T-Mobile USA Enters Home Phone Market with New VoIP Service

Press Release - February 22, 2008

America’s fourth largest wireless carrier, T-Mobile USA, has started selling its own VoIP home phone service in Dallas, Texas and Seattle, Washington, directly challenging incumbent landline carriers for the first time.

The new service, which is available exclusively to T-Mobile wireless customers, allows subscribers to connect any home phone to a special device which routes calls over the internet. It costs just $10 per month for unlimited calling, and customers can keep their existing home phone numbers, the company said in a statement.

This should make T-Mobile more appealing to customers who want to bundle multiple services with a single provider, and aren’t ready to cut off their landline phone subscriptions.

T-Mobile’s VoIP router is now available for $49.99, after a rebate, and an optional cordless phone is available for $59.99.

T-Mobile is challenging both AT&T and Verizon, which provide fixed-line service in different parts of the Dallas area, as well as Qwest Communications International, Seattle’s incumbent teleco.