Gallop started talking in early September about the FCC’s quest to provide free internet by auctioning out unused segments of the airwave spectrum. Since then, the FCC has run tests to see if communciations along the spectrum would interfere with the existing networks and the results are favorable. While this is great news for the country’s broadband development, we are very far from the desired result.

First, the established wireless carriers are feeling threatened by the prospect of free internet. Most notably, T-Mobile ( Gallop Forum) is already contesting the results of the tests and is requesting for more time to be spent on analysis before the FCC takes any action. Second, even once all carriers reach the necessary level of comfort with this initiative, it will be years before the network is operational.

As you might expect, existing providers will try to resist this change in order to protect their share of the telecommunications market. But if anything, I believe that this has the potential to be beneficial rather than harmful to them, and here’s why:

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©2008, Gallop Services, Inc. All rights reserved.

The idea of switching a call from your cell phone to a home phone as you walk into your house has been touted as futuristic but achievable by many service providers.  It was even depicted in a recent commercial for Cox Communications (Gallop Forum) cable services. Yet to date, none have really made it happen in a smooth manner.

In the span of a month, two major announcements were made, providing the capability to “move” a call initiated on a cell phone to a more robust network inside the house, or vice versa.  As mentioned in a previous Gallop post, one reason that many customers maintain a home phone line is solely due to the lack of a solid wireless signal within their homes.

By switching the phone call from your mobile carrier’s network to a wireless signal inside your house, the call will obviously benefit from a more reliable signal throughout your home, while at the same time saving your minutes on the mobile carrier’s network - which saves money.

The first announcement came from a little-known company called iCall, which was launched two years ago.  In early June, they released a beta version of the iCall for iPhone.  This application allows users to transfer calls from a regular mobile phone provider to a wi-fi network in your home, at a free or for-pay wi-fi hotspot, or anywhere else a wireless data network is available.  The application is free for incoming and outgoing calls to US phone numbers and only charges for international calls.  Clearly, iCall for iPhone will be a valuable application for iPhone users.

The second announcement was detailed in a Reuters article, regarding the new wi-fi calling service. from T-Mobile ( Gallop Forum).  According to Reuters, the company will charge a $19.99 monthly fee per line for the service, which will be billed on your regular mobile phone bill.

©2008, Gallop Services, Inc. All rights reserved.

T-Mobile ( Gallop Forum) announced today the release of a new wireless phone service.  

As we discussed in a prior post home users prefer to maintain a home phone for a variety of reasons.  Some of the common reasons include children in the house and the ability to reach a babysitter on the home phone, or perhaps for children to call 911 from the home, etc…

T-Mobile created a service whereby a $49.99 wireless router is placed in the house and connected to your existing phones.  The device then offers a home phone for a low $9.99 fixed fee providing unlimited nationwide calls.  Your existing number would be easily ported over to the T-Mobileplan allowing you continuity of contact.

After successful trials in Seattle and Dallas, T-Mobile claims that 97% of those who tried the service dropped their primary home phone carriers.  After this initial success, T-Mobile is launching the service nationwide July 2nd.

For more details see T-Mobile’s press release.

©2008, Gallop Services, Inc. All rights reserved.