Switching from cell to Wi-Fi, seamlessly

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Wi-Fi zealots envision a day when dual-mode cell phones will allow people to talk over a wireless IP network on just about any Wi-Fi network. And with cities such as Philadelphia and San Francisco deploying citywide Wi-Fi networks, there could be some cities in the next few years where Wi-Fi access will be almost ubiquitous.

"The world is going mobile," said Dominic Orr, president and CEO of Aruba Networks, a company that makes Wi-Fi equipment for corporate users. "There are already massive coordinated and uncoordinated efforts to light up Wi-Fi everywhere. And coverage is everything. I am betting that one day Wi-Fi will be almost everywhere."

Limitations to Wi-Fi access
But analysts caution that the dual-mode phone services offered from cell phone operators won't let people access just any Wi-Fi network.

"Anyone who thinks they'll be able to use their dual mode phone from Cingular or T-Mobile at any Wi-Fi hot spot has another thing coming," Forrester's Golvin said. "You have to remember that the operator still programs the software in the phone. So they aren't going to allow people to access Anaheim's or Philadelphia's Wi-Fi network unless they have a special arrangement."

But for a carrier like T-Mobile using Wi-Fi, even on its own Wi-Fi networks, dual-mode service could help it compete against the other big three cell phone operators in the United States. For one thing, dual-mode service will allow the carrier, whose wireless spectrum is relatively constrained, to expand its footprint to include its more than 7,000 hot spots and to increase its in-home coverage.

"It makes sense for T-Mobile to offer this kind of service because their cell phone coverage is so weak," said Golvin.

T-Mobile also doesn't have a lot of spectrum to deliver high-speed 3G data services on phones. That's why the company has put up roughly $4.2 billion so far on bids for new spectrum currently being auctioned off by the Federal Communications Commission. T-Mobile is currently leading the auction, which began about three weeks ago.

For other mobile carriers, the business case for offering Wi-Fi/cellular service is less clear. The three top cell phone carriers--Verizon Wireless, Cingular and Sprint Nextel--each have plenty of spectrum to offer 3G services. They also have strong network coverage throughout the United States. But they could use the Wi-Fi networks to offload some capacity on their 3G networks as more users start downloading bandwidth-intensive applications, such as video.

But most analysts agree that dual-mode services will likely be more appealing to broadband providers than to wireless carriers themselves. Broadband providers could use the dual-mode service to offer their high-speed Internet and voice customers another service that will lock them into a single provider.

For example, Sprint is developing a service through its joint venture with Comcast, Cox Communications, Time Warner Cable and Advance/Newhouse Communications so that users who subscribe to cable voice services can extend that service to their cell phones, giving users a single phone number and single voice mail service. Sprint and its cable partners are still working on underlying technology that will make this service possible.

After it completes its acquisition of BellSouth, AT&T may also want a dual-mode service. AT&T and BellSouth own Cingular. And once the merger is complete, the cell phone company will be controlled by AT&T. Like the cable companies through their arrangement with Sprint, AT&T could add a dual-mode wireless phone service as part of an integrated service package that offers customers a single phone number, voice mail, video programming on mobile devices and other advanced features.

"Broadband carriers would likely sell a converged dual-mode service as an enhancement to their existing broadband and voice services," Golvin said. "But they'll really have to explain to consumers why it's a compelling and valuable service. And that's not something that the phone companies have traditionally been especially good at."

[cary1]

nice idea...

if T-mobile roll outs this service in near future, I will say goodbye to landline.

[Peter Bonte]

Can you say iPhone

I think this is the kind of service Apple has been waiting for.

[robot999]

Brilliant!

This is an excellent deduction. I'll rumor it out even more...Apple
buys T-Mobile, expands network to thousands of locations
worldwide.
; ) too cool.

[robot999]

I'm interested...

in seeing how this will work. I am a T-Mobile customer now (and i
love the service). I will be transitioning to a work-at-home
scenario and this will cause me to dramatically increase my cell
minutes. If I could use my wifi network @ home, that would be
sweet!

[j_d_mayo]

Could be cool...

Does this mean that that companies like Vonage would be taking a beating? Or would T-mobile still require some type of VOIP service to be able to use? For instance, I live in an area that is Cox Communications only and has not yet introduced digital phone. But I am able to get broadband cable internet. Will I even need the digital phone service or can T-mobile cut out the middle man? I am also a happy t-mobile customer.

[MaggieReardon]

T-Mobile Wi-Fi Voip service

From what I understand of the service, customers would not need a separate VOIP line. T-Mobile will provide the Wi-Fi router and enable the dual mode phone. Then users will pay for their usual cell phone service and likely pay an additional $10 or so a month to get all unlimited calling over the home Wi-Fi network using the dual-mode phone. So this defninitely is a service that could replace cable's home phone offering and VoIP services from Skype or Vonage.

[j_d_mayo]

WiFi phone takes out VOIP

Awesome!!

[zanzzz]

The Begining Of The End

Hopefully this is the begining of the end of the current inadequate mobile cell services in the US. While the carriers continuously dangle shiny new multidevices with yet more bells and whistles basic service remains subpar. If these companies are really smart they would be investing in wimax networks with the capacity to offer superior cell and broadband services. This would render the current cellular systems and anticompetitive cable ISP's obsolete.

[kieranmullen]

Unlimited cell service is already available

Most cell phone companies are greedy. My plan is $40 a month +Tax for 1000 min. This still is not a great deal. Fortunately flat rate unlimited cell service has been out for several years. www.mycricket.com I see the market headed in this direction.

However if companies are going to offer WIFI service then they should lower the price to a skype level like .01 per min without monthly fees.

Otherwise people are going to just get their own unlocked dual mode GSM/WIFI phones and do it themselves.
KieranMullen

[disco-legend-zeke]

Once 802.11n blankets the city, no cellphone needed.

The emergance of WI-FI branded 802.11 handsets moves us closer to the day when we can drop or cell phone carrier completely.

While the cell companies are buying spectrum like crazy, a bigger and bigger portion of bandwidth is being carried on FREE unlicensed spectrum.

T-mobile is probably the first carrier to understand where this is taking us.

[chuck_whealton]

Re: Once 802.11N Blankets The City, No Cellphone Needed...

Well, I'd have to agree with you there, that it's going in that direction, but it's not there yet. Plus, let's face it, even when it is there, networks will be locked down.

I don't see the need for cell access going away anytime soon, but it is nice to have the ability to seemlessly switch between 802.11 and cellular connectivity.

T-Mobile does a lot of good things. The unfortunate part is that the coverage of their (cell) network still isn't where Verizon's is YET.

I still continue to keep my eye on them and I absolutely won't rule out switching to them in the future.

Charles R. Whealton
Charles Whealton @ pleasedontspam.com