My $23/month iPhone (updated)

calling-with-skype1

Acquir­ing the iPhone

So a while back I was lucky enough to acquire an unlocked iPhone 2g for a killer deal from a good friend who upgraded to the 3g. I decided there was no way I was going to pay the $65/month voice & data + 2yr con­tract ser­vice plan just to have and use the world’s best phone. So nat­u­rally, I started search­ing for alter­na­tive ways around this awful money-pit.

Jail­break + Unlock­ing the iPhone

I first jail­broke my iPhone using Quick­pwn, the pop­u­lar DIY easy jail­break­ing appli­ca­tion. But I soon found the mac ver­sion of Quick­pwn doesn’t incor­po­rate the steps to unlock the phone. I instead needed to use iPhonePWN (for mac) to unlock the base­band on my iPhone. Unlock­ing the base­band enables me to use vir­tu­ally any GSM enabled SIM card in my iPhone to send & receive calls.

The GoPhone®

Once my base­band was unlocked, I promptly drove down to the local AT&T store, and bought a $25 Pay-as-you-go  GoPhone card (which comes with a new SIM card) and had them port my pre­vi­ous Ver­i­zon phone num­ber to the newly acquired GoPhone account.

gophone-att-logo

To be safe, before acti­vat­ing my GoPhone account, I down­loaded the iPhone app Boss Prefs in order to dis­able the Edge capa­bil­i­ties of my phone. We don’t want it pulling data down for 1¢/kb and suck­ing up my $25 card. I popped in the new SIM card, then acti­vated my account and VOILA! Send­ing & receiv­ing calls on my iPhone with a pay-as-you go card! The one catch – no visual voice­mail. That is acti­vated through AT&T’s iPhone only ser­vice plans.

The Skype Plan

In order to take this one step fur­ther, I decided to see if my GoPhone — iPhone GoPwn could use the Medi­anet® ser­vice offered to reg­u­lar GoPhone cus­tomers. Hoo boy! Full inter­net access for $20 per 100mb — not bad. Now I can use my edge again… This would never be suf­fi­cient for teth­er­ing to my lap­top, but just enough to browse the web and reap the many ben­e­fits of an edge/3g enabled iPhone.

SKYPE!! So next I down­loaded the newly released Skype app. It works bril­liantly! Skype to Skype calls with the iPhone are no prob­lem! There was one catch… Skype app is lim­ited to WIFI net­works only. So I down­loaded the jail­break app VOIPover3G and this tricks Skype into think­ing the phone is always on WIFI.  I bought a Skype num­ber for 9 bucks and an unlim­ited Skype callilng plan to get inbound and out­bound calls to any phone for $3/month.

Skype calls on the Edge data net­work are just fine and use hardly any band­width. I also down­loaded the jail­break app Back­grounder so I can keep my Skype app run­ning while the phone is locked & in my pocket.

Con­clu­sion

That’s my story! I will keep some credit on my GoPhone account for emer­gen­cies, or occa­sional lazy moments, but besides that just a $20 refill for the data plan, with a lit­tle extra work using the Skype app, and I save myself a bun­dle using mobile VOIP!

++Extra Bonus — No con­tract, I can just stop pay­ing if I need to!

My next goal is to some­how tie this in with my Google.com/voice account!

iphone-screenshot

Update… April 23rd 2009

After about a month of using this setup and the enor­mous pop­u­lar­ity of this post, I decided to follow-up and address some of the ques­tions that have been asked.

Does this really work?

Yes, this works. That’s why I wrote about my experience.

Is this for me? Can I do this to my iphone?

No. This is not for every­one. It is cer­tainly not a fully func­tional, flaw­less method of using an iphone for $23/mo. If you are how­ever some­what tech savvy and will­ing to take some extra steps to save some money and you hap­pened to get a contract-free iphone like I did for $80, then go for it.

What about Skype how well does that work?

Skype works as it should (over WIFI).  I have heard sto­ries of it crash­ing fre­quently on jail­bro­ken iphones. This has not been the case for me. I am on iPhone soft­ware 2.2 (5G77) and it has worked fine. How­ever, Skype over Edge has been a dif­fer­ent story. While it does work, it has it’s issues. For instance: Con­nect­ing a call can take any­where from 10 to 20 sec­onds. 1 out of 5 or 6 times the call is dis­con­nected. There is a lit­tle lag between calls from VOIP to Voice and some­times appli­ca­tion lag. Also, Skype will not con­tinue work­ing when chang­ing net­works. For exam­ple, when leav­ing a WIFI and switch­ing to Edge the Skype appli­ca­tion must be relaunched in order to send or receive calls.

