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

SAN FRANCISCO (AP) - T-Mobile will sell more than 100 smartphone models that tap 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 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.

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 will have to be completed on the same Wi-Fi network.

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