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British Telecom (BT) has finally announced its new consumer fixed-mobile convergent service, Fusion, formerly known as Bluephone. Fusion is the first fully convergent service on one device, with one bill and seamless handover between fixed and mobile networks. Pyramid Research views Fusion as a very basic starting point for the convergent services that are to come.
Pyramid Research senior analyst Svetlana Issaeva comments, “BT is pushing the right buttons with Fusion, but launching with only one network compatible handset model will keep adoption to a minimum in the short-term.” BT must make Fusion more attractive by increasing handset options as segmentation down to the device is imperative in a developed market. BT’s reported plan to offer Fusion on Motorola’s best selling RAZR model will positively impact service uptake. More important to Fusion’s success is BT’s plan to move the service from Bluetooth to WiFi networks and utilize Wi-Fi enabled handsets. Vendors like Nokia, Samsung and Sony Ericsson are expected to bring WiFi handsets to the market in 2006, at which point Issaeva expects BT to increase handset options. The number of models and their availability will directly affect rates of service adoption.
Fusion, in its current state seems more like a proof of concept than a commercial money-maker. Important to BTs success in the convergence space will be their next steps in the enterprise segment and adding TV and video content to their service portfolio.
The full text of this article is available as part of Pyramid Research’s Next Generation Trend Letter. Also, our new report Fixed-Mobile Convergence: Creating Value with Successful Business Models provides in-depth analysis on the topic.
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