A typical smartphone costs around $200, but it's usually shackled to a two-year contract that often costs $70 or more monthly and includes limits on data consumption, voice minutes and texts. Even prepaid smartphones, without a contract, can cost $30 to $50 a month and carry limits.
But I've been testing an Android smartphone from an upstart carrier that charges just $19 a month for unlimited data, voice and texts—with no contract. That's right: $19 a month, unlimited.
This carrier is called Republic Wireless, a private firm in Raleigh, N.C., which launched its service in December. The sole phone that works with the company's technology is a MotorolaMSI +0.98% model, the Defy XT. The phone costs $249—partly to help offset the low monthly price.
However, as of Tuesday, the company is offering a second pricing option for people who would rather pay less up front: $99 for the phone and then $29 a month, unlimited. That's still a bargain service price. The phone and two service plans are only available online, at republicwireless.com. The company offers a 30-day money-back guarantee. And to sweeten the deal, Republic says Motorola will be offering customers a $50 credit at the GoogleGOOG +1.76% Play online store, where Android owners can buy apps and content.
So what's the catch? Well, Republic is using an unusual technology approach that's smart and may even represent the future. But today, it doesn't deliver the best voice quality and it requires a specially equipped phone. The sole phone that works with the system now is mediocre.
Republic is mostly able to offer such low monthly prices because it's a Wi-Fi-centric carrier. That means whenever you make a voice call while the phone is connected to a Wi-Fi network, your Republic phone places it over Wi-Fi rather than using a costlier cellular phone network. The same is true of texts.
You aren't limited to Wi-Fi calling and texting—the phone can make calls, send texts and connect to the Internet over Sprint's cellular network, at no extra charge. But Republic believes so many people connect their phones to Wi-Fi so often that most calls and other activity will be conducted over Wi-Fi, saving the company money on payments it makes to Sprint. And it says it has developed a system that properly places 911 calls over Wi-Fi, which has often been a problem.
Wi-Fi phone calls aren't new, or unique to Republic. You can easily install an app on your iPhone or Android phone that will place calls over the Internet via Wi-Fi, just like Republic. But these apps generally require you to use a separate dialer and have a separate phone number.
Republic's phone is what it calls a "hybrid" device—the main dialer and text-messaging modules have been configured to work on either Wi-Fi or the cellular network, without the need to launch an app. The phone defaults to Wi-Fi but will place the call over Sprint if it decides the Wi-Fi connection isn't good enough, or if you manually choose cellular.
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Wed Feb 20, 2013 6:56 am
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