"It's actually pretty cool. In addition to our existing service which uses a broadband connection to make phone calls, the WiFi phone will actually use a wireless connection to make that Internet connection. It comes in a little handheld device that you take with you…put it in your pocket. You can use it in Starbucks, your hotel. While it sounds like a good idea…consumers may be reluctant to buy a phone with such a limited calling area…only working where there is WiFi. But Holder says eventually you'll see combination phones that work on WiFi…and traditional cell networks. How fast will voice over IP grow?
"This is the year when you will see it become real mainstream. The key is as more and more people learn about this technology and understand technology and we put more effort in marketing and educating customers. As soon as they hear about it, it's a no brainer. It makes sense." And the competition promises to make it even more affordable. Bloomberg Boot Camp, I'm Fred Fishkin.