While the big cable and telephone companies -- along with Vonage -- are charging roughly $25 a month for Voice-over-Internet Protocol phone service, T-Mobile has made VoIP a loss leader.
T-Mobile, a subsidiary of Germany's Deutsche Telekom, announced T-Mobile@Home on Wednesday, a new plan for cell subscribers to get unlimited VoIP service for $10 a month using traditional wired or wireless phones. A $50 router is required, as well as home broadband service and T-Mobile cell service.
T-Mobile's offering allows subscribers to keep existing phone numbers, with home and cell service accessible on the same handset. Subscribers can also use cell features -- like personalized ringtones -- on home lines. By virtually giving away home service, T-Mobile hopes to hopes to retain and attract subscribers.
Lifestyle Changes
The move aligns T-Mobile's service with the lifestyles of many young, urban users, where T-Mobile's coverage is strongest. Many such customers say they have given up a home phone line, relying completely on cell service. For young people on the go, home service is of limited utility but cell coverage is flaky enough that not having a backup service can be problematic.
Joe Sims, vice president and general manager of T-Mobile USA, said the @Home service is targeted at families who aren't ready to go all-mobile. The company tested @Home in Dallas and Seattle, where 97 percent of customers with a traditional landline phone dropped the service after adopting T-Mobile@Home.
At $10 a month, the service isn't making big bucks for T-Mobile. Rather, the service is about reducing subscriber churn, Sims said.
Reducing Churn
T-Mobile USA President Robert Dotson said the new service is taking on the big telcos. "For years the traditional landline companies have been great at consistently delivering one thing to their customers -- a high monthly bill," he said. "T-Mobile is now delivering the...

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