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Home>Hot News
| 02/07/2009 | BT stops marketing of Fusion |
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| BT Group has stopped marketing its mobile phone service Fusion and is working on a radical new mobile strategy to target consumers. More news on media, technology and telecoms....By Telegraph BT Group has stopped marketing its mobile phone service Fusion and is working on a radical new mobile strategy to target consumers. More news on media, technology and telecoms The launch of Fusion was meant to spearhead BT.s re-entry to mobile after the 2001 demerger of Cellnet, later O2. It has proved a spectacular flop. In summer 2005, BT predicted Fusion would generate most of an expected £1bn of revenue from new mobile and convergence services within five years. It anticipated "millions" of customers would join. But to date just 45,000 people have signed up and BT has stopped advertising the offer to consumers. It is continuing some marketing to the business sector. Fusion handsets can be used to make cheap or free calls wirelessly at home over BT broadband, and switch to the Vodafone network or BT.s wi-fi hotspots outside. The former monopoly is now trialling a service that would allow heavy users of BT broadband to access the web on the move using BlackBerry-type devices made by Taiwan.s HTC. The service uses the same technology as Fusion. Ben Wood, analyst at CCS Insight, said: "Not only are BT feeling the pressure from mobile companies on voice calls, they now face the prospect of mobile operators aggressively targeting broadband users with high-speed mobile modems. And one of the main reasons many BT customers have kept a fixed line at home to date is broadband." BT unveils third-quarter results tomorrow. Its shares have fallen from 320p a year ago to 256.25p, down 5.75 yesterday, amid fears about pensions, wholesale revenues and margins at its global services unit. |
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