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RepublicWireless.com just went live with all the details. Here's the catch (they're quite transparent about it):

The phone monitors how much data you're sending over Wifi vs cellular, and if you're using a disproportionate amount of cell data compared to the rest of the community, they can boot you.

"The best way to know how you're doing is by checking out your Cellular Usage Index (CUI). If it's too high, we'll let you know and give you tips to bring it down. You have plenty of time. But meanwhile, you still pay a flat fee of $19/month no matter what."




> if you're using a disproportionate amount of cell data compared to the rest of the community, they can boot you.

Sounds like a simple prisoner's dilemma, with the "selfish" incentive driving people to lower the total consumption. Of course, the prisoner's dilemma only has the optima it does because of a lack of shared information; people can cooperate when they can strategize in some out-of-band way.

For this service, the "cooperation" strategy would entail everyone conspiring to drive the average up, so that the service provides more to everyone without anyone in particular having a "disproportionate" usage.




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