T-Mobile has introduced a new cell phone that allows you to make free calls using a Wi-Fi hotspot, reports The New York Times.

The T-Mobile HotSpot @ Home offering gives you what appears to be - and what, most of the time, behaves like - a regular phone. But under a T-Mobile Wi-Fi hotspot, the phone can access VoIP to make free calls that do not nip into paid minutes.

Users can bounce between normal service and Wi-Fi without any apparent service disruption.

T-Mobile is also providing customers who purchase the phone with wireless routers so their homes become default Wi-Fi hotspots, meaning calls made from home can be free, with the added perk of wireless high-speed Internet service.

The phones work with any existing wireless routers, however.

The phone and service cost $10 a month on top of the normal phone service, though. T-Mobile hopes customers will consolidate their Internet and phone services under the competitive new offering.