Spin Internet is now offering its "free" iBurst wireless broadband in Sydney, after successful runs in Canberra and the Gold Coast.

The 1Mbit/s service offers 200MB of free data, but has reasonably hefty excess usage charges, at 22c/MB (or $220/GB). Spin also still charges over $400 for setup costs, including an iBurst modem.

After announcing the Canberra service last year, Spin was criticised for trying to trap users into large excess bills. But Spin marketing manager Bill McArthur told Whirlpool that only one fifth of users ended up paying excess usage charges.

While the service might be suitable for basic email checking and web browsing, it seems designed to entice users onto higher plans, which start at $50/month. McArthur confirmed this, stating that a "decent percentage are going on to paying plans which is what we hoped for".

But proprietary wireless services such as iBurst now have significant competition from the mobile carriers, with companies such as 3 and Virgin shaking up the market with very cheap data via 3G HSDPA.

McArthur said the free service is now enabled in Sydney, and Spin intends to offer it to Melbourne, Perth and Adelaide in the near future.

Links:

• Spin Press Release  (Spin, 17 Aug 2007)
• Spin Internet announces free mobile broadband for Canberra  (Whirlpool, 21 Nov 2006)