What about bat­tery life with Skype run­ning 24/7?

The bat­tery life has been fine for me so-far. This is likely due to the fact that I’m a graphic designer and I have the lux­ury of leav­ing my phone plugged in for at least 4–6 hrs a day.

Is the 100mb/mo sufficient?

The 100mb Medi­aNet is a ser­vice from goPhone for the price of $20. This data expires after 30 days. I am around a WIFI prob­a­bly 80% of my day. So the other 20% of my life I’m not on WIFI, I reg­u­larly checked my email, looked up maps, made calls and watched the occa­sional video. I used about 65mb in 30 days of usage. This 100mb would never be suf­fi­cient for teth­er­ing, but it works just fine for all the iphone apps which call for inter­net usage.

What about SMS?

If your feel­ing ambi­tious, there are sev­eral iPhone apps that let you send free text mes­sages VIA data. They have their draw­backs (unable to reply some­times, and hav­ing to check a web­page for incom­ing mes­sages… The other solu­tion is to use Skype’s SMS ser­vice, but they have their own fees which aren’t much bet­ter than AT&T’s SMS plans. I am not a huge tex­ter so I have just been buy­ing blocks of SMS mes­sages on my GoPhone account — $4.99 for 200 messages.

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171 Comments

  1. Posted April 6, 2009 at 11:47 am | Permalink

    The future is now!

  2. Posted April 8, 2009 at 8:51 am | Permalink

    Holy cow!

    This is your best post yet. I think this has Digg/Stumblupon writ­ten all over it.

    I need to do this. My iPhone bill is ridiculous.

    One ques­tion: can I pwn my iPhone if I have the lat­est firmware? It seems like every time I jail­break, apple updates the firmware and the jail­break gets bro­ken (haha.) What a vicious cycle!

    –Kirk

  3. admin
    Posted April 8, 2009 at 9:21 am | Permalink

    I think most of the devel­op­ers skipped the 2.2 jail­break and went straight to 3.0 beta devel­op­ment. There was an “unof­fi­cial release” (quickpwn.com) but there has been bad reviews of the sta­bil­ity and sup­port so far. There should be another release for 2.3 before 3.0 but you might just have to wait until June!!

  4. Posted April 16, 2009 at 12:50 am | Permalink

    This is GREAT!! I’ve been think­ing of ways to use my iPhone 2g and an very excited to try this out.

  5. Marc
    Posted April 21, 2009 at 9:18 am | Permalink

    Good think­ing! But you paid too much for skype. I got 1 full year of unlim­ited ser­vice with a skypein num­ber (wich you can even choose) for $57. I installed on a old Win­dows Mobile phone and that’s all I need to run my offi ce.

  6. woundedduck
    Posted April 21, 2009 at 9:23 am | Permalink

    You are a god/goddess.

  7. G
    Posted April 21, 2009 at 10:19 am | Permalink

    Lost cred­i­bil­ity at “…just to have and use the world’s best phone.” Not the best phone, a nice one but not the best.
    on to next blog…

  8. Patrick
    Posted April 21, 2009 at 10:53 am | Permalink

    @G, I bet you’re unable to read most blogs…

    Seri­ously, great post.

  9. Posted April 21, 2009 at 10:56 am | Permalink

    lol thanks Patrick!

  10. Posted April 21, 2009 at 11:34 am | Permalink

    Inter­est­ing, I didn’t think VOIPover3G worked with the 2G iPhone. What you have set up is pretty cool! I’m too big a fan of teth­er­ing to set some­thing up like this myself.

  11. Josh R.
    Posted April 21, 2009 at 11:53 am | Permalink

    Seem to be get­ting an error back when I post com­ments, but the com­ments are still show­ing up?! Might want to look into that.

  12. Posted April 21, 2009 at 1:25 pm | Permalink

    iphones are for nerds and squeeky geek herd­ing nerd birds, like pocket pro­tect­ing seag­ull flocks and clocks with?.. wrist watch cal­cu­la­tors and NEs emu­la­tors squeaky seal bocks knit­ted socks and pop rocks, I’m a sev­enth level sword mas­ter all your iphone are belong to me now, your iphone GPS all got ya lost in Mori­dore and you’re like “my legs are sore” rot­ten apples. some­thing like “Apple prod­ucts suck”

  13. fenderflip
    Posted April 21, 2009 at 2:23 pm | Permalink

    You are an amaz­ing person.

  14. Jason
    Posted April 21, 2009 at 2:44 pm | Permalink

    What about SMS messaging?

