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Stayin' Connected ; Internet Phone Calls Are Heading for Your Cell Phone Through Dual- Mode Networking

Posted on: Wednesday, 11 January 2006, 09:00 CST

By Jessie Seyfer

Internet phone calls, once tethered to desktop computers, are heading for your mobile phone.

As wireless Internet connections become more widely available in homes, offices and even across cities, people are starting to use these networks to make phone calls, analysts say.

For most mainstream consumers, using a wireless Internet, or Wi- Fi, connection to make mobile phone calls is at least a couple of years away, but industry watchers say the technology is moving fast.

Already, Internet phone service is available on a few high- priced smart-phones that have Wi-Fi access. And though they cost upward of $600, prices are expected to fall with time.

Experts say that Internet calls are generally of better quality than cell phone calls because the way data is transferred, known as the Internet Protocol, is more efficient. And currently, Internet phone calls are far less expensive than cellular.

"It's about cheaper voice, better voice and more consumer choices," said Stephen Wellman, editor of the Washington, D.C.- based FierceWireless newsletter.

It's too early to tell whether Wi-Fi calls could someday replace cell phone services. But numerous companies, including Silicon Valley's Avaya, are working on phone technology that can transmit calls over both systems, Wi-Fi and cell, from the same phone.

Analysts predict that such devices, known as "dual-mode" phones, could solve the annoying problem that plagues many cell phones -- calls weakening or dropping once the caller steps inside a building.

The optimal scenario goes like this: A person begins a call outside, and it's transmitted over a cellular connection. She steps inside her home, and her cellular connection becomes weak. But immediately, her dual-mode phone detects a strong signal from her home wireless Internet connection inside. The phone switches the call automatically, without dropping it, to the Wi-Fi network.

"Cell coverage in most people's homes is not all that good," said Forrester Research analyst Charles Golvin. "If you have one of these phones and you have a broadband connection and a wireless home network, you can make that call over your IP network."

Analysts say the market fordual-mode phones is huge. InStat predicts that in 2009, 66 million such devices will be in operation across the globe. InStat also reported that the demand for such mobile phones is a major driver of the entire Internet telephone industry, even though most of such calls are still made over PCs.

Internet phone calls over personal computers are already hugely popular among the tech-savvy set. An estimated 54 million people worldwide use software from Skype -- an Internet telephone innovator -- to talk for free or very cheaply to other users over the Internet. The callers' only cost is for their Internet connection.

Many of the phones expected to come out over the next year will have Wi-Fi access, which will allow consumers to use software such as Skype to make calls over a home, office or hotspot Wi-Fi network. Dual-mode phones will not hit the mainstream market for several years.

At present, only about 5 percent of American households have a Wi- Fi network at home, Golvin said. In Western New York, there are an estimated 29 Wi-Fi free zones with free public access. There are about 1,768 free zones in New York State and roughly 7,000 locations in the United States.

To check on free Wi-Fi zones in your neighborhood, log onto wwww.cnet.com, click onto "Hotspot Zone" under the "CNET Tools" list on the left side of the Web site and punch in your ZIP code to find wireless Internet access locations.

As more evidence of Internet calling's potential, eBay recently bought the Luxembourg-based Skype for $2.6 billion. The Web auctioneer hopes to use the technology to add a new dimension of communication between buyers and sellers.

Fellow tech giants Yahoo, Microsoft and Google have all invested millions this year in Internet telephone companies.

But in terms of mobile Internet telephone calls, there are still a few issues that need ironing out. Seamless call-transfers from cellular to Wi-Fi connections, as on a dual-mode phone, could run into problems if, for instance, a person making a cellular call comes into contact with a strong signal from a Wi-Fi hotspot, but the call won't transfer over because the cellular service provider is a competitor to the hotspot provider.

Analysts expect mobile Internet telephone calling to hit the mainstream first in Europe and Asia.

But in numerous towns and communities across America, including Santa Clara, Calif., Wi-Fi networks have been built by private companies to extend across cities.

Such networks provide great opportunities for wireless Internet phone service, analysts say. In Rio Rancho, N.M., for instance, a company called Azulstar has launched mobile Internet telephone service for residents starting at $20 a month.

The rollout of government-sponsored citywide Wi-Fi programs -- such as those in Philadelphia and San Francisco -- will also push the market for Wi-Fi telephone service forward, according to analysts.

"Philly could launch inexpensive Wi-Fi phones that are just as mobile as the cell phone I'm talking to you on," Wellman said. "It's an excellent place to launch wireless Wi-Fi technologies."

Source: Buffalo News

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