As more and more people are using data more than SMS or calls on their mobile phone subscriptions, carriers will become even more competitive, but on a different frontier. But it looks like some Internet providers are also getting in on the action, but this time offering mobile phone services through their WiFi. One of the earliest to jump on this wagon is Cablevision with their new low-cost service called Freewheel.

Since it’s still early days, they are partnering with just one handset for now, which is Motorola’s Moto G, which will come preloaded with apps as well. Users will have access to more than 300,000 WiFi hotspots all over the country. They will be able to send SMS and make calls as long as they’re connected to any of Cablevision’s access points, including those from Comcast, Cox, and Time Warner, who are part of the CableWifi Initiative.

However, the service doesn’t have a fall-back option when for example a user gets disconnected from the WiFi network. That is why Cablevision is focusing on getting new users from areas that have “WiFi rich environments”. While the service is being offered nationwide, but it will be heavily marketed in its “home turf”, the New York Tri-state area where they have more than 1.1 million hotspots. Cablevision turns its users into WiFi networks by adding a separate network that can be used by their subscribers, which will include those that will be on Freewheel.

Existing Cablevision subscribers will just add $9.95 per month to their existing plan to get unlimited talk, text, and data. Those who aren’t using their Internet service will shell out $29.95 per month. Meanwhile, the Moto G will be available for $99.95. We’re looking forward to seeing if this will be a new trend for cable-led mobile services.

VIA: Gigaom

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