  15. jimbob
    Posted April 21, 2009 at 2:52 pm | Permalink

    HAHA! This arti­cle was so funny! At one point you say: “…just to have and use the world’s best phone.” I have never herd some­one rate so highly the steam­ing pile of dog crap that is the iphone. Silly 4/4/09 wasn’t April Fool’s Day.

  16. Posted April 21, 2009 at 2:53 pm | Permalink

    @Jason Great ques­tion! SMS is another snag to this deal. If your feel­ing ambi­tious, there are sev­eral iPhone apps that let you send free text mes­sages VIA data. They have their draw­backs (unable to reply some­times, and hav­ing to check a web­page for incom­ing mes­sages… The other solu­tion is to use Skype’s SMS ser­vice, but they have their own fees which aren’t much bet­ter than AT&T’s SMS plans. I am not a huge tex­ter so I have just been buy­ing blocks of SMS mes­sages on my GoPhone account — $4.99 for 200 messages.

  17. Posted April 21, 2009 at 2:56 pm | Permalink

    @jimbob I don’t hear you list­ing other phones that can do any­thing remotely close to this.

  18. cheapbastard
    Posted April 21, 2009 at 3:22 pm | Permalink

    Good lord the lengths to be a cheap bas­tard.
    I am sur­prised I didn’t read “I use open wifi spots to text my friends my moms home num­ber to them so I can sneak in the kitchen and talk to them for free.

    Then we go to the the­ater and one friend pays, then opens the emer­gency exit door so we get in, then we col­lect pop­corn from the floor and an old bucket, then we take that pop­corn bucket up to the front and say this pop­corn is cold and awe­ful I demand two buck­ets of pop­corn for free
    mwa ha ha, the world is mine!

  19. kdfhs
    Posted April 21, 2009 at 3:35 pm | Permalink

    star­bucks swill­ing crock of apple disksplashy

  20. Joel
    Posted April 21, 2009 at 6:55 pm | Permalink

    You sir are an inspi­ra­tion. I was try­ing to fig­ure out how to do this before I got an iPhone.

  21. Brian
    Posted April 21, 2009 at 7:38 pm | Permalink

    I’ve actu­ally been think­ing of doing almost the same thing with a Nokia E63 or sim­i­lar. I’m around wifi net­works most of the time, so I might use Skype wifi when avail­able, and T-mobile pre­paid at ~8.5 cents per minute when not. Then google voice to for­ward all calls through a sin­gle num­ber. That still leaves some kinks to work out, so maybe I’ll look into Medi­aNet and Skype.

  22. xex
    Posted April 21, 2009 at 7:43 pm | Permalink

    Theres noth­ing wrong with being cheap, some­one pay­ing an aver­age of $70–80(taxes and fees and all added onto the $65) a month looks almost stu­pid when com­pared to this.

  23. john
    Posted April 21, 2009 at 8:25 pm | Permalink

    what you saved in money you wasted in time, energy and fuckin coolness

  24. Tsion
    Posted April 21, 2009 at 8:29 pm | Permalink

    Just stum­bled, here come the hits ;)

  25. Desi
    Posted April 21, 2009 at 9:29 pm | Permalink

    Great arti­cle.

    Thank you.

  26. Argos
    Posted April 21, 2009 at 11:03 pm | Permalink

    Nicely writ­ten. Crap phone.

  27. bill jobs
    Posted April 22, 2009 at 2:44 am | Permalink

    world’s best phone’ LOL
    do you also believe in creationism?

  28. christian
    Posted April 22, 2009 at 5:51 am | Permalink

    apple fails to pro­duce prod­ucts that are fairt to the customer.

    iTunes/DRM
    iPhone/Tmobile
    OSX/usability

    they need to kick steve out.

  29. TresApples
    Posted April 22, 2009 at 6:07 am | Permalink

    Very nice write up.. one ques­tion though : Hows your bat­tery life ?
    I find with Skype run­ning for a while, and con­stant 3g, I cant last more than half a day before a recharge is needed. And I would imag­ine back­grounder only adds to the prob ? very cool oth­er­wise, you tight­wad :)

  30. Dan
    Posted April 22, 2009 at 6:19 am | Permalink

    You are about to find out that using Skype over a less than awe­some net con­nec­tion sucks. A few dropped calls is all it takes.

