T-Mobile launches home phone service
By Michal Lev-Ram
Telephone companies are notorious for their price wars. But a new service from T-Mobile may spark one of the fiercest battles in recent years.
Starting July 2, T-Mobile customers will be able to make unlimited domestic calls using a regular home phone connected to the Internet. Unlike a traditional wired landline, the new service uses Voice over Internet Protocol (VoIP), a technology that converts calls into a digital signal that travels over the Internet. While VoIP has been around for years, T-Mobile’s offering brings something new to the table: At $10 a month, It costs less than half the price of comparable “digital” phone plans from Vonage (VG), Comcast (CMCSA), AT&T and Verizon.
“It’s a very, very disruptive price point,” says Michael Gartenberg, an analyst with Jupiter Research. “Ten dollars a month is pretty darn close to free.”
T-Mobile’s biggest rivals, AT&T (T) and Verizon (VZ), offer VoIP services for about $25 per month. But because both are afraid of cannibalizing their waning landline business, they’ve been cautious about cutting prices. T-Mobile, which has focused on selling access to its cellular network and Wi-Fi hotspots, hasn’t had a traditional landline business — until now. That puts T-Mobile, the fourth-largest U.S. carrier, in a prime position to undercut its competition by offering significantly cheaper VoIP rates.
The new service, dubbed T-Mobile @Home, comes with some strings attached. For starters, it’s limited to new or current T-Mobile cellular customers who spend at least $40 per month on their wireless bill. Subscribers will also need to commit to a two-year contract and purchase a $50 Internet router (broadband connection not included) which they can connect to any regular phone.
T-Mobile’s VoIP foray faces some challenges. The lengthy contract aside, more and more consumers no longer see the value in having a home phone. According to CTIA, a wireless association, mobile penetration has now reached 84% in the United States, and 15.8% of U.S. households have disconnected their home phone, up from 8.4% in 2005.
Forrester Research analyst Charles Golvin says that many potential “cord-cutters” don’t want to give up a home line and have opted for cheaper VoIP services instead. “T-Mobile’s offer is, to a significant extent, aimed at reticent cord-cutters or those without a landline who have reason to miss the service,” Golvin wrote in an e-mail.
T-Mobile is betting that most Americans will keep a home phone. The company is hoping its low-priced VoIP service will not only get current mobile subscribers to sign up, but will also attract customers from rivals.
Gartenberg, the Jupiter Research analyst, thinks it’s just a matter of time before T-Mobile’s competitors respond. “This is going to put a lot of pressure on those folks to match these prices or rethink how they’re offering these services,” he says.
We switched to TMobile and took the @Home service. It works fine when it works. Unfortunately when I connect my security cameras (IP)and redirect the ports to be able to access the cameras from the outside, the @Home service drops and it does not come back until I undo the camera conections. This is absurd why cant they use different ports than the ones used for security equipment? Someone has an answer to this? frodriguez@myacc.net
BTW VOIP is good what really sucks is your Internet connection!! If it is not good and stable your VOIP will neer work properly no matter what bandwith you get.
I switched in July and have had nothing but trouble with the At Home line. Dropped calls, static. Line is dead most of the time. Received second router and nothing is better. Technical service gives different answers with each call. All kinds of excues Sometimes it is a security system causing the problem however I have talked to Honeywell and they have told me there is absolutely no way that is the phone problem. I had great hopes for this and I am really disappointed. What to do? Don’t know if they will fix the problems or what!!!
I switched to t-mobile at home in July, and I am so sorry that I ever did!! I did not even know that I was experiencing any problems because I could not hear them on my end. Every time I called someone or they called me; they would hear a beeping sound on their end. I was told it sounded like I was holding down the keys on the phone! It got so bad that friends and family didn’t want to talk to me on that phone number. Sure wish I never left my service through Time Warner Cable!
I have had Vonage for over 4 years, and have had no problems at all. In fact, it was a very hard decision to transfer to TMobile@Home service as I can be a fiercly loyal customer. That being said, $10 per month service (from a company who has been my cellular provider for over 5 years) vs. $24.99 per month for Vonage was a no brainer.
AS for Skype, I tried the program and did not like it AT ALL: A total dog on my computer, and requires the computer to be on while making calls.
