T-Mobile Tests WiFi/Mobile Services in Seattle

October 25, 2006 - source: BWCS

T-Mobile USA has started limited trials of a hybrid WiFi/GSM service which offers unlimited "free" calls via home WiFi services or at public W-Lan hotspots. The test is currently limited to the Seattle area and, so far, T-Mobile has not announced any plans to roll it out across the US or beyond.

The new service, called T-Mobile HotSpot@Home, will be scrutinized closely by fellow mobile operators mulling similar offerings. Sprint, in particular, is known to be considering such a service via a joint venture it has with some powerful US cable companies. Fellow US mobile giant Cingular is said to be working on a very similar service, though it has not yet reached the trial service.

T-Mobile's customers will be able to use specially adapted phones at home and at hotspots, using unlicensed mobile access technology to automatically detect hotspots and then move seamlessly from WiFi connections to wider cellular coverage. The service, which is seen as a challenge to VoIP companies such as Vonage, will allow users to talk for free, for as long as they want, to connections within the US, whilst they remain connected to a WiFi hotspot.

T-Mobile has made two handsets available to its customers in the Seattle area, the Nokia 6136 and the Samsung T709, each costs US$99 if the customer takes out a one year contract. Doubling the contract effectively halves the price of the handset. Users must also pay the US$39.99 voice plan, plus the WiFi subscription of US$19.99 a month.