Last week T-Mobile, the fourth largest wireless carrier in America, launched T-Mobile@Home, an offer that will provide its customers with landline phone service for 10$ a month, a cheaper then Vonage price.

The service is based on a WiFi router that lets users use special mobile phones provided by T-Mobile that can route calls over the mobile network (when out) or via WiFi when at home (using a VoIP technology called UMA that tunnels voice traffic over the Internet to T-Mobile’s backbone network), additionally T-Mobile@home customers will be able to plug their old landline phones to the router and enjoy the same unlimited local and long-distance calls included in the offer. T-Mobile@home is available to existing T-Mobile customers who have mobile subscriptions costing at least $39.99 per month and have a broadband connection at home.

Thanks to WiFi and VoIP T-Mobile can compete with AT&T, Verizon Wireless, and Sprint Nextel and their “all you can eat” plans on a lower cost basis. In Seattle and Dallas, where T-Mobile has first tested T-Mobile@home, they say that 45% of users of the service had switched from other mobile operators.

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