BT considering to re-offer mobile phone servicesBT in discussion with T-Mobile and 3

26 January 2009

BT Cellnet

BT Cellnet was demerged in 2001

BT has held discussions with T-Mobile and 3, to discuss BT's potential re-entry into the mobile phone service arena.

It has been reported on the Guardian's website, that 'investors have been critical of BT's failure to reap significant benefits from the mobile revolution and analysts say the share price has suffered as a result'.

BT Cellnet was demerged in 2001, and since then shareholders have been 'unsettled' by BT's lack of mobile operation, according to the Guardian. The report claims that analysts believe BT's broadband market share is being encroached by dongles being offered mobile operators, and that BT needs to guard itself against these 'competitive incursions'.

Dongles - portable modems

Research in our recent mobile broadