Verizon Wireless launches Internet phone

Clarification: Verizon Hub customers will get the same international calling rates that Verizon Wireless customers get who subscribe to the $3.99 a month International Value Plan. But Verizon Hub customers will not have to pay the additional $3.99 fee.

Verizon is readying a new product that will marry its wireless phone service with an Internet home phone that uses a broadband network to make calls.

The new phone system, called Verizon Hub, connects to any broadband line to provide home phone service using the Internet. It integrates with Verizon Wireless service so that customers can send and receive SMS text messages directly from their home phone and use location-based services, like Chaperone and VZ Navigator. It also provides additional Web-based services, such as an online calendar and a contact list that syncs with Microsoft Outlook.

The Verizon Hub, a voice over IP phone that integrates wireless services.

(Credit: Verizon Wireless)

The service is designed to give families or multiple people living in a household an alternative to the traditional copper based phone system.

The Hub will go on sale at Verizon retail stores February 1. It costs $199 after a $50 rebate. Customers must sign up for a two-year contract with a monthly charge of $34.99. The monthly service charge includes unlimited local and long distance calling in the U.S., Canada, and Puerto Rico. The service is only offered to Verizon Wireless customers, and the integrated cell phone service only works with Verizon Wireless phones. The Verizon Hub is considered to be a part of Verizon Wireless in-calling plans, so Verizon Wireless subscribers can send unlimited text messages to the Hub and calls made to the Hub phone aren't counted as part of their anytime minute usage.

The product itself consists of a cordless handset that sits in a docking station that has a 7-inch touch-screen display. From this touch screen, users can access several Internet widgets for news, sports, and traffic information. It's also where users can manage their calendars and send and receive text messages from Verizon Wireless phones.

The service is integrated with Verizon's location services. For example, users can look up nearby movie theaters, purchase tickets, and get directions right from the Hub. These directions can then be forwarded directly to a Verizon Wireless phone via an SMS message.

"The purpose of the Hub is to deliver specific content to help our customers manage through their day," said Mike Willsey, marketing director for Verizon Wireless. "And it doesn't require them to turn on their computer or fire up a browser to access the information they want. It's always on."

Additional "satellite" cordless handsets will be available when the Hub launches next month. Pricing for additional cordless handsets hasn't been announced yet. But Willsey said they will likely be sold as part of a bundle.

Bad news for Vonage?
The service that Verizon is offering is very similar to services offered by other voice over IP providers, such as Vonage, which Verizon sued in 2006 for infringing on its technology patents. The companies eventually settled the legal dispute after a long court battle. And Vonage was forced to pay $120 million to Verizon.

Both services offer phone service over a broadband connection rather than the traditional phone network. This means if the broadband connection is disrupted or the power goes out, so does the home phone service. Both services also offer E911 service. Like the Verizon Hub, Vonage also offers many Web-based calling features that can be managed from a computer.

The main difference between the two services is that the Verizon Hub also offers integration with cell phone services, and the Web services can also be managed from the Hub, instead of just from a computer.

But Verizon representatives say they aren't trying to compete against Vonage or any other voice over IP service. Instead, they're trying to offer their wireless customers an alternative to home phone service while also providing added features and benefits.

"We are really targeting people who are cutting their traditional landlines," Willsey said. "People are spending between $50 and $60 a month on that service. And we see wireless and voice over IP as an economical alternative that also offers more features and more flexibility."

Indeed, the Verizon Wireless Hub plan is cheaper than a comparable calling plan from Verizon Communications, a parent company of Verizon Wireless. Verizon charges $40 to $50 a month for unlimited local and long distance calling in the U.S., Canada, and Puerto Rico for its traditional phone service. And without an extra international calling plan, a call to the U.K is $2.89 a minute from a Verizon landline.

That said, the Verizon Hub service is still more expensive than Vonage's Internet calling service. Vonage charges $24.99 a month for unlimited local and long distance calling within the U.S., Canada, and Puerto Rico as well as to five countries in Europe.

By contrast, the Verizon Hub service is $10 more a month, and the company charges wireless rates for its international calls. But a Verizon spokesman clarified that Hub subscribers get the discounted wireless rates without having to pay the $3.99 that its wireless subscribers pay to get those rates. This means that while a Vonage user can call any landline phone in the U.K. for free as part of the $25 a month service fee, a Verizon Hub user would have to spend $0.06 when calling a U.K. landline to make the same call.

But the real kicker is that users must dish out $200 for the Verizon Hub hardware, whereas Vonage provides its wireless equipment as part of the service and allows people to use existing phones.

