Their site is a little optimistic for my taste. Awesome company name, though.

"Phi can capture over the air waves, so with the right app, you can watch cable for free."

Cable != over the air.

"Phi will be able to act as a base station to let you make free calls using your cell phone."

AFAIK this is illegal in the US and even if it was legal the carriers would try pretty hard to block it. I'm up for a good disruption as much as the next HNer, but this sounds more like a long-term aspiration than a product feature.