The Beginning Of The End For Landline Phone Service?

June 25, 2008

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Telecom Monthly - www.telecommonthly.comT-Mobile today announced a new service which allows home users to abandon their expensive home phone services without losing their phone numbers.  Is the end of wired line home phone service soon to be a thing of the past?

The offering gives the customer a wireless router for a one time charge of $50 and a monthly fee of just $10 per month for unlimited nationwide calling over the WiFi internet connection.  Customers simply plug their touch tone or wireless home phone into the new router and will then be able to make and receive calls as they once did on their landline (customer needs a broadband connection).T-Mobile has been trying to get customers to “Cut the cord” and switch to cellular phones.  But this service is also aimed at eliminating the competitive advantage that its big rivals AT&T and Sprint have had in the wired services.  With T-Mobile’s new “@Home”service, customers may finally have the financial incentive to get rid of their landlines once and for all.  To the consumer the service is essentially the same as what they had before, only much less expensive.

The T-Mobile @Home service is very similar to what Vonage has been offering for years as Voice over IP (VoIP).   Customers have been slow to adopt the new technology, but as major carriers such as T-Mobile begin to offer these new services, momentum for low cost home service replacement is sure to rise.

The phone is dead! Long live the phone!

Comments

2 Responses to “The Beginning Of The End For Landline Phone Service?”

  1. Dan Waldron on June 25th, 2008 10:16 am

    Can you tell me who did your layout? I’ve been looking for one kind of like yours. Thank you.

  2. Todd on July 22nd, 2008 4:21 pm

    In an update to this story, TheStreet.com is reporting that both AT&T and Verizon are bracing for more wireline customer losses (LINK HERE: http://www.thestreet.com/_yahoo/newsanalysis/techtelecom/10429121.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA):

    “In its first-quarter report, AT&T said total switched access lines fell 7.7% from the year-ago period, worse than many analysts anticipated. In its wireline segment, operating revenue has declined over the previous three quarters, while operating expenses have continued to climb. Adjusted operating margin for the wireline segment slid to 18.5% last quarter from 20.1% in the same quarter a year earlier. “

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