And Vonage isn't the only VoIP service on the market. There are already several cheap calling alternatives available today. Other cell phone operators are also offering VoIP services. T-Mobile offers a home phone replacement service called Hotspot @Home Talk Forever that allows its wireless customers to add a Voice over IP service for $9.99 a month.

With the U.S. in its deepest recession in a lifetime, I'm skeptical that consumers will be looking to make the additional hardware investment and pay more per month for a service that they can get much cheaper from other providers. But Verizon is confident that consumers will find its service appealing even in tough economic times.

"We think customers will find a ton of value in this product because it offers so much more," Willsey said. "So we think this is the perfect time to launch this product."

[G2001]

Maggie, you didn't mention that Verizon already offers a VoIP service, Verizon Voicewing. This is your basic VoIP service which offers E911, unlimited local/long distance calls in the US, call forwarding/call waiting and voicemail. The really nice part is that if you are going away on vacation and want to receive calls, just log on at a library, access your account and forward the calls. Or, you can always just monitor who is calling. The voice service can be accessed via the web too and emailed to someone. So many advantages with VoIP, yet Verizon seems to keep trying to bundle it's landline phone service with it's FIOS service. Stop paying the big copper phone line fees and get VoIP!!

[tmcmath]

Verizon Voicewing service will be discontinued as of March 31, 2009

[ewsachse]

This costs a hell of a lot more than Verizon Communications' FiOS phone service. With the TV, Internet, and phone package deal, you can get unlimited calling in the US for around $25 a month for the phone part of the package.

[loose_screw]

Why would anyone pay to use VZ Navigator on this thing rather than a free service like Google Maps? I hope it has a full QWERTY keyboard (virtual or otherwise) for SMS texting.

[hightechnh]

So you pay $45-$50 for broadband.....then another $39.00 per month for Phone service?

Why not just wait for the Femtocells and use your current cellular phone instead of your home phone?

But they'll probably have a monthly charge for the Femtocell as well.

[loose_screw]

Knowing Verizon, yeah probably.

[epilgrim]

Maggie I am not sure if you are aware 5Linx Company they also offer VOIP Service and the prices are very competitive.
Their VideoPhone is also a big hit as it replaces your regular home phone with VOIP service as well as a Video attached that you can see the other user on the other end. Presently there is an ongoing promotion as well for the video phone visit this link to get more information - buy one at $199.95 and get one free..with a promo code..

http://www.globalinx.com/SignUpStep1.aspx?intProdID=601

The VideoPhone Offers the following at only $199.95 plus a monthly plan of your choice: A Built In Web Browser!
SD memory card to view photos
Built in RJ11 jack to connect an analog phone
Built-in high quality CCD camera
5" high-resolution LCD Display
External video input and output
Echo-cancellation and no delay high quality audio
Built-in 2 Ethernet port for WAN and LAN connections
Phonebook dialing function
http:://www.voip1stopshop.com

[atici]

Check ooma: www.ooma.com
I think this device works much better than anything else right now and has no monthly costs.

[av8rdude]

I have been using ooma for nearly a month now. Perfect call quality. More features than vonage or any other voip provider because of their scout units.
NO PHONE BILL!

[cellking]

I dont know why anyone would buy all these wonky service that cost so much extra $$$ every month.
I already have a cell phone that I pay for every month and I dont want to pay anymore.
Using an xlink bt lets me access my cell phone from anywhere.
check out www.myxlink.com

[tranav]

this is a rip off. If you T-Mobile cell-phone customer with $39.99 or more customer, T-Mobile provides Hiport router for free and only $9..99/month for IP Phone service with unlimited calling to US&Canada and you can use all your existing analog phone at home. I will switch to T-Mobile cellphone when my Verizon cellphone contract expires.

[ssalava]

I don't really see the value of this offering. I'm paying $100 to Verizon for my full loaded landline and $165 for my Verizon Wireless unlimited voice/text/data plus 3G via my Samsung Omnia -- with the thought of cancelling or significantly reducing the landline bill.

My rural broadband service is not reliable enough for VOIP and I don't see what this new Hub service and hardware buys me other than an cordless extension for my cell phone. And I can already get those like GE's Cell Fusion (Bluetooth) for about the same up-front price and without the additional monthly charge.

[depage]

I have always been depressed by the amount of effort required to get information about Verizon's or anyone else's calling plans. While all of this is available on web sites, there is no comparison table at verizon.com comparing Voicewing to Verizon hub. Details like the international calling rates mentioned above are hard to obtained; I don't get the corrections your correspondents get from Verizon. And while Verizon's web sites are masterpieces of disconnection and poor user interfaces laced with dead end links to nonfunctioning tools, Sprint's sites are no better and Vonage better only because there are less products to confuse. (and don't get me started about Cox and Comcast's web sites and pricing!).

