Unlimited Talk, Text, and 3G Wireless for Twenty Bucks? What’s the Catch?

This just in: new wireless carrier Republic Wireless will launch a $20 “all-you-can-eat” unlimited plan on November 8.

How are they undercutting on price? Instead of being purely wireless, they’ll use Android-powered handsets that use WiFi networks when available instead of cell networks. Some providers have experimented with such solutions before (T-Mobile and AT&T come to mind), but this is the first company to design a business model around it.

When not piggybacking on someone’s router, callers will use spectrum licensed from Sprint, placing Republic in the same pool of MVNO (Mobile Virtual Network Operator) mainstays as Virgin Mobile and Boost (as well as the smaller, more political Credo Wireless).

It’s the WiFi solution (and of course, price) that piques our interest. I’ve often wondered about the feasibility of simply using Google Voice and WiFi. This is better than that, with the safety net of a reliable network to fall back on. No news yet on what Wireless handsets will be offered or if you could bring over existing Sprint handsets (for example, an old Samsung Epic 4G that a writer has sitting in a drawer or a Palm Pre). Will you be able to use semi-public networks like those at a Starbucks?

Stay tuned for more news, and we’ll keep you posted.