Some pros concerning TMobile@Home are that I have never in 5 years talked to a off-shore rep, and I always have the option to visit a store. I have stayed with them as long as I have because their customer service is domestic and exceptional, IMO. TMobile has offered tremendous value for service. I have 4 cell lines with 1200 minutes shared and free nights and weekends and in-network calls as well as free to 5 Faves (favorites) per phone for $89.97 per month, add my home line for another $10 and I am paying less for 4 cells and a home line than most people are paying for 2 cells with the same service.
As for their towers, I know when we first moved to this town, we barely got a signal in house, but that improved within 6 months as they added towers.
A major con for me is that TMobile @ home does not support fax service and Vonage does. It is my hope and expectation that they will work this bug out. But there are options such as PC fax, and I will use it until they resolve.
Personally, my experience with this company is that they are committed to customer service and have only improved over the years I have been with them.
I signed up for t-mobile at home serivce, and now i honestly wish i had not.
I have had nothing but problems since day 1.
When i call to try and get help, I am transferred to different departments and then hung up on. Once I am able to get through, I am told that someone will call me back in 1-3 hours.
they have only called me back 1 time.
That was at 3 am.
They sent me a different router, and the new router doesn’t work either.
First they tell me it is my internet carrier, then it is my home phone. And now the latest excuse is that is because of the hurricane that just happened.
The router you purchase, is only designed to work with t-mobile at home service. And if you ever stop using their at home service, you can not use this router with any other service.
Linksys reps told me that they don’t know how to use they product, they only build the product to t-mobile.
Once t-mobile transfers you to linksys, and you need to get back to t-mobile, well good luck, cause they can not transfer you back.
Word of advice, don’t sign up for their at home service.
My phone has not worked, more than it has worked in the last month.
Then they threatened to turn me off for non-payment. I told them I am not paying for a service that i can’t use.
Like i said in the beginning, If I had known that I would run into these kinds of problems, I would never had signed up.
With Skype and Magic Jack, you need a computer to stay on all the time. With T-Mobile, you don’t need a computer. May be Skype or Magic Jack should come up with a way to connect at router level. Everyone is not running a computer at home 24/7.
I’ve had TMobile’s @Home service for almost a year (it had a quiet debut last year) because few carriers have reliable cell signals at homes here in Western Massachusetts–the @Home service eliminates that problem, provides free unlimited local and nationwide calling from home and calls are also free anytime you’re out in the world and there is free wireless access. The allotment of tower minutes is more than I’ve ever used, and cost comes in about $50 a month for BOTH home service and cell. Customer service is exceptional w/this company if that matters to you & I’ve never gotten offshore help. There were a few glitches the first 6 mos. but those are gone now. They also have a means for 911 connectivity that includes transmitting your home address even though it’s not a landline. Wireless router is great and works with all my other wireless devices, so I didn’t need to buy one for my laptop. Top notch in my book
I signed up yesterday during their soft launch. The router is excellent and you just plug in your normal landline phone and go. The complete set up took 15 minutes. I’m a happy T-Mobile customer because of their customer service. In store and over the phone kills the competition. I will be glad to pay them $10 and sign a 2 year agreement. My landline has been $50 a month for 20 years.
T mobile is late in the game.I have had Magic Jack for 2 months,picked my phone number,all the features,free calls anywhere in north america+Canada. Cost? $20 a year
Surprised no one mentioned LINGO voip…have had it 2 years…for $24 unlimited calls INCLUDING all of western europe!!! Saves a ton of $ on international calls…
I cant comment on this product as its so new. There is a premier VoiP product out there that is suitable for businesses and SOON for the home user. to learn more please contact me at:
davewilson@thriveonit.net
Thanks
First and foremost, as a former T-Mobile manager, I’ve heard about this 2 years ago and I’m surprised it’s taken this long. Also, T-mobile’s wireless technology is many years behind Verizon, Sprint and AT&T. In my opinion, T-mobile should enhance and grow the network instead of trying to patch the dead spots (No Coverage zones) in the network using their customers’ high speed internet service.
This idea originated because of the numerous complaints they received because of LACK OF COVERAGE in many metro areas.
