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In other words, they make you pay $10/month for the privilege of NOT carrying your calls. Nice feature, but what a burp rip-off.

Actually, If you could deal with either of the two phones being offered, which have limited feature sets IMHO, this is a good deal for someone who spends a lot of time in WiFi covered locations.

LJW, it still costs them to install the network-WiFi protocols and maintain the servers required for the IP routing. Granted, $10 a month is too much, but most customers will still come ahead. Most people who would sign up for this would be the ones that have broadband at home(a big share of calls), and sometimes at work. When all those calls are free, you can step down to a lower plan.
I for one, commend T-Mobile while all the 'tards are drooling over the ridiculously overpriced iCrap.

Is it gonna work if I only have wifi hot spot, and T-mobile GSM network is not available? I mean, can I use it overseas?

http://www.nytimes.com/2007/07/05/technology/circuits/05pogue.html?pagewanted=1&ei=5087%0A&em&en=ed45171b37d864a8&ex=1183867200

yes, you can use it overseas. I'm sure there's a way they can tell where you are based on the IP but they haven't implemented that, so as long as you have wireless internet you can use it like you would in the US. So this is pretty badass for international travellers. I'm really excited for this. From some early reviews it sounds like they still have some kinks in the service especially during the transition but I'm hoping they iron those out soon.

I don't think that they will be blocking any countries based on IP address. Take a look at VoIP providers, like vonage - they don't bother, I know vonage works fine worldwide.

Tried it out and it really isn't ready for the public. Seems like they released a beta product that still needs many bugs worked out. Hand off is not smooth between GSM and WiFi. It asks right on the phone to update your address for where you are using wifi (I'm guessing for some sort of e911). Returned it after 4 days and hard workerto my N80. My personal opinion - stick with the N or E series Nokias and get a separate VoIP provider. I have Truphone and Gizmo and love them both. Truphone gives a free number (although you can't choose it) - but that is more than offset by the fact you get free calls to landlines in 40 or so countries. I only pay when I call international mobile numbers (and the rates are reasonable). Both work pretty much anywhere you get a wifi signal.

This is just another attempt to lock people in to one (overpriced) service. Spend a little extra money and buy an unlocked phone and skip the contract - it will pay off in the long run. With so many cheap and reliable VoIP providers and so many great handsets on the market - why go with one of T-Mobile's stripped down and locked handsets? Just my 2 cents.

It says "T-Mobile HotSpots included". Can I use my laptop and lock on the Wifi system at all the Starbuck locations (most airports). It is a $20 option for T-mobile users. I travel a lot and most airport these days don't provide free wifi at the airport.