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T-Mobile USA Inc., a unit of a Deutsche Telekom AG, will soon offer an Internet calling plan designed to replace home phone service. Customers who sign up for the plan in the two test markets, Seattle and Dallas, will buy a router from T-Mobile. They can then plug any home phone into that router using a traditional phone cord and will pay a monthly fee for unlimited local and long distance domestic calling. In another significant move, four national wireless carriers, including T-Mobile, also unveiled new unlimited calling plans. Investors have reacted negatively, fearing a possible price war. T-Mobile's HotSpot @Home wireless product, which requires a Wi-fi router and has been available for some time, will continue to be offered though customers will need to buy the new router with the phone jack if they would like to opt for the new service. Research shows that 12 percent of customers expect to get rid of their landlines in the next 12 months. T-Mobiles new plan presents new competition for both traditional landline carriers, and Internet phone company Vonage Holdings Corp. T-Mobile, the fourth largest cell phone carrier by number of subscribers, has excelled for years at appealing to cost-sensitive consumers.
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Information Sources, Inc.
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