Saturday, September 6, 2008

Money & Business

T-Mobile Offers Cheap Internet Calls at Home

June 25, 2008 05:50 PM ET | David LaGesse | Permanent Link

A cordless or corded phone plugs into T-Mobile's router.
A cordless or corded phone plugs into T-Mobile's router.
(Courtesy of T-Mobile)

Here's a new twist on Internet calling: T-Mobile plans to offer a supercheap version, essentially a loss leader to get and keep wireless customers. For $10 a month, T-Mobile customers will be able to make all the calls they want from traditional handsets at home across the Internet. The offer will be available in July.

If the quality is good enough to attract customers, the move is sure to put pressure on AT&T and Verizon Wireless, which already offer Internet phone service. Their service starts at around $30 a month, which is also what cable companies have been charging for their unlimited Internet calls. Even independent competitors like Vonage charge about $25 for comparable service.

T-Mobile at Home will include all the typical bells and whistles—unlimited domestic long distance, voice mail, three-way calling, call waiting, and caller ID. Customers can move their existing phone number to the new line.

The wireless carrier has tested the service in Dallas and Seattle. T-Mobile says that 97 percent of customers dropped their land lines in favor of the cheaper calling.

Unlike other dirt-cheap calling services, including Skype and magicJack, T-Mobile's won't require a PC to make calls. Customers would buy a T-Mobile router to plug into their broadband connection. The router will cost $50 with, in a nod to T-Mobile's wireless pedigree, a two-year contract.

Tags: internet | telephones | T-Mobile

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Reader Comments

New VoIP offering TMobile may not be suitable

I cant really comment on this product as its so new. There is another product on the web from Thrive that is suitable for business and soon for home. For info please contact me at: davewilson@thriveonit.net

Thanks

magicJack

magicjack could have went this route like T-mobile.In fact we have the technology and a Patent pending to make the router a wireless unit,instead of having to plug into an ethernet connection.That is about to go to my point,we are always striving to make this as easy for the customer as possible to install.The magicJack installs in seconds with PlugnPlay capability.Besides the fantastic price,it is the ease of use of getting setup.Using a router is very complicated for the majority of people.Now you incorporate the platform in a TV set top box,Cable modem,and things of the like,it starts to get a little easier.But how do you take these items or this router to your hotel room when you are traveling,or your second home,or you move?10 minutes of calling back home when you travel abroad,can cost you over $40.For what one phone call cost you or one person calling you on your phone number for life with magicJack,you can get Free Local and Long distance for the year with a magicJack.At just $20 a year,with no two year ,$1,200 contact to T-Mobile,you can save money anywhere in the world with a MagicJack.T-mobile has certainly endorsed our strategy,but cannot compete on price.

Inventor of the MagicJack

Dan Borislow

Magic Jack?

Who is this Jack you speak of and whats so magic about him? Sounds a lot like sun rocket voip if you ask me... a little company without the capital to keep the lights on. I know for 10 bucks I get the service of a top 100 service company like T-Mobile and I don't have to worry that they will be out of business in 6 months or weeks...

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Our in-house gadget guru, Senior Writer David LaGesse, tries out all the latest technologies and gizmos, from computer software to GPS systems -- and reports back to you in plain English.

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