As AT&T Disquiet Grows, More Consider Using iPod Touch As Full-Time Phone

Leander Kahney ()

mifi-1

The combination of an iPod Touch and a personal WiFi hotspot like Versizon's MiFi is almost ready to replace the iPhone, one CoM reader has found. Image: Wired.com

As more and more U.S. iPhone users become fed up with AT&T, some are seriously starting to consider using Apple’s iPod Touch as a full-time phone.

Trouble is, the Touch doesn’t have cell phone radio. But pair it with a personal WiFi router, like Verizon’s MiFi, and a service like Skype, and the Touch might be a viable full-time VOIP phone.

CoM reader Alex Bowles’ contract with AT&T expires in January, so he seriously looked into replacing his iPhone with an iPod Touch and Verizon’s MiFi. Here’s what he found.

Verizon’s mobile, battery-powered MiFi hotspot can share a high-speed cell connection with several devices via WiFi. It’s sold in the U.S. by Verizon for $100. (Requires a two-year contract and a monthly plan costing $40 or $60 — 250MB or 5GB of data, respectively.)

Pair it with an iPod Touch running Skype, and you have a VOIP phone, plus a high-speed, mobile net connection for your laptop (AT&T doesn’t yet allow iPhone users to tether their laptops to their iPhones).

Writes Bowles:

I’m thinking about it very seriously, as my iPhone contract finishes in January, and I’m really not happy with the value for money that AT&T provides. However, I love many of the apps on the iPhone. And this started to look like an attractive option.

I called Verizon, told them I was interested in running Skype over an iPt through one of their MiFi cards, and asked approximately how much calling I could do within the 5 GB limit on their most expensive ($60/mo.) plan.

They said 17-20 hours, making this roughly comparably to a 1,200 minute per month plan, which (surprise!) costs about $60.

Here are a few advantages to buying data in this raw fashion.

1) Unlike a dedicated phone plan, you get and send whatever you want with it. And you can use any device you like (laptop, WiFi enabled camera, iPt, whatever). And you can use multiple devices at the same time.

2) Unlike a dedicated phone plan (which most people use as their one and only phone), you only run up charges when you’re truly on the go, and not in your home or office WiFi bubble. So substitute ‘free calling on nights and weekends’ for ‘free calling anytime you’re at home or work’ and you see the benefit.

3) iPod touch doesn’t require a contract. Given that the average monthly cost of an AT&T / iPhone contract is about $120/mo., and extends for two years, you’re looking at $2,880 in service charges, compared to $75-80 / mo. for the Skype in+ out (i.e. your own number) + the MiFi data plan and associated taxes. So it’s about $1,000 cheaper. (Cost of the iPod touch + mi fi card is roughly equal to an AT&T-subsidized 3GS).

4) You’re off AT&T’s crappy network, and onto Verizon’s much better alternative.

The top disadvantages.

1) Five hour battery life.

DON'T MISS
Mobile WiFi + iPod Touch = Better/Cheaper Than iPhone

2) You may have to stop Skype to run other apps.

For reasons 1 & 2, this option isn’t good for people who always need to be available to others. However, if you have the freedom to send calls to voicemail, and check them when convenient to you, then no problem.

3) You don’t get the GPS and camera that come with the 3GS. If that’s worth more that $500 / year to you, then it’s a loss.

My assessment – this is almost (but not quite) the way to go. As soon as you can get better battery life, WiFi devices that run VoIP in the background, and something like Google Voice that routes calls to alternate numbers (like your office phone) then you can ditch your dedicated cell plan.

After all, that’s what this is all about – recognizing data as data, and recognizing any plans that force you to use specific devices limited to certain uses of data as gougy artificial crap.

Oh, and that whole “but now I have to carry *another* gadget” thing. No, you don’t. You just put the card in your wallet, et voila! – you’ve merged it with something you always carry anyway. And if you happen to loose your iPod touch, then you just buy another (no contract extension!) or make calls with your laptop.

Alex Bowles is a media analyst.

22 comments »

About the author

Leander Kahney

is the editor and publisher of Cult of Mac, and author of three books about technology culture: Inside Steve’s Brain, the New York Times bestseller about Steve Jobs; Cult of Mac; and Cult of iPod. Leander has written for Wired, MacWeek, Scientific American, and The Guardian in London. Follow Leander on Twitter @lkahney and Facebook.

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Posted in Apple, iPhone, iPod Touch |

  • http://www.grinningidiot.com JAYnLA

    Is it just me, or has anyone else discovered that talking VOIP over Skype on the iPhone is a HORRIBLE experience?

  • thedude

    This is all fine in theory,..however skype alone doesn’t provide a 911 service,..which for some reason was one of the original benefits of having a cell phone.

    Tell “Alex Bowles” to dump AT&T in January and get a Nokia N900 on TMobile.

  • Rubicon

    i’ve had a Skype plan for a few years now. I have a dedicated Skype wifi phone, have it on my laptop and iPod touch. Skype quality has improved to the point it that this scenario is a viable option. I to was considering this very option but 5GB of data is not much. I am waiting for an unlimited data plan of around $80 a month.

  • Guisep

    Go one better, buy a 3G or 3GS and get the camera/gps then use skype. To make it even better jailbreak and then you don’t have to get out of other programs to use the phone..backgrounder and kinkae

  • Gabriel

    Skype seems to “suck” NOW THAT I HAVE AT&T internet too.. INTERESTING!!!!!!
    Anyone else notice this with ur iPhone and At&T internet? AT&T sucks at EVERYTHING THEY DO!!!!

