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May 8 2009, 10:50 am by Derek Thompson

Why the Verizon MiFi Could Kill the Cell Phone

Finally, there's a product that puts a wireless hotspot in your pocket: the MiFi, a battery-powered device the size of a thick business card that provides its own password-protected wireless network (NYT's David Pogue reviews here). This is cool for all the obvious reasons -- with MiFi in your pocket, your computer, phone and iPod Touch are connected to the Internet whether you're on a road trip or the beach. But it's especially cool for a reason Pogue doesn't mention: It could signal the end of cell phones.

That's a big statement, so let's back up a second. Three weeks ago, I cited an argument that VoIP ("voice over internet protocol") could replace cell phones because dialing over the internet is much cheaper than dialing through a national cell phone network. The problem was, if you need the Internet to make calls, you're going rely on Cosi shops and other hotspots for service. Three weeks ago, you couldn't live in a permanent wifi cloud. Two weeks from now, you can.

That means that you won't need a cell phone -- or at least a cell phone plan. As long as you have a device with a speaker and audio that can connect to the Internet, like an iPod Touch, you can use Skype to make all your calls because the service provider (the Internet) is always in your pocket. Verizon plans to charge $40 a month for basic service. Not a bad deal for all-you-can-eat browswing and calling over the Internet.

Now, inevitably, some caveats. First of all, I imagine not a lot of people are jumping to spend $40 a month for an unproven product. Second, the battery life on the MiFi is four hours of use (although it shuts off after 30 seconds of inactivity to conserve energy), and even the infamous iPhone battery beats that by a mile. If you're a BlackBerry nut, you're going to be reluctant to trade your steamlined email checking device for a iPod Touch, which would require you to one program, Skype, for calls and another, Gmail or your other mailbox, for email retrieval. I'm sure there are plenty of other trade-offs that come from trading your phone in for an iPod that I haven't though of yet, but others who have tried say the switch isn't nearly as painful as we think.

So at the end of the day, the question, and the irony, is: Is Verizon now rolling out the thing that could kill the cell phone?

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Comments (10)

AR

Dude, learn to fact check:

"Verizon plans to charge $40 a month for basic service. Not a bad deal for all-you-can-eat browsing and calling over the Internet."

$40-a-month plan limits you to just 250MB, $60 buys you 5 GB.

Also, there is no way in hell this thing or future iterations of this even make a dent in cell phone usage.

miked

I don't see how someone says this device can kill the cell phone. It requires people to carry around two devices, one of which will be a lot larger than a cell phone. Verizon is still mum on pricing and their reps know nothing about the device. Current 5 gig data plans are $60, not $40 a month

Derek Thompson (Replying to: miked)

Re: AR and miked -- Yep, you guys make a good point about the $40/$60 plans. As somebody who uses the net more to read articles than download video, I guess the $40 would be more of an all-you-can-eat deal for me (and plenty of people I know), but not necessarily for every user, so that's a good point to air. But with regard to the overall point that there's no way in heck this will replace cell phones because it requires people to carry ONE extra device, that just can't be true. As a freshman in high school, you didn't need to carry car keys or, for most kids, a cell phone, or an iPod. Today, I carry in my pockets a wallet, two sets of keys, a cell phone, an iPod and headphones. And if you made me give one of those up, I'd freak out. Why should one more thing make a difference, especially if you could just stick it in your bag/briefcase/coat pocket?

mgoodfel (Replying to: Derek Thompson)

You'd be surprised how data-heavy most web pages are now. I use Verizon EVDO for my internet connection (the $60/mo five gig plan), and use about 3 gig every month for just browsing and very occasional YouTube videos (the kind of thing referenced in a news item or blog.) The 250 meg plan isn't going to do for anything but all-text browsing. It's definitely not going to do VOIP.

Brock C.

This device won't kill the cell phone, but they will die pretty soon. An iPhone with just a data plan and running Skype would do it.

And of course Verizon is empowering this - they want to be the ones who kill cell phones with a new business model, not the ones who get killed. They know that Voice is just an app as sure as anyone. Their competitive advantage is providing the nations' best wireless network, not any particular use for it.

CougarRed

Confused. If you don't have a phone plan, you don't have a phone number. So, how could you receive calls over Skype on an Ipod Touch?

frank

SkypeIn plan; you choose any US/Canadian city prefix, same price. As low as $5 a month before package discount. Mom in Wyoming can call you the same way she calls her next-door neighbor, if you get a Wyoming prefix.

Your Monsters Of Mobile

Fact Check: Verizon offers two plans for mobile broadband - 60 for 5gb, and 40 for 50MB. The 5GB plan is a great supplement plan, but I wouldnt suggest it for real internet usage. The $40 plan is great for my grandma, who rarely turns on a computer, and quickly turns it off for fear of blowing it up.

Currently, the Verizon data service relies on the same technology as its cellular signal, and they're not likely to shut that off any time soon - its likely to irritate the other 60+ million subscribers, 1% of which are mobile broadband users.

The iTouch would make a terrible phone; there's only a headphone jack and no microphone, unless you have the appropriate accessory.

The MiFi is by no means a revolutionary device, Verizon just has a good marketing machine. Sprint has had a battery operated device for about a year, just Google 'Sprint Portable Router'

All in all, a very sensationalist article, but not very fact heavy.

Bob Gezelter

Since off-hours unlimited connect time plans are far cheaper than the data service, I would not expect anybody to cancel their voice plans in favor of using a less well integrated solution

I do see an intriguing possibilities for devices of this ilk in the business context of making broadband connectivity available in situations where it is not currently available. In the IT Datacenter context, it has a potential niche for emergency broadband as part of a contingency plans. It also has potential for providing broadband support in places that presently do not have it (e.g., tables in parking lots). It also affects the economics of broadband connections at trade shows, which often have heavy installation charges.

In a corporate context, even the potential overuse surcharges on the 5 GB/month plan are dwarfed by the costs of lost connectivity

A somewhat longer discussion of this potential is contained in my blog, Ruminations -- An IT Blog under Corporate Tool: Mobile WiFi Hybrids.

bryer

"Why the Verizon MiFi Could Kill the Cell Phone"

Actually I see the opposite happening. Software apps like "JoikuSpot" for S60 turns WLAN-enabled handsets into mobile WiFi hotspots, thus hurting the market for such cellular wireless routers.

I don't see the reason for having another expensive subscription and additional hardware for something that an mobile application can already do:

http://www.joikuspot.com/aboutJoikuSpot.php