will come further down – skip directly to that, if you so wish.

    According to FCC filings, this is nothing but an off-the-shelf ($300) Peplink Max BR1 Mini with a Sierra 7455 LTE modem, inside a very oversized plastic dome: http://www.industrialnetworking.com/Category/Cellular-Gatways-Routers-Modems-Mobility-Applications/Peplink-Industrial-Cellular-Router-MAX-BR1-MINI-LTE-US-T

    Glomex uses the same concept with their weBBoat deal, only substituting a Teltonika RUT950 off-the-shelf router with a Huawei modem for the Peplink.

    Quoting from the article: “It looks like the foundation for these claims is latest generation technology, carefully engineered RF systems and unthrottled bandwidth provided by multiple carriers.”
    – Unfortunately: no, no and… no. To offer an 802.11n access point as “latest generation” is not only ridiculous, it is an outright lie – 802.11ac is a mature standard by now (around 10x the Wi-Fi (not cellular) speed of KVH:s product in real-life usage), and 802.11ax devices are becoming available with even higher performance.

    Calling this a “carefully engineered RF system” is an insult to RF engineers – the publicly available information regarding this product makes it seem that no RF engineering whatsoever has gone into it – it’s a plain old cellular router with two plain old omnidirectional antennas (possibly non-lousy or even custom ones, for what that’s worth) inside a weather housing.

    “Unthrottled bandwidth provided by multiple carriers” – well, not the way you might think – and not the way Ben explains it in this article. No blame on Ben, though: terminology gets more than a bit confusing in these neighbourhoods of techtown. Carrier Aggregation (as supported by the Sierra modem in KVH:s dome – or rather, in the Peplink router that’s inside) is not the aggregation of, say, Verizon and Sprint. It’s the aggregation of “channel A and channel B”. Both of the channels subject to aggregation normally has to be run by the same “carrier” (i.e. company). The word “carrier” has two meanings; among regular folks, it means “cellular provider; company”, but among RF folks it means “channel frequency”.

    The combination of two *MNOs* (Mobile Network Operators – like Verizon; the less ambiguous terminology) is a simple “one or the other” deal with more or less (usually “less”) intelligent switching between the two.

    ———- The takeaway ——————————-

    What do you get for the extra $1400, that KVH adds on top of the price of the Peplink router that’s inside?

    1) A weather-protective housing that’s probably reasonably easy to install onboard.

    2) Perhaps the more important factor, that might make or break this deal for most customers: a single, packaged-deal solution provider. KVH takes care of everything, including the data plan. No effort needed from you. They’ll even install the thing on your boat and hook it up if you pay them to do it.

    And what about the $200/month plan fee? According to my very brief market research, it seems like you’re just paying for the over-the-counter cost of the *two* data plans that are baked into it, with an extra ~50% added on top for KVH.

    KVH may be an “engineer-driven company” – as the article says – at other times, but not this time. This product is not an engineer’s making, it’s a marketing person’s. An enterprising marketing guy or gal must have eyed all the really cheap plastic TV-1 domes coming from the injection molder, and thought “hmm, perhaps these guys at Glomex are on to something”.

    The marketing mumbo-jumbo about the technical superiority of this product have no substance to them whatsoever. It’s a cheap, previous-generation cellular router in a bowl, and that’s all there’s to it.

    However, do not let that diminish the real point of a product like this: convenience. This is a convenience product. If all you want is plug-and-play onboard Wi-Fi that’s at least cheaper and faster than VSAT when you’re close to shore, then this might be a deal for you.

    For the DIY:ers looking to save $1300, Target has a nice housing that can probably be made reasonably waterproof with some caulking: https://www.target.com/p/plastic-serving-bowl-with-lid-185oz-white/-/A-53097203

    Just add your favourite $300 cellular router.

    • Ben SteinBen Stein says:

      Dale,

      I’d already attempted to clarify the use of Carrier Aggregation once but see I didn’t do a good enough job. I’ve added another note to try and tell that story accurately.

      Although you may not value it the same as others (and I might be inclined to place similar value to you) the all in one service and support model is very important to many potential users of a product like this. KVH isn’t going for the lowest price point, just like several other marine internet products. I have no doubt you will always be able to roll your own solution for less. But, for many people, that’s not a viable option.

      I think KVH has a pretty defensible position on the cost of bandwidth. They’re inline with what Google charges for data with Project Fi at $10/gb. There certainly are cheaper ways to purchase bandwidth but again target audience is a major factor here.

    • Hi Dale, I’m under a non-disclosure agreement with KVH until the LTE-1 system is finalized, but I can tell you that as much as you know about wireless communications, you do not know everything about the LTE-1. For instance, while there is a Peplink Max BR1 Mini inside, you can not buy this particular model anywhere. In fact, one of the engineers who worked with Peplink on it told me that the serial numbers read “KVH-xxxxxxxxxxxx”.

      Also the engineering that KVH did put into the LTE-1 was not about its WiFi connection, which is mainly for device management. As Ben S illustrated above, KVH recommends using the LTE-1’s Ethernet connection with a belowdecks router for best data performance.

  3. KVH just changed the minimum rate for LTE-1 service from $200/month for 20GG to $100/mo for 10GB with the same overage charge of $10/GB (and service suspension fee of $10/mo). So overall it’s a more flexible deal.

    But I’ve seen very mixed performance in midcoast’s Maine’s unusual cellular environment. I’ve heard that service is good in other areas but KVH is still at work on fixing the provider issues I’ve experienced.

  1. September 19, 2018

    […] cheap as $7.50 per gigabyte.  The multiple options and cost per gigabyte compare favorably to what KVH is offering with their LTE-1 and the single plan of $200 for 20 […]

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