GigaOm is suggesting that AT&T (T) offer free WiFi access at 10,000 locations all of its home 3 megabit DSL customers. The technology news site suggests that, to get an edge of cable broadband subscribers, the WiFi offer be extended to all AT&T DSL subscribers as a way to retain and build its home broadband service business.
GigaOm goes further to suggest that Apple (AAPL) iPhone customers also get the free WiFi access since the handset now only works on AT&T substandard 2.5 G network.
The problem with the suggestion is that it is expensive. It may cost the company very little to give the WiFi product to DSL customers, but iPhone subscribers might use the product to set up free voice over IP calls.
But, AT&T may not have a choice. T-Mobile has just launched free WiFi calling for its customers along with standard cell service. If its works the balance of the cellular service providers may have to follow.
Douglas A. McIntyre
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