  • http://www.motorcyclebum.com james

    I considered doing this recently when using a Winmo Verizon phone, and attempted to use the Ipod in the community for a month off wifi. The experience is less than great. I don’t think the touch will stand up to the pounding that a mobile device like a cell phone gets in daily use. It was better for me to buy a used Iphone for $200.00 unlock it and run prepaid sims off t-mobile with the mifi. Eventually, the cost was equal to a 400 min plan with the unlimited data for 30 more, with the taxes and minus my employee discount came to equal the cost of the mifi. I’m happy with the experience now, having left Verizon. I will say that in the Seattle region, Skype rocks, I’ve had no problem at all with call quality, dropped call, ect, I’m using approximately six hours of time on skype a month, using google voice to route my day time calls to my office and last month used 19 minutes of my att voice plan.

  • pk de cville

    Whoops!

    All AT&T plans include unlimited calling between 9pm and 7am weekdays and between 9pm Fri and 7am Mon.

    Thus, AT&Ts 1200 min is MUCH Greater than MiFis 5GB ‘plan’.

  • Harden Stuhl

    I cancelled my AT&T iPhone just yesterday because of their crappy service. I applaud your effort but I just got a tracphone , Itouch and a real camera. That is what Backpacks are for. I do miss my iPhone but with AT&T gouging me every time I turn around, their inept ways of business – I just said forget it.

  • http://www.grinningidiot.com JAYnLA

    James –

    But have you been using Skype on your iPhone or iPod Touch specifically? If you’ve got Skype working well on these devices, I’d love a tip from you as to how.

  • Kidslow

    It’s my understanding that the MiFi devices run far too hot to comfortably put in your pocket.

  • Don Pope

    I’m pretty sure the iPod touch doesn’t have a microphone.

  • Cowicide

    > I’m pretty sure the iPod touch doesn’t have a microphone.

    http://www.wi-fiplanet.com/tutorials/article.php/3843126
    How to: Use iPod touch to Make Voice Calls

  • firesign3000

    if there is a a carrier more evil than at&t, it’s vzw. no thanks, i’ll stick with my iphone on at&t. plus who the hell wants yet another device to carry around?? i don’t want to have to haul a backpack around just for all this crap.

  • http://polestar.org/blog/ Bill

    Let me know when you get your first $700 Verizon bill because you find out the estimate they gave you is wildly inaccurate. Verizon customer service has no liability for your use of Skype and they stand to benefit if you go over your usage.

    Maybe it’s just me, but I’ve had no troubles with AT&T since it was the original AT&T Wireless (prior to Cingular). They’ve treated me fairly and service here in the Northwest is quite solid.

    Fact is, you can’t get something for nothing. To get actual, comperable, Apples to Apples service from Verizon will cost you as much, if not more, than the same service from any other carrier – including AT&T.

  • Steven

    Dude, Just unlock your iPhone and use it through T-Mobile. End of story. I’ve done that sense day one. Nothing at all to complain about except the non availability of 3-g speeds. I don’t need internet as I’m driving down I-5 anyway. Id rather limited to hot spots and my home Wi Fi that pay the absurd prices of At&t. I will never use that pathetic company.

  • TRRosen

    You forgot disadvantage #4 Overages cost $50 per gigabyte -.20/min talk time roaming in canada $2000 a GB $8.33 per minute some places $83 a minute.

  • angel

    Very nice article. I really like how you actually get numbers and facts to prove your point. I really like my 16GB iPhone 3G. And to switch to an iPod would be a little weird. I think paying those $1000 extra is worth it for me to be able to be available at all times. And not have to open up an application to make and receieve calls.
    You made me think twice tho. But I’m sticking to my iPhone. Still you get kudos for this great article.

  • serenak

    If you already have an iphone then why use an iPT? Why not get the MiFi and use Skype on that, or Nimbuzz which supports Skype, keep all the phone bonuses like built in mic, speakers, camera, etc?

    Then you could try it for a month and if it doesn’t pan out you still have your iPhone and the ability to use it as before… or am I missing something here as I am in the UK and the O2 deal isn’t quite as gouging as I am led to understand US options are.

  • http://www.seland.org Espen

    I use the combination of Touch and Nokia N95. The N95 as a phone (!) and wifi spot, using JoikuSpot. I also use it as a wifi spot for my laptop on vacation, because you can share it, and as an alternative to bluetooth dialup.

    Here in Norway we can choose between phone operators to use with the Iphone (legally), but I prefer the phone and the “media gadget” to be to units.

  • Daniel

    I’m considering doing the same in ATL with Comcast. They’re offfering a pretty amazing deal with 12Mbps home and unlimited (as far as I can tell) 4G 2Go Metro for $50 an month I had so many dropped calls with AT&T that I canceled the service and bought a metro PCS phone.
    Service has been a lot better but it’s no iPhone and the prospect of being able to have unlimited internet/calling AND fiber optic home service for less than my monthly metro bill is pretty enticing.

  • Derek

    I think the real advantage would be to use a Ipod Touch as your “home” phone with skype and then keep just a regular phone with a much lower plan or even a pay as you go phone. My wife uses around 1250 minutes a month (not counting our mobile to mobile) probably 900 of those are from our house. It was our first overage ever and it was $165 almost enough for a touch…

  • dupree878

    You harp about AT&T gouging, yet suggest Verizon as a viable alternative when you only get 5GB of data for $60/mo. Compared to AT&T’s Unlimited data plan for $30 that’s already on your iPhone.
    Additionally, whenever someone states a blatantly false fact, everything else written loses credibility. The average iPhone customer on AT&T does not have a $120 bill. It’s actually right at $100 as an average. As was noted earlier, there’s little need for a 1200 minute plan with rollover and nights and weekends, plus since you’re so in love with Skype (which I
    notice you didn’t include it’s monthly price in your figures, or do you only make 3 minute calls?) if you’d just use it you could run an iPhone on AT&T with the minimum minutes and the data plan.