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T-Mobile to sell phones that call, text on Wi-Fi

By WTOP Staff

MICHAEL LIEDTKE
AP Technology Writer

SAN FRANCISCO (AP) — T-Mobile will sell more than 100 smartphone models with a built-in feature that taps into Wi-Fi networks to make phone calls and send texts when customers can’t connect to the wireless carrier’s cellular network.

The program announced Wednesday represents T-Mobile’s latest attempt to lure wireless subscribers away from three larger rivals, Verizon Wireless, AT&T Corp. and Sprint Corp.

Over the past 18 months, T-Mobile has shaken up the industry by replacing two-year contract commitments with monthly installment plans to pay for smartphones and lowering the cost to upgrade device and stream digital music.

“As part of our DNA, we want to make changes that don’t make us feel bad when rest of the industry copies us,” T-Mobile CEO John Legere said in an interview.

T-Mobile is trying to exploit the hoopla surrounding the Sept. 19 release of Apple Inc.’s iPhone 6 with its new twist on Wi-Fi connections. The iPhone 6’s latest options include the ability to begin a call on a Wi-Fi network and then automatically transfer the conversation to a cellular network without interruption when the device is on the move. T-Mobile is the only U.S. carrier offering this versatility on the iPhone 6, as well as several earlier iPhone models if they upgrade to Apple’s latest software, iOS 8, after it’s released next week.

While other phones sold by T-Mobile will be able to start calls on Wi-Fi, they won’t be able to switch over to cellular network in mid-conversation. That means any call begun through a Wi-Fi connection on a device other than the iPhone 6, or upgraded older iPhones, will have to be completed on the same Wi-Fi network.

T-Mobile US Inc., which is based in Bellevue, Washington, hopes to extend the capability to switch calls from Wi-Fi to cellular networks within the next few months.

Making Internet calls and texting through Wi-Fi already has been possible through several messaging apps that must be installed on smartphones. The feature will be built into all the smartphones sold at T-Mobile’s roughly 3,000 U.S. stores.

The list of smartphones equipped to call and text over Wi-Fi includes popular Android devices made by Apple rivals Samsung, Motorola, LG Electronics and HTC.

T-Mobile’s reliance on Wi-Fi networks for phone calls may be viewed as an attempt to make up for shortcomings in its cellular coverage. Verizon and AT&T, in particular, spend millions on advertising to promote the superiority of their cellular networks.

Legere, though, frames the Wi-Fi calling feature as a sign of T-Mobile’s commitment to extend the scope of its wireless coverage so more people can make calls from rooms and other places with balky cellular connections.

Toward that end, T-Mobile also plans to give its subscribers a special wireless router that can serve as the equivalent of a personal cell tower to make calls from home or other places where connections tend to drop off. The dedicated router for T-Mobile calls can supplement or replace an existing Wi-Fi router and requires a $25 deposit.

“This industry is not yet used to people doing things because they are good for their customers,” Legere said. “We think about pain points, and Wi-Fi (calling) solves a major pain point across the industry.”

Coming off what he characterized as the strongest month of subscriber growth in company history, Legere also reiterated an earlier prediction that T-Mobile will overtake Sprint to become the third largest U.S. wireless carrier by the end of year. T-Mobile ended June with 50.5 million subscribers, a 15 percent increase from the previous year.

Sprint, which mulled a potential buyout of T-Mobile before abandoning the idea last month, ended June with 54.6 million subscribers, up 2 percent from last year.

In an effort to boost its growth rate, Sprint is offering special deals on Apple’s latest device. Buyers of the iPhone 6 or iPhone 6 Plus will be able to get a plan with unlimited calls, text and data for $50 a month, a $10 savings.

The company is also introducing an iPhone leasing program: Pay $20 a month for the device, and get an option to exchange it for the latest model in two years.

Rival carriers offer trade-in programs for all smartphones — not just iPhones — but customers typically would have to pay more a month. A $650 iPhone, for instance, would cost $27 a month over 24 months. But those installment plans let you upgrade more often than every two years.

___

AP Technology Writer Anick Jesdanun contributed to this story.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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