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Rory Cellan-Jones

BT - back to mobile?

  • Rory Cellan-Jones
  • 7 May 08, 16:13 GMT

In 2001, BT decided to get out of mobile telephony, splitting off its Cellnet division which sailed off into the sunset as O2. Since then the telecoms giant has made a reasonable fist of transforming itself into a major broadband business - but has always seemed to have an unfulfilled yearning to get back into mobile. Its BT Fusion product - a phone that works at home and outside - has failed to make a big impression on domestic customers.

Today it's launched a new product called , with the promise that it will allow its broadband customers to take the internet with them when they leave home. What they're actually selling is a more expensive broadband package that comes with a mobile phone - you've a choice between two models. The phones will give you access to thousands of wi-fi hotspots across Britain and will also let you make calls over the network that BT hires from Vodafone.

But when I pitched up for the launch of this product at the top of London's BT Tower - all decked out with park benches and bus seats to give an impression of the great outdoors - nobody seemed to want to use the words "mobile phone". All the emphasis was on using the devices to read emails or surf the web on the move, rather than make calls.

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And a closer look at the tariffs confirmed that impression - the basic package includes just 50 minutes of calls a month, which will be far too little if this is to be your only phone. BT confirmed that it expects most customers to be using this product as a second device, along with their existing mobile.

So this is really a move by BT into the fast growing world of the mobile internet. As we've seen, mobile operators are now at last seeing explosive growth in the flow of data across their 3g networks as customers use those USB dongles which give you mobile internet access on your laptop. Those operators are even telling customers that mobile broadband could replace their fixed line connection - so BT is taking the fight back to them with its Broadband Anywhere.

And it's also betting that a technology which was all the rage a couple of years ago - wi-fi - can regain the initiative against souped-up 3g networks which now seem to have the initiative. Now for all the talk of thousands of wi-fi hotspots - BT's tie-up with the community wi-fi scheme adds another 82,000 UK locations - we all know that this technology does not deliver a seamless service on the move.

But BT obviously believes that a substantial number of people want just a bit of mobile internet, rather than the more comprehensive experience you get from a 3g dongle. So it's BT versus 3g - the mobile broadband battle just got more interesting.

Comments

  • Comment number 1.

    Do BT honestly expect us to carry around *another* device in our pocket, rather than just have internet on our mobile phone already?

    What a waste of time...

  • Comment number 2.

    For me Rory, it's too little too late.

    I think had BT launched this 18 or 24 months ago, it might have stood a chance, but 3g finally seems to have found its niche.

    I may be wrong (I was convinced Microsoft would buy Yahoo a few days ago) - but it seems like BT have missed the boat.


    Jim Connolly

  • Comment number 3.

    As a BT shareholder I'm worried. This reminds me of those old mobile phone hotspots.

    I want one device and I want it to work everywhere. And I'm willing to pay.

  • Comment number 4.

    I am also a BT shareholder and I can remember when Orange suggested I would no longer need a fixed line with their great tariffs. Well I still have that!

    Also I have to say that in my experience the 3g network coverage isn't nearly as comprehensive (or as fast - sometimes) as they would like you to think. 3g unlimited data plans are also subject to reasonable usage, or quotas which may you may breach if you use data intensive services such as the 91热爆 iPlayer.

    But I have to agree convergence is the key here and with a device like the Sony Ericsson P1i I could hop onto free wireless hot spots anyway. I think they should launch a 3g enabled version of the Fusion at a good price point with some decent handsets. Then I may move back to BT broadband - although it did take me ages to get away from them not so long ago!

  • Comment number 5.

    I'm not at all convinced this can fly. It's been my experience over 6-7 years of use that Wi-Fi is a very unreliable technology - even at home. Sometimes it works, sometimes not and even when it's available, the bandwidth you actually get fluctuates enormously. So, I regard anything wireless with some scepticism. Many public wireless access points (even at major locations like Paddington Station etc etc) seem to have more time "off" than Rip Van Winkle's bedlight! So, for me, this BT initiative is unattractive.

    However, I have invested in a 3G card for my laptop (Vodafone since you ask, and no I don't work for them or own shares!) and although the coverage is still a bit patchy when travelling (despite the 98% coverage claimed by Voda), by and large it works well and when it is available, the bandwidth is not bad. Also, due to some labyrinthine special offer sign up deal the acquisition of this 3G card cost me 拢00.00. Of course, I have yet to see my 1st 3G bill.....

