As AT&T Disquiet Grows, More Consider Using iPod Touch As Full-Time Phone

As more and more U.S. iPhone users become fed up with AT&T, some are seriously starting to consider using Apple’s iPod Touch as a full-time phone.
Trouble is, the Touch doesn’t have cell phone radio. But pair it with a personal WiFi router, like Verizon’s MiFi, and a service like Skype, and the Touch might be a viable full-time VOIP phone.
CoM reader Alex Bowles’ contract with AT&T expires in January, so he seriously looked into replacing his iPhone with an iPod Touch and Verizon’s MiFi. Here’s what he found.
Verizon’s mobile, battery-powered MiFi hotspot can share a high-speed cell connection with several devices via WiFi. It’s sold in the U.S. by Verizon for $100. (Requires a two-year contract and a monthly plan costing $40 or $60 — 250MB or 5GB of data, respectively.)
Pair it with an iPod Touch running Skype, and you have a VOIP phone, plus a high-speed, mobile net connection for your laptop (AT&T doesn’t yet allow iPhone users to tether their laptops to their iPhones).
Writes Bowles:

I’m thinking about it very seriously, as my iPhone contract finishes in January, and I’m really not happy with the value for money that AT&T provides. However, I love many of the apps on the iPhone. And this started to look like an attractive option.
I called Verizon, told them I was interested in running Skype over an iPt through one of their MiFi cards, and asked approximately how much calling I could do within the 5 GB limit on their most expensive ($60/mo.) plan.
They said 17-20 hours, making this roughly comparably to a 1,200 minute per month plan, which (surprise!) costs about $60.
Here are a few advantages to buying data in this raw fashion.
1) Unlike a dedicated phone plan, you get and send whatever you want with it. And you can use any device you like (laptop, WiFi enabled camera, iPt, whatever). And you can use multiple devices at the same time.
2) Unlike a dedicated phone plan (which most people use as their one and only phone), you only run up charges when you’re truly on the go, and not in your home or office WiFi bubble. So substitute ‘free calling on nights and weekends’ for ‘free calling anytime you’re at home or work’ and you see the benefit.
3) iPod touch doesn’t require a contract. Given that the average monthly cost of an AT&T / iPhone contract is about $120/mo., and extends for two years, you’re looking at $2,880 in service charges, compared to $75-80 / mo. for the Skype in+ out (i.e. your own number) + the MiFi data plan and associated taxes. So it’s about $1,000 cheaper. (Cost of the iPod touch + mi fi card is roughly equal to an AT&T-subsidized 3GS).
4) You’re off AT&T’s crappy network, and onto Verizon’s much better alternative.
The top disadvantages.
1) Five hour battery life.
2) You may have to stop Skype to run other apps.
For reasons 1 & 2, this option isn’t good for people who always need to be available to others. However, if you have the freedom to send calls to voicemail, and check them when convenient to you, then no problem.
3) You don’t get the GPS and camera that come with the 3GS. If that’s worth more that $500 / year to you, then it’s a loss.
My assessment – this is almost (but not quite) the way to go. As soon as you can get better battery life, WiFi devices that run VoIP in the background, and something like Google Voice that routes calls to alternate numbers (like your office phone) then you can ditch your dedicated cell plan.
After all, that’s what this is all about – recognizing data as data, and recognizing any plans that force you to use specific devices limited to certain uses of data as gougy artificial crap.
Oh, and that whole “but now I have to carry *another* gadget” thing. No, you don’t. You just put the card in your wallet, et voila! – you’ve merged it with something you always carry anyway. And if you happen to loose your iPod touch, then you just buy another (no contract extension!) or make calls with your laptop.