Unlimited Mobile Voice/Data/Text for $19 Per Month
Dec. 5, 2011 (Vol. 32, No. 39)
Made you look!
That’s a headline designed to grab your attention. And as with any great offer, if it sounds too good to be true, it probably deserves a second look.
Of course the deal really does exist, but it’s not quite the type of mobile service you’re used to, and you might expect some serious pushback from business users if you try to switch them to it.
However, if “cheap” is a primary requirement in your environment, this might be the best combination of low cost and convenient operation the enterprise mobile space has seen.
Basics on MVNOs
The offer comes from a mobile virtual network operator (MVNO) called Republic Wireless, a division of Bandwidth.com. MVNOs don’t have wireless networks per se, but rather resell services they buy for another operator, in this case, Sprint. Republic is offering unlimited mobile voice, text and data service for a flat $19 per month with no contract.
The question that immediately comes to mind is “How can they stay in business?” The business model depends on using a combination of Sprint’s CDMA network and free Wi-Fi hot spots, a combination Republic refers to as “Hybrid Calling.”
Republic is not installing the hot spots, but rather grabbing a free ride whenever an available hot spot is within range. The company claims that’s about 60% of the time, which is a number that’s been bandied around for some time. If you include your own Wi-Fi network at home, that’s probably a pretty good bet.
How the WiFi Access Works
When the phone comes within range of an accessible Wi-Fi network, it automatically grabs the cheaper option.
Mobile clients from enterprise vendors like Cisco and Siemens did much the same thing, but not integrated as well as Republic’s solution. To make this work, the user has to ensure the smartphone (it only works with smartphones) connects automatically to his or her home Wi-Fi network and any Wi-Fi networks they visit regularly.
There are several Android apps like SysLynx that can automatically save and reconnect to Wi-Fi networks, even if those networks normally require a web portal where you check the “I Accept” box.
There are some shortcomings. First, there is no hand-off between Wi-Fi and cellular like you have in T-Mobile’s unlicensed mobile access (UMA)-based Unlimited HotSpot Calling service.
Wi-Fi-to-cellular handoff in an arrangement like this would be challenging as the network would have to set up a cellular connection to move the call off Wi-Fi, and that call set-up can easily take 10 to 15 seconds. So whatever network you start on, you stay on.
Beware Usage Limits
Given the fact that Republic is paying Sprint for usage on its network, there are limits to the $19-per-month deal.
Republic has come up with a concept called Cellular Usage Index (CUI), which is a measure of how much costly cellular time the user is chewing up. CUI is calculated based on the user’s last seven days of activity.
When users start reaching their limits, they get text messages warning them to get their usage in line. Republic will help users figure out how to do that, but if they don’t get their cellular usage under control, Republic can bounce them off the service.
What’s the limit? The website advises “you could consume 550 minutes, send 150 texts and download 300 megabytes of data without crossing the community’s fair use threshold.”
Unique Integrated VoIP over WiFi
Mobile users have had the ability to place VoIP calls over Wi-Fi for some time, but Republic seems to have come up with a better way of doing it that could make it acceptable for business users.
The traditional approach involved launching an app to place a call, and typically there’s no inbound service unless you happened to be on a Wi-Fi network and have the app open when someone called you.
Republic has integrated the capability, so it is more akin to the native interface on the phone. If the phone is on a Wi-Fi network, it registers with Republic who will deliver incoming calls by that route.
Gotchas to Using Republic
The company’s marketing has a community-oriented flavor to it that’s like “If we all band together, we can make this work”. It has to, because there are tradeoffs and inconveniences involved.
That starts with the fact that Republic currently has only one phone, and you have to buy it outright. Since there’s no contract, there’s no way to subsidize the phone cost.
The phone Republic offers is the Android 2.3-based LG Optimus, which costs $199 and comes with Republic’s Hybrid Calling software installed on it. Additional handsets are planned, but they all will be smartphones and almost certainly Android smartphones. The SDK limitations for either iPhone or BlackBerry would make a VoIP over WiFi capability like this virtually impossible.
The other gotcha is that if your users travel internationally they only can make Wi-Fi calls. Since the cellular component is from Sprint, the handset is CDMA rather than GSM.
Will it Work for You?
It remains to be seen if anyone other than the truly tight-fisted will find the solution appealing, but Republic appears to have done a good job at integrating Wi-Fi calling to make the service more like the traditional cellular calling. For companies that are looking to control costs this could be an option to consider.
The great hope in wireless remains an all-IP data service that allows users to make and receive calls without a traditional cellular voice plan. With Wi-Fi becoming standard on smartphones, those VoIP calls could be sent over Wi-Fi or cellular 3G/4G services, though the performance of VoIP over current 3G services remains iffy.
Patrick Miller of PCWorld experimented with VoIP over Wi-Fi and 4G for a week using a T-Mobile Exhibit II 4G Android phone and a 5-GB $30-per-month data plan. He looked at Fring and Sipdroid, but eventually chose Skype for the test. Skype integrated well with the native Android dialer and he reported that the quality was decent most of the time, particularly when running on Wi-Fi. But in the end he admitted he would not recommend it for everyone, and certainly not for business people who depend on their cell phones.
It’s good to see mobile service providers getting creative in combining Wi-Fi, smartphones and apps, but they’re still falling short of the convenience the vast majority of cellular users have come to expect. However, if a company is providing the phone, they have the right to dictate what kind of phone (and service) it will be.
Bottom line: Nineteen bucks a month for unlimited voice, data, and text is the best deal enterprises have ever seen. 
Michael Finneran is an independent consultant, industry analyst, and writer who focuses on wireless technologies, mobile UC, and fixed-mobile convergence. He wrote the book “Voice Over Wireless LANs - The Complete Guide” (Elsevier, 2008), though his expertise spans the full range of wireless technologies including Wi-Fi, Cellular, WiMAX, and RFID. Contact Michael at mfinneran@dbrnassociates.com. | 
