Get ready for the price of making phone calls to drop, probably a lot. T-Mobile is introducing a product to replace most home landlines with internet-based phone service. According to The Wall Street Journal “The service will be available only to T-Mobile cellphone customers. To sign up, they must buy a $50 Web router from T-Mobile and pay $10 a month for unlimited local and long-distance domestic calling.”

It is a good bet that the service will be rolled out to reach customers that T-Mobile does not have a cell subscribers or that AT&T (NYSE:T) and Verizon Wireless will have to match the program In the case of AT&T and Verizon (NYSE:VZ), h will be competing with the shrinking

but profitable landlines businesses which are being eroded by VoIP, particularly from cable companies.

AT&T and Verizon Wireless have already announced flat-rate unlimited calling plans for $99.99 a month. The price war in the cellular market is cutting these stocks down to 52-week lows, but the deal for consumers is outstanding. And, that pricing pressure is about to move into the consumer home phone market.

A cellular price war. A home phone price war. For shareholders in major telecoms, it’s naughty news For consumers, it doesn’t get any better.

Douglas A. McIntyre is an editor at 247wallst.com

Original post by Douglas McIntyre

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