Google on Thursday launched its hotly-anticipated MVNO service under the brand name Project Fi. As expected, the Internet giant will allow customers to pay for exactly the amount of mobile data they use, but the jury’s still out on how compelling its price plans really are.

As the name indicates, Fi is a WiFi-first service, which means it automatically connects to one of a network of WiFi hotspots, falling back onto the cellular network of its host partners Sprint and T-Mobile US when the customer is out of WiFi range.

The service is priced at a flat fee of $20 per month for voice and SMS, while data costs $10 per GB. The user buys a data package based on predicted usage, say 3 GB for $30, and any unused data is credited back to the customer at the end of the month.

At first glance, that looks like a compelling offer for low or even moderate data users, but expensive for heavy users.

But it’s difficult to judge the true cost without knowing how much time a customer spends on the cellular network compared with WiFi; the latter is free if the customer is connected via a home or open WiFi hotspot.

Google says customers will have access to a network of more than 1 million free WiFi hotspots, as well as switching to its operator partners’ LTE networks.

"This technology helps keep your speed high and your data bill low," Google said.

There is also the cost of the device to take into account.

The service is initially available for Nexus 6 users only. To buy the device direct from Google, prices start at $649 plus tax, although customers have the option of spreading the cost over 24 months ($27.04 per month) without interest.

Once signed up to Project Fi Nexus 6 users can also access the service via other screens.

"Your phone number lives in the cloud, so you can talk and text with your number on just about any phone, tablet or laptop," Google said. Essentially, customers can use Fi on any device that supports Google Hangouts, the Internet firm’s over-the-top (OTT) messaging and video chat platform, by signing in with their Fi phone number.

Google is inviting those who live in its coverage area – there’s a map on its Website – to request an invitation to join Project Fi.

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