[UK] BT launches first fixed-mobile phone

HelterSkelter

Wonder if they'll launch something like this over here...

http://uk.news.yahoo.com/050615/80/fl6a3.html

LONDON (Reuters) - BT Group Plc unveiled on Wednesday its long-awaited cell phone service that switches between fixed and mobile networks in a battle to stem a tide of calls moving from land lines to mobile networks.

BT's new service, branded "BT Fusion", will offer phones made by Motorola , and target consumers with a mobile that will hook onto its fixed-line network when customers are at home or in the office -- but latch automatically onto a wireless network when they are on the move.

"For the first time customers will be able to get the best of both worlds in one service -- combining the convenience and features of a mobile with fixed line prices and quality," said Ian Livingston, head of its main consumer arm, BT Retail.

BT said its pioneering Fusion service would allow customers to make calls to landlines at BT's landline rates of 5.5 pence for up to an hour for off-peak calls, and 3p a minute at peak hours.

The dominant fixed-line telecoms provider said the service, offered in two pricing packages of 9.99 pounds and 14.99 pounds a month, will require customers to have a BT telephone line and a BT Broadband connection.

BT is hoping the mobile phones, which will offer cheap calls over fixed lines, will shore up revenues in the face of a rising threat from a fiercely competitive mobile market.

Analysts said this was aimed at helping BT to reduce customer churn in its fixed-line and Internet businesses.

"If it's very successful and they maintain the requirement of BT Broadband, then maybe there's a chance to enhance customer retention. (But) I suspect they would seek to make the market as wide as possible eventually," said Nomura analyst Chris Alliott.

The former telecoms monopoly is targeting 1.0 billion pounds in annual revenues over five years from mobility and convergence services.

BT said customers signing up for Fusion would get one free handset -- the Motorola v560 -- and a free BT wireless base station, which will also enable the handset to switch to its broadband line using Bluetooth wireless technology.

Bluetooth, a short-range wireless technology that connects mobile devices to wireless headsets or other devices, is seen as an intermediate solution for these so-called converged phones before a move to medium-range wireless technologies such as Wi-Fi and WiMAX.

BT, which plans to use Vodafone Group Plc's mobile network, plans to kick off its Fusion service with 400 customers initially and roll it out more extensively in September.

BT shares were little changed at 222-1/2 pence in early trading, giving the company a market value of around 18.9 billion pounds.