T-Mobile: Move Over, Vonage
Posted by: Olga Kharif on February 21, 2008
Today, T-Mobile USA introduced its first home phone line replacement service. For $10 a month, plus the price of a $50 router, T-Mobile’s existing wireless customers with high-speed Internet connections can make unlimited calls over the Web.
The new HotSpot@Home Talk Forever Home Phone plan is way cheaper than almost every other home phone service out there. Today, Vonage’s service costs $25 a month. Comcast charges $30 per residential phone line when it’s bought along with TV and Web access services. Not only could T-Mobile’s new plan deal a blow to Vonage, but also to cable companies and to telcos like AT&T and Verizon, currently charging about $40 a month for residential lines.
Sure, you need to have a T-Mobile wireless plan worth at least $40 a month to sign up. But that's way less than what most of us pay for mobile service already: Americans' wireless service bills average $55 a month.
Since this plan can save people between $15 and $30 a month on home phone service, I bet that quite a few Americans who aren't yet ready to drop their home lines altogether may switch to T-Mobile just because of this plan.
This pricing move could end up having a huge impact on the Web-calling industry and could kick off a new wave of price wars for home phone service.