Many people were not able to get service in their homes, so T-mobile found a way to fill that gap without having to upgrade and/or put new antennas up.
This is just a desperate attempt to compete with the big wireless companies.
This is a WIRELESS + LANDLINE service. It is not available as a $10 stand alone landline service. If you ask me, $10 is expensive for that service.
PS. Average cell phone battery life is 2 hours at the most if not less.
$10 per month for a VoIP service? Isn’t there already a similar product out there called MagicJack? It’s actually nothing new. The quality of the phone call is dependent on the stability of your broadband connection at time of the call. MagicJack only costs $40 to start, where as T-Mobile @Home requires a $50 router, $10 per month subscription, 2 year contract, and is limited to their own cell customers. T-Mobile needs to come up with better deal than this…
Skype is a far better service and I have used it for two years. plus I can get a number anyplace in the US for about 30.00 a year. I can forward a call to my cell phone, and I use if for screen conferencing with a program called yougma with allows 10 remote connections to view my presentations free, and more connections with a small annual fee. This has all been around for years….
With a decent connection VIOP is of perfect quality.
The rip off is in the telcoms constantly trying to overcharge, and kill any competition.
I’ve been with Vonage over 4 years now and never had any problem with connection quality or service. I pay $14.99. all the features included. excellent international rates, lowest in fact. as 911 goes, you have to update you address every time you move and it is routed to dispatch.
as of T-Mobile, their wireless service sucks and can’t imagine doing any better with VoIP.
This article does not make sense.
T-Mobile does not offer 10$ a month VoIP service, they offer a 50$ or more plan with cell and Voip at home.
The reason you don’t hear about Skype in related articles is the fact that with teh @home service your Wi-Fi cell phone actually jumps on a transmits via ViOP as well with no charges to you monthly minutes. If you are at home and talking, and walk out and get in your car and drive off, it will seemlessly transfer to Cell operation. With Skype, you can’t leave.
I already started the process to switch off of Vonage. This is another step towards breaking up the Verizon monopoly on phone service.
As far as 911 calls. When you register your phone number you fill out a seperate form for emergencies that includes your home address. When a 911 call is placed this information is passed to the central 911 hub and then forwarded to a local 911 center.
If 911 service was an issue VoiP wouldn’t be gaining ground and you would have story after story reported in the news.
How is this different to Skype which I have had for a couple of years? I make calls to England for free AND use my camera to see the other party. I use Skype for long distance here in the US and it’s dirt cheap.
excellent move .. I live in Canada and I am paying for VoIP $14/month for phone with 6 features and vmail …about time to move to the IP telephony and stop paying monopoly players such ATT, Comcast and others ..
Has anyone done any serious studies on how reliable VOIP services are, in relation to reaching emergency (911) services, in times of a disaster such as earthquake, flood, hurricane, as compared traditional copper wire services?
If so, what are the findings?
No one seems to mention the 911 issue, one reason we keep a land line is because cellular & VOIP will not pass the ANI or address of the caller.
VoIP is getting very popular now. I think this new idea and offer to customers is going to work quite well. Particularly, i would switch my home phone provider from Verizon to T-Mobile for $10.:)
Skype has for years provided unlimited digital phone service for less then 10.00 a month. Using VIOP and the service is nearly identical to T-mobile and Vonage, yet its never mentioned. I find that very curious.
T-mobile kills wireline dead. ‘Bout time. I shall be signing up on day 1!
“T-Mobile is betting that most Americans will keep a home phone” – is just a very unreasonable assumption. In fact with the new iPhone (http://www.savingtoinvest.com) and growth in wireless devices, home phones are becoming redundant. Besides you can get VOIP on wireless devices for free now – a number of European and Asian countries offer this.
Andy
Frankly, VoIP sucks. Voice quality is important and i hardly had good experience with VoIP calls with all the disturbances, echos and funny noises. I have a good FIOS connection BTW.
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I’ve had the service since July as well. I admit, the first week I had a few glitches due to the phone that I had needed its settings changed to have the ability to have call waiting. After that it has been smooth sailing. Just to show that Tmobile has excellent customer service, they provided me a set of cordless telephones and a 2nd line. I have not had any problems since and have recommended their service to everyone!