  • Comment number 6.

    Seems a crazy choice given the imminent arrival of a 3g iPhone.

  • Comment number 7.

    It seems to me to be similar to be the old idea of phone boxes, in that, if you need to use the service, you have to hunt around for an access point. Maybe there are more wi-fi points than phone boxes now, but having got used to the convenience of having network access in my pocket, anything short of that will just not be good enough.

  • Comment number 8.

    I am no expert in 3g or wifi, but recently acquired the BT anywhere device.

    Contrary to most (if not all!) I find it pretty, good actually, you have the option to use it has an intrenet phone (unlimited) or mobile, text, email etc.

    You can access the internet via the mobile network so you are not tied to wifi hotspots (I do not know if this is 3g or 'older' technology). Both seem to be reasonable speed if you don't log on to large sites (91热爆 mobile site is very speedy)

    It has bluetooth and computer sync (or sdomething like that), and I like it thus far! All for an extra fiver!

  • Comment number 9.

    A mate of mine has just gone mobile with Orange and he cant sing it praises high enough. I am happy with a wireless connection at home and access when i need it via the FON service which isnt very often.
    I cant see it taking off at all. BT would be better off sticking to home phones, home Broadband and vision.

  • Comment number 10.

    This new BT wireless hybrid service sounds to me like a total dog's breakfast. Probably the result of some 'expert' management consultants trying to appeal to every single market but satisfying none.

    It seems to me that BT are always trying to appeal to a middle ground and miss out on alot of customers who are more tech savvy or just need a basic service.

    I'm very happy with my home Wifi and my Three mobile broadband connection. Why would this offer tempt me to come back to BT?


  • Comment number 11.

    What a crazy idea!!!! I carry enough around in my everyday life...the need to carry two phones seems absurd.

    BT seems out of touch, out of date, out of ideas!

  • Comment number 12.

    I have been using this device for two weeks now. The browser is significantly better than my BlackBerry and I can make free calls from home and over WiFi using the Broadband Talk. All in all a tidy little machine.

    Admittedly the SMS allowance is on the stingy side but as smartphones become more mainstream it really won't matter because we will all be using email instead.

    This is a great product. Just try and name one other operator that is giving out smartphones for 拢5 p/month which also provides a second phone for the house, mp3 player, camera, camcorder, mobile browsing, free minutes, free texts, free wifi, digital storage and unlimited storage email. There isn't one!

  • Comment number 13.

    sorry but this mobile internet thing is not as good as a solid hard connection at home, as the data transfer rates are too slow to be of any use, it's like going from super fast BroadBand back down to the old 8k and 14k modems.

    wifi only works best when the devices are quite close to the wireless transmitter.

    but before BT start bringing out another product they should be sorting out their fixed line services and provide what the likes of cable provide (eg 20MB broadband) as just about everyone who lives in a non cabled area has to use a BT for ADSL.

  • Comment number 14.

    Last time I looked, it was easy to d/l a VOIP app. to my wi-fi/3.5G Nokia mobi.

    Collapse of BT proposition...

  • Comment number 15.

    BT seems to want to steal business from other operators in every market, whether it is installing structured cabling in offices, providing I.T. support to Businesses, or inventing new Mobile devices.

    Meanwhile, our communications infrastructure, over which BT has for decades enjoyed a virtual monopoly of development and care, languishes in the dark ages compared to mainland Europe, limited to a third of the Broadband speed they enjoy even in rural France.

    BT needs to stop interfering in other people's areas of expertise, to get on with the core business - spend time, effort, and money on getting our infrastructure up to date instead of dabbling in new markets that are already well looked after.

  • Comment number 16.

    Great - now when Phorm is introduced they can not only monitor what we browse BUT know where we are!!!

  • Comment number 17.

    BT appears to me to be one of the few service prviders that are willing to attempt to inovate,I have found wifi phones far better way of commicating both at home and at work

    Although the service will not appeal to all users, and there is a business version for companies this will allow'heavy' internet users true mobility,and 'real' access to the web not just wap like majority of mobiles

    Although 3g appears to be the alterative, you still need the signal, wireless mobile gives better accessbility, and eliminates the need to stand at the backdoor to ensure you get reception

    With BTs openzones and FON, and other providers like Cloud etc this should provide good coverage

 

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