This can't be good news for AT&T. A device that let's you get around playing high cell phone charges:
Actually… while this is a cute little toy, and might be embraced by some people who really can't afford much else, it isn't a real challenge to AT&T or other cell phone providers.
But this brings up a very important issue: the real cost of making phone calls is almost nothing. Yes, it does take considerable money to put all the infrastructure in place, but after that, it's just moving bits around for almost free.
So while this particular device isn't a big threat to big telecom, the threat is out there. Someone is really going to come up with a device that is a game changer, or build a satellite or figure out a new kind of cell tower, or something. You can't keep over charging for something that doesn't cost much.
But you can charge a lot for good service. So do the math AT&T. Stop floating plans to charge tiered pricing for data, 30 cents for texting and midnight minutes and other crap on top of your already outrageously high bills. Get your act together on the service front, provide real value for your customers, or wake up one day and find out that a company that only charges $20 a year for phone service has taken over your business.