US internet service provider Cablevision has unveiled Freewheel, essentially a mobile network that relies exclusively on wi-fi connectivity.

Freewheel offers subscribers unlimited data, calls and texts within the US for $29.95 a month – or $9.95 for existing Cablevision customer – without requiring an annual contract. The downside is that they have to be near one of the ISPs Optimum Wi-fi hotspots, or connected to the internet in their home or office, which will severely limit where subscribers can use their phone.

However, in the New York tristate area, where Freewheel will initially launch, there are already 1.1m Optimum hotspots. Cablevision also points out that 93 per cent of mobile data already goes via wi-fi connections.

When Freewheel launches, it will be compatible with a single device, the Moto G, running a version of Android pre-loaded with apps that enable wi-fi calling and texting. Whether these apps could be carried over to other devices remains to be seen.