LONDON-British Telecom plc launched its BT Fusion fixed-mobile convergence service offering, which uses Bluetooth technology to switch seamlessly between the company’s wide-area wireless network and its in-home BT Broadband service.
The service, which was originally knows as Bluephone, relies on its BT Hub for in-home access that integrates Bluetooth technology and doubles as a Wi-Fi router, allowing customers to access to both voice and data service using BT’s ADSL network. The BT Hub is also expected to provide superior in-building coverage compared with traditional wide-area cellular networks.
BT does not own a wireless network, but resells service from Vodafone Group plc.
Customers can access the voice service using Motorola Inc.’s V560 handset, which is provided free, though BT said it plans to add Motorola’s RAZR handsets later this year.
Initial wide-area service offerings will include BT Fusion 100, which includes 100 calling minutes for $18.22 per month, or the BT Fusion 200 package, which includes 200 calling minutes for $27.33 per month. Calls from within the home to U.K. landline phones will be charged at BT’s landline rate of 10 cents for up to an hour during evenings and weekends and 5.5 cents per minute for daytime calls. All other calls made in the home and calls made from the wide-area network will be charged at normal mobile rates.
BT Fusion customers will also be required to sign up for the company’s broadband service at $32.79 per month and a BT Line service for $19.14 per month. Secondary phone lines will be charged an additional $18.22 per month.
“The cornerstone of this strategy is BT Broadband, which can be wirelessly enabled to link up everything from your laptop, PC, games console to your home security system and now your mobile,” noted Ian Livingston, BT’s chief executive officer of retail.
BT said it planned to roll out the service to approximately 400 “early adopter customers,” with wide-scale deployment and availability in September.
Analysts were enthused by the service, noting it was one of the first commercial launches of a fixed-mobile convergence offering.
“This is big news,” noted research firm Ovum in a report. “Many have spoken about FMC over the years, but BT is the first to offer a true FMC service. It is not overstating the case to say that the industry will never be the same again.”
Others noted that the service could provide a boost for BT’s bottom line.
“There is a distinct opportunity here for BT’s Bluephone to start making some serious contributions to BT’s financial performance,” explained Allied Business Intelligence European research director Jake Saunders.
Several U.S.-based operators have announced similar initiatives to combine their wireline and wireless offerings using Wi-Fi and Voice over Internet Protocol technology. Cingular Wireless L.L.C. and Verizon Wireless are seen as the most likely candidates to launch a U.S. FMC service that would take advantage of their strong wireless and wireline networks.
