Cablevision Is Introducing Wi-Fi Only Mobile Phone Service

Cablevision System Corp is introducing a wireless Internet phone service to give users an alternative to pricier data plans from cellular companies like Verizon and AT&T, the company said on Monday.

The "Freewheel" phone service, which runs on any WiFi connection, is an attempt by Cablevision to retain and potentially add subscribers at a time when cable companies are losing out to lower-priced, bundled TV and Internet services from telecom firms, Reuters reported.

The Wi-Fi only service is the first of its kind to be launched by a cable company that aims to tap users seeking to unlimited data on their smartphones via Wi-Fi which is less expensive than a cellular connection.

"There has been a dramatic shift in how consumers use their mobile devices: today, it's all about data, and WiFi is now preferred and clearly superior to cellular," Kristin Dolan, chief operating officer of Cablevision, said in the statement.

Such services could pose a challenge to traditional telecom carriers. Currently, carrier Republic Wireless and Massachusetts-based startup Scratch Wireless offer users similar services that use WiFi to control data costs, Reuters added.

Plans

The Wi-Fi phone service from Cablevision will be offered at $29.95 per month and $9.95 per month for its "Optimum Online" service. The company noted that the data plans will be available exclusively on the Motorola Moto G, that users will have to purchase.

The $180 Android phone will be sold to "Freewheel" users without a contract at a discounted price of $99.95.