Anything you can do to improve our access to comparison data is appreciated.

[irk1969]

I use Vonage and I am called constantly to transfer my service to other providers, my response is always the same - offer the same features at the same cost and I may consider it. I call family in UK for no additional cost, they provide a virtual UK phone number ($5/month) and I can use my PC when on the road to make calls as if I am home. Vonage's features set and value for money is still the best in the market. If you want to make calls overseas you should consdier the Vonage service

[belal12]

I used to have optimum triple play but because of the tight budget these days, I've cancelled my internet service and got verizon's DSL as a replacement (costs about $10 less than optimum online and speed is OK at 3Mbps), optimum tv service for netflix + roku, and optimum voice for Skype. The savings has been quite a lot actually. Take for example, I used to pay about 30 bucks a month for optimum voice where as now I pay about 4 dollars a month for skype's unlimited calling (and calls are CLEARER!). the internet speed is fine and the only drawback I see is when downloading linux ISO's because my max is around 300Kbps while Optimum Online gave me about twice to thrice that speed. Netflix + Roku has been a blessing! and Skype , although I need to use the PC to make calls, I don't really use it that much. But it's nice for what it does and when I look at the monthly bill, it's amazing.

My other switch was going from AT&T's cell service to Verizon Wireless and I would like to advise anyone even THINKING about switching to verizon to run away! It is the worst possible service carrier and I WISH i wasn't so lazy as to not cancel the service within that first 30 days. I WISH I had done that but now I'm locked in a 2 year contract. I really miss AT&T.

But when my contract is up, I might switch to TMobile and get TMobile's @home service. for 10 dollars a month, I think it is a fantastic deal and I hear TMobile has cell phone service.

[busygy29]

Verizon would be the last company I would go with. Their customer service is terrible. Their wireless network along with their employees do not help you. Verizon sold Maine, New Hampshire and Vermont down the river because we don't have enough of a population to generate money for them. We now have FairPoint. They are even worse. They keep delaying updating landlines and equipment because they don't know how.This was a big mistake. Now FairPoint is losing the backing of investors. What a bunch of idiots. This is my take on Verizon and FairPoint.

[swanie]

WHOA - wait a minute!

1. I currently have Vonage and it costs $18/month for 500 minutes/month.

2. My LL phone used to cost me nearly $38 for a LOCAL DIALTONE - no long distance.

3. I do NOT want an Outlook interface or the web - that is why I have an iMac and a MacBook.

4. BTW this system DOES NOT interface with the Mac.

5. Don't forget the "MagicJack" which is $40 A YEAR, and a PC Magazine Editor's Choice ! !.

You guys are comparing apples and oranges, and the Hub CANNOT compete. The extra "junk" besides the phone is not necessary for the vast majority of us.

BOTTOM LINE - A HUGE RIPOFF.

.

[pghcraig1]

Wow, thats insane for the monthly fee, but the price of equipment is $199, after a rebate?

And The magic Jack is a great value! I love mine.
magicjack.com

[SpiritWater]

Yeah, no thanks. I'll stick with Vonage for VOIP and T-Mobile for my wife's cell phone. I get my phone and service for free from my work.

T-Mobile's VOIP plan is a much better deal than Verizon's. Who needs the fancy phone? I could see the hub deal for those people that don't have a computer, but that's about it.

[yanchineseguy]

You've got to get a chuckle at the sales pitch, though.

"And it doesn't require them to turn on their computer or fire up a browser to access the information they want. It's always on."- Mike Willsey, marketing director.

So instead of powering up your computer and opening your browser to get free information online, they want to sell you what's essentially a separate computer with a browser that you have to keep turned on to get phone service for $200 plus $35 a month for accessing the same internet, on top of what you are already paying for your broadband access?

And they think people will buy this during a recession? Better put this in the Neiman Marcus catalog.

[chris.collins]

The T-Mobile service is actually called T-Mobile @Home, The talk forever name was dropped prior to national launch of the service.

[GoofyRunner]

I guess this is why Verizon cancelled it's VoiceWing service. Vonage appears to be a much better deal anyhow!

[homey4u]

Verizon is a money mooching company who takes advantage of long time members who stick to their old plans & refuse to upgrade on "Junk new plans" I am going to try Mobi PCS unlimited wireless for $50 a month. What a Bargain!
Skype.com is Free to other Skype members for VOIP and with a pay a you need or low per month fee. You can call landlines or cell phones world wide. I had 2 years Free to call land lines US & Canada on Skype till that Vontage took up VOIP and ruined a good thing!