Communications News

BT offers small firms mobile convergence

Tags:
Convergence,
BT Fusion

Graeme Wearden ZDNet.co.uk

Published: 07 Feb 2006 16:45 GMT

BT announced on Tuesday that it has finished developing a business version of its converged mobile and fixed phone service.

BT's Fusion product is an attempt to combine the functionality of a mobile and a landline phone. The consumer version, launched last summer, routes voice and data over fixed-line BT broadband networks when the user is at home, but switches seamlessly over to a Vodafone mobile network when they are out and about.

BT has now created a version for small firms which it claims will allow them to cut their mobile phone bills.

With the business version of Fusion, a firm will install a hub in the office that will connect the Fusion phones to the corporate system. When employees use Fusion phones in the office, the call will be routed over the fixed-line broadband network. That, BT claims, will mean lower bills.

"The 27 percent of UK business mobile users on pay-as-you-use (PAYU) contracts stand to make the biggest savings," said BT, citing research from Strategy Analytics which found that one in five mobile phone calls are made in the office. "BT Fusion is cheaper than PAYU business mobile tariffs from all other UK mobile operators. For example, 300 minutes usage a month on BT Fusion would cost £200 less than O2 Business On-Line over 24 months," BT added.

The growth in rival communication methods, such as mobile, Wi-Fi and fixed broadband, has left some IT managers struggling to juggle a string of contracts with different telecoms suppliers. But while Fusion may look like a tempting way of cutting bills and losing one supplier from the list, the product isn't without its critics.

Last week, consumer group Which? claimed that Fusion cost too much, given that its fixed-line calls are made over a broadband connection.

"We are wondering why on earth they are charging landline rates for calls made over the Internet. We would like to see BT pass on the savings from VoIP calls, but they are not doing that with Fusion," said Which? senior researcher Mike Briggs.

Which? also claimed that Fusion phones sometimes defaulted to a mobile network even if they are within reach of the home hub.

The business version of Fusion will cost £12.50 per handset per month, but businesses that sign up before 31 March will pay £6.25 a month per handset for the first three months.

However, the system will only support three simultaneous calls over the broadband network. Other handsets would have to run over the mobile network, even if they are inside the office.

Analysts at Ovum believe that BT may struggle to get businesses to embrace Fusion, even though it is pushing the cost saving.

"Convergence is quite a complex concept and enterprises will need convincing that the potential cost savings are worth the hassle of installation and the risk of being an early adopter," said Pauline Trotter, a principal analyst with the ICT-focused analyst house.