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Cambridge, MA, July 12, 2005 - 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.
Fixed-Mobile Convergence Market Analysis
Pyramid Research has released a report titled Fixed-Mobile Convergence: Creating Value with Successful Business Models and has an in-depth article on BT’s Fusion in their latest edition of the Next Generation Trend Letter.
About Pyramid Research
Pyramid Research is the growth strategy expert for the global communications, media and technology industries. Founded in 1986, Pyramid provides research and consulting services in over 100 countries - helping clients to go beyond existing boundaries by tracking and exploiting business opportunities worldwide. For more information, visit www.pyramidresearch.com.
Press Contact:
Jared Jost
Pyramid Research
jjost@pyr.com
(617)494-1515
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