With no external display, the device is configured entirely from a web interface. You configure the hotspot from a web interface The best hotspots also have external antenna ports, to improve signal in rural areas. They usually last all day, which your phone won't do in hotspot mode. Dedicated hotspots don't drain your phone's battery. You can leave them plugged in and running when you take your phone with you somewhere. They support more devices at once than your phone does. For business use, a hotspot line can be billed separately, which many businesses require. Yes, your phone has a hotspot mode, but there are still reasons to get a dedicated hotspot. It's just frustrating that this is essentially T-Mobile's only choice. In a richer lineup, it would be a good low-end choice for people who can't afford or don't need more.
It doesn't show off T-Mobile's rapidly expanding network particularly well, nor does it work better than using a premium smartphone as a hotspot. The Alcatel LinkZone 2 is a low-end hotspot that performs as well as you'd expect from its $90 price. You'd consider that to be a failing, right? But that's what T-Mobile is doing with hotspots. Imagine your mobile carrier only offered low-end smartphones.
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