  31. steven
    Posted April 22, 2009 at 6:30 am | Permalink

    why oh why do peo­ple post just nasty com­ments!?! they don’t come up with alter­na­tives, don’t offer some­thing con­struc­tive and don’t back their com­ments with proof or ref­er­ences. so i’m forced to guess that they’re 12 hear olds using their dad­dys com­puter and they should’ve been in bed an hour ago. i know it’s cliche but as the say­ing goes “if you’ve got noth­ing nice to say, don’t say any­thing at all”. in other words — SHUT UP.

    as for your arti­cle. i found it insight­ful, use­ful and enter­tain­ing. i’m stum­bling this and rec­om­mend­ing this arti­cle to all my friends. for just a lit­tle effort and some knowl­edge, you’ve made your­self a HUGE sav­ing. bravo for you! and you’ve effort­lessly made fools of those who fall prey to the sys­tem that rips the rest of us off.

    and yes. the iphone is the best mobile phone there is. i’m sorry but it is. those who say oth­er­wise sim­ply can’t afford one them­selves. and they’ll be the first to deny it.

  32. Posted April 22, 2009 at 7:55 am | Permalink

    Great Arti­cle. Delicious-ing it !

    I have an iPhone and DO NOT think its the best phone out there. Maybe the best mobile inter­net device but cer­tainly not a good phone.

    In the Euro­pean Union, I bought an 3Giphone with no con­tract in Belgium.

    Keep it up !

  33. mark
    Posted April 22, 2009 at 8:13 am | Permalink

    Great arti­cle, though I’m curi­ous, how are the qual­ity of your calls? I pay $48/mo with tmo­bile for 300min/200txt on my iphone.. this def­i­nitely sounds like a bet­ter deal though.

  34. Posted April 22, 2009 at 9:29 am | Permalink

    Now if only there was a app that did all of that in a click of the button.

    Excel­lent idea, Im going to try it!

  35. Shaze
    Posted April 22, 2009 at 9:49 am | Permalink

    What we’re talk­ing about is the slow tran­si­tion away from major car­ri­ers for phone calls. As North Amer­i­cans, we pay more than any other coun­try for mobile data-services (Tex­ting, Voice Mail) and long dis­tance (not to men­tion data “plans”). So now we enter the age of the VOIP/SIP enabled phones, and we real­ize that we now have a choice. You can go online and buy a phone num­ber (DID’s) and have it redi­rect calls to ANY online provider; such as Google Talk, Skype, SIP or any other num­ber. Once the iPhone 3.0 soft­ware comes out with Push noti­fi­ca­tions and great VOIP sup­port, we can all drag the phone app off our launch­bar and replace it with Siphone, Skype or any­one else who wants my money. Now if only we could get cheap roam­ing data…

  36. mk
    Posted April 22, 2009 at 10:29 am | Permalink

    The phone itself is fine but the end­less pos­si­bil­i­ties of the app store are what makes the iphone great. Peo­ple who don’t uti­lize it can’t and don’t know what they’re miss­ing. The only bad thing has been the con­tract and the price, both of which have been ..pwned. While it is some amaz­ing tech­nol­ogy, $65 per month adds up quickly and $2000 is not some­thing I feel very much like spend­ing for a phone and some sweet appli­ca­tions. You’ve done well to cut that cost to a frac­tion and peo­ple who don’t see the value in sav­ing money sim­ply do not deserve to com­pre­hend it.

  37. Posted April 22, 2009 at 10:39 am | Permalink

    I’ve got a sim­i­lar setup going with my iPhone in Canada. I have a PAYG Rogers account, I hacked their $7 a month unlim­ited WAP pack­age into work­ing on the iPhone, then use my $20 home Von­age account through Siax when I have wi-fi coverage.

  38. Posted April 22, 2009 at 11:23 am | Permalink

    Well.….

    This would be great if it didn’t more or less turn your iPhone into an iPod Touch w/ Skype.

    $23/mo and hav­ing data you didn’t need to pull from Wifi would be nice.

  39. kousi
    Posted April 22, 2009 at 11:42 am | Permalink

    Phu­sion, you’re not not­ing that his phone works with­out 802.11 fla­vor wi-fi. In effect it works any­where, and if for some rea­son Skype isn’t cut­ting it he can still use the reg­u­lar phone fea­tures. I can’t wait to do this myself, saves me from my $90/mo phone bill. My new iPhone 2G is in the mail…

  40. Gregg
    Posted April 22, 2009 at 11:51 am | Permalink

    Hi All,
    I’d like to add some­thing to the story… I just bought my iPhone at Apple store. I know, I know it’s expen­sive. I paid for 16GB $760 with tax. I’m not sure if it comes already unlocked but after updat­ing my firmware to ver­sion 2.2.1 (the newest one) I picked up at local ATT store goPhone card for $20, replaced the one that comes with the iPhone and that was it. It works like it should with no prob­lems what­so­ever. I didn’t have to unlock it. (although if I did I could prob­a­bly use t-mobile goPhone card with it)… If I put $100 on my goPhone SIM card it’ll be valid for a whole year or 1000 min­utes. This works for me sine I don’t make that many calls. So it looks like the full price unit comes unlocked.

