T-Mobile Introduces Unlimited Calling Over Wi-Fi

[HaoHoaCongTu]

The converged cellular-Wi-Fi service, HotSpot @Home, is going up against local phone businesses, VoIP service—and maybe even the iPhone

In the TV commercial for T-Mobile's long-awaited HotSpot @Home service, a wireless morph of cellular and Wi-Fi, a 20-something named Jimmy patters around the house in a bathrobe, soaking in the adoration of his friends: Sure, he was unpopular at school, but all that's changed now that he has converted his home into a Wi-Fi hotspot—and signed up for @Home, launched nationwide on June 27. It's a play for just the youthful audience T-Mobile USA (DT) needs to worry about with the arrival of Apple's (AAPL) iPhone slated to come just two days later through AT&T.

The new T-Mobile service, based on a technology called UMA, can pass a mobile-phone call from a cellular network to a Wi-Fi wireless Internet router at home or a public hotspot, or vice versa, without interruption to the conversation. And in T-Mobile's case, whenever a call is connected via Wi-Fi, it won't eat up monthly plan minutes. Hopeful that some customers may wonder whether they even need regular local phone service, T-Mobile is offering unlimited minutes for calls over Wi-Fi with the $20 monthly fee for @Home (or $10 under an introductory offer). In fact, a call started over a hotspot but continued via cellular will remain free as well.

Goodbye Landlines?
To use @Home at home, however, the service requires a high-speed Internet connection from another provider, such as DSL or cable broadband, as well as a Wi-Fi router and one of two new mobile phones. The service, which can also connect with free public hotspots such as T-Mobile's roughly 8,000 locations, is being launched with one handset from Samsung and one from Nokia (NOK), both priced at $49.99 with a two-year contract. T-Mobile hopes to gradually make all of its devices @Home-compatible. T-Mobile is offering a UMA-enabled Wi-Fi router free with a mail-in rebate.

Here's how UMA technology works: When a user dials or answers a call via a Wi-Fi router, but then walks outside and the signal grows weak, the phone automatically detects and passes the connection to T-Mobile's cellular network if it's within range. The handoff is designed to be so seamless the user doesn't know it's happening.

The @Home service—which promotes T-Mobile as the only phone service you'll ever need—could further erode the traditional wired phone business. Various estimates suggest that between 27% and 41% of cellular minutes are used during calls from inside the home. And some 19% of U.S. households with Internet service have cut the cord, relying on their cell phones exclusively, according to consultancy Parks Associates. If it proves popular, @Home could speed that conversion, inflicting more damage on the local phone businesses at Verizon (VZ) and AT&T (T). In the first quarter, AT&T lost 285,000 residential consumer lines, up from 251,000 lines lost in the same period a year ago. "It's really about displacing the landline," says Joe Sims, vice-president of new businesses at T-Mobile USA.

http://www.businessweek.com/technolo...626_329491.htm

[Nam]

Oh boy, I like this. Time to ditch AT&T, what an unethical company! especially the land line business.

Nam

[bt4kn]

I just hooked my uncle up with the Tmobile home Hotspot. Pretty good for a home. 9.99$ for the line with unlimited nationwide, caller id, 3 ways, etc... The router itself costs 50$ and 35$ activation. 2 yrs contract though

[My Love 78]

I also got on the boat also! Great deal! I wish that the G1 had the UMA!

[HaoHoaCongTu]

With this service, you no longer need a landline for whatever reasons =]

[Rongcon]

Yup, I agreed. I have a T-mobile family plan and with only $9.99 extra (and tax) my whole family (three phones) can tap into our wireless network at home instead of eating up our minutes. It works automatically if you are within a T-mobile wi-fi services too like Starbuck or in an airport. No internet though, just regular calls. Heck, I've been tapping into the wireless network at my work place as well.

[bt4kn]

Bring this router to Vn and you should be able to call the U.S just fine.

anh KABOOM. If u read this message, please enable your PM

[steveh]

There's a catch for those whose use DSL with 1.5 mps or lower. When 1 of you download a file or using youtube, your phone will have problem at that time.