Great Idea!
Wi-Fi Phones Next Money-Saver In Telecom
NEW YORK -- Now that some Wi-Fi "hot spots" have grown into broader neighborhood "hot zones," the next wave is waiting: Cell phones and gear that send conversations over wireless Internet networks--for free or at a fraction of the cost of traditional calls.
Mobile phone maker Motorola Inc. plans to introduce a device that would seamlessly switch calls from cellular networks to cheaper Wi-Fi networks wherever they're available. Discount carrier IDT Corp. is testing consumer Wi-Fi phone service in Newark, N.J.
If successful, Wi-Fi calling would be one more factor decreasing calling costs and shrinking revenue at traditional carriers.
Wi-Fi phones employ a technology known as Voice over Internet Protocol, which translates conversations into packets of data that are sent over the Internet, instead of the old, circuit-switched phone system, for part of their journey.
The technology slashes the traditional notion of "long distance"--just as there's no extra charge to send E-mails around the world--and cuts out some of the access fees regional Bell carriers charge.
Wi-Fi antennas broadcast a high-speed Internet connection over the radio spectrum to computers within a few hundred feet. Because that part of the spectrum is unlicensed, free and low-priced Wi-Fi access has cropped up in cafes, bookstores and airports. There are about 18,000 Wi-Fi hotspots in the United States, and it's used in hundreds of thousands of homes.
In theory, whenever people with Wi-Fi phones have access to a hot spot, they might have little inclination to spend extra on a cell phone call. That could terrify the cellular carriers that have spent billions building their networks.
Consumer long-distance companies like IDT see broad new markets for Wi-Fi phoning.
IDT sells 20 million calling cards a month, mostly to new immigrants who may not have their own phones. The Wi-Fi phone packages the company is testing would target the same demographic, with prepaid service, like its calling cards. Schwartz said IDT would expand the offering beyond Newark if it's successful.
One of the leading Internet telephony providers for consumers, Vonage Holdings Corp., plans to offer a Wi-Fi phone for home use later this year. Motorola's device is expected in the second half.
Wi-Fi Phones Next Money-Saver In Telecom
NEW YORK -- Now that some Wi-Fi "hot spots" have grown into broader neighborhood "hot zones," the next wave is waiting: Cell phones and gear that send conversations over wireless Internet networks--for free or at a fraction of the cost of traditional calls.
Mobile phone maker Motorola Inc. plans to introduce a device that would seamlessly switch calls from cellular networks to cheaper Wi-Fi networks wherever they're available. Discount carrier IDT Corp. is testing consumer Wi-Fi phone service in Newark, N.J.
If successful, Wi-Fi calling would be one more factor decreasing calling costs and shrinking revenue at traditional carriers.
Wi-Fi phones employ a technology known as Voice over Internet Protocol, which translates conversations into packets of data that are sent over the Internet, instead of the old, circuit-switched phone system, for part of their journey.
The technology slashes the traditional notion of "long distance"--just as there's no extra charge to send E-mails around the world--and cuts out some of the access fees regional Bell carriers charge.
Wi-Fi antennas broadcast a high-speed Internet connection over the radio spectrum to computers within a few hundred feet. Because that part of the spectrum is unlicensed, free and low-priced Wi-Fi access has cropped up in cafes, bookstores and airports. There are about 18,000 Wi-Fi hotspots in the United States, and it's used in hundreds of thousands of homes.
In theory, whenever people with Wi-Fi phones have access to a hot spot, they might have little inclination to spend extra on a cell phone call. That could terrify the cellular carriers that have spent billions building their networks.
Consumer long-distance companies like IDT see broad new markets for Wi-Fi phoning.
IDT sells 20 million calling cards a month, mostly to new immigrants who may not have their own phones. The Wi-Fi phone packages the company is testing would target the same demographic, with prepaid service, like its calling cards. Schwartz said IDT would expand the offering beyond Newark if it's successful.
One of the leading Internet telephony providers for consumers, Vonage Holdings Corp., plans to offer a Wi-Fi phone for home use later this year. Motorola's device is expected in the second half.
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