  41. goju2525
    Posted April 22, 2009 at 1:05 pm | Permalink

    you are soooooooooooooo cheap its dis­gust­ing one of the best iPhone capa­bil­i­ties is its Edge/3G inter­net ser­vice and you cant use that with the pre­paid card because you’ll be out of min­utes in no time. The so called “solu­tion” that you found is noth­ing more than an overly com­pli­cated process to have a dimwit­ted half func­tion­ing iPhone. All the time and effort that went into this is so that you could have the brag­ging rights to say to you have a hacked iPhone and that you are “stick­ing it to the man”. Well in con­clu­sion I think it is safe to say that you sir have wasted your time and con­se­quently mine see­ing as how there was no way that I could read such a stu­pid blog and not have some­thing to say about it. ^_^

  42. Posted April 22, 2009 at 1:19 pm | Permalink

    GoPhown sounds bet­ter than GoPwn

  43. Posted April 22, 2009 at 1:31 pm | Permalink

    @goju2525 You’re some­what right about the com­pli­ca­tion this entails. This is after all not a fea­ture intended for the phone, just a bonus for those will­ing enough to go the extra mile to have (imho) the best phone money can buy. I’m not going to defend my rea­son­ing for being cheap and not want­ing to sign a 2yr con­tract and I’m sure you’re not even going to read this response. For those other read­ers that are won­der­ing about how the 100mb data pack­age works on this plan; I am now approach­ing my expi­ra­tion date for the 30 day limit and I still have 45mb left to use. I reg­u­larly used the phone out­side of WIFI net­works when­ever I needed it. Albeit, I’m not the most fre­quent phone user, but I checked my mail, looked up maps and watched the occa­sional video. I would be curi­ous to see the sta­tis­ti­cal data refer­ring to the aver­age monthly data usage of iPhone users and find out how often one even uses over 100mb/mo.

  44. Dreary
    Posted April 22, 2009 at 1:48 pm | Permalink

    @ all of those folks say­ing “There’s no bet­ter phone” “why not sug­gest an alter­na­tive”… How about HTC’s Raphael phones. Got one myself, from ATT. Makes the iPhone look like a rock. Easy enough to get free teth­er­ing, and a HUGE selec­tion of avail­able apps… no app store, though… I like using Google, myself.

  45. nemo
    Posted April 22, 2009 at 1:49 pm | Permalink

    hey has any­one tried this on the 3g one?
    and know where i can buy either 2g or 3g haha
    i really want to try this out.

  46. John Davis
    Posted April 22, 2009 at 3:12 pm | Permalink

    Wow, $23 a month? I like it!

    RT
    http://www.privacy.pro.tc

  47. Posted April 22, 2009 at 3:55 pm | Permalink

    The iPhone is FAR from the “worlds best phone.” In fact, it’s a piece of shit. Look at my site and just com­pare it to any other phone. The iPhone is a COMPLETE rip off com­pares to Black­berry, Android, or Win­dows Mobile devices.

  48. Andrew
    Posted April 22, 2009 at 3:59 pm | Permalink

    This might make sense for a cheap sec­ond­hand iPhone, but it doesn’t make sense for a new unlocked 3G iPhone. With GoPhone you are required you to refresh your min­utes once a quar­ter, or buy a one-year card for $100. It sounds like low usage is 50MB/month, so you need to spend $20/two months on data.

    $20/2 months data, $100/year GoPhone charges, $760 unlocked iPhone = $1,200 over two years. $65/month plan, $200 sub­si­dized iPhone = $1,760. So you pay $23/month less in exchange for a band­width limit, no SMS, no visual voice­mail, and assum­ing you never exceed call usage on your plan.

  49. Posted April 22, 2009 at 4:05 pm | Permalink

    You’ll need to replen­ish the GoPhone acc’t in order keep the card work­ing. Oth­er­wise, AT

  50. Not caring
    Posted April 22, 2009 at 4:08 pm | Permalink

    Let’s see… In Fin­land, daily exchange rate from the inter­net:
    $0 for montly fees
    $12.7 for monthly (no other lim­its) data for 384Kbps
    $44.8 for montly (no other lim­its) data for upto 5Mbps
    (made calls some frac­tion of a cent per minute, received calls free)

    Oh yeah, you can change oper­a­tors when­ever you like or the phone you like (ofcourse, you need to buy a new phone at those “exor­bi­tant” rates amer­i­can press quotes for new phones… peanuts com­pared to dif­fer­ences in monthly price here).

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