The only dual mode Wi-Fi/cellular service in the bunch, T-Mobile HotSpot@Home requires that the subscriber use a Nokia 6136 or Samsung SGH-T709. Both phones are steeply discounted when signing up for the plan, and end up costing less than $100 before additional rebates. The plans themselves cost a minimum of $60 per month -- a cellular plan for $40 or more and an additional $20 month for the Wi-Fi service.
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Additional details on the plan can be found at theonlyphoneyouneed.com, T-Mobile's site for marketing the service.
EarthLink
EarthLink officially launched its first city-wide municipal Wi-Fi network in Anaheim, Calif. in mid-2006, and added Philadelphia shortly thereafter. Although a Wi-Fi-only phone plan for these municipalities was rumored to be announced by the end of 2006, it looks as if these will be available at some point in 2007. EarthLink also has indicated that it plans to offer a dual-mode service through its Helio cellular joint venture with SK Telecom.
Other Players
Cingular and Sprint Nextel have discussed testing consumer-oriented dual-mode services, and it's possible that their trials may be opened up in 2007. Nothing is official yet, and most carriers aren't yet willing to discuss their plans publicly.
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As more cities roll out municipal Wi-Fi networks, many of which are ambitious projects intended to blanket entire areas with free or cheap Wi-Fi access, the opportunity for Wi-Fi phone providers comes into focus. Once Wi-Fi access is ubiquitous and affordable, the phone services begin to reach the critical mass where the benefits to consumers and businesses become more apparent.
Although EarthLink and Google have driven some of the most high-profile municipal Wi-Fi efforts, Microsoft also has recently announced sponsorship of a municipal Wi-Fi project run by MetroFi in Portland, Ore. And many cities and towns simply choose to do it on their own, albeit often on a smaller scale.
Even with the fast pace of cities rolling out these services, there are likely to be a number of challenges. Imagine a busy public space with a Wi-Fi network being bombarded by dozens of people trying to use their Wi-Fi phones simultaneously. The quality of service could drop precipitously, rendering it all but useless for anyone but the most patient.
Nevertheless, emerging technology, such as the faster, longer-range 802.11n wireless networking standard, could be a boon for municipal wireless plans and Wi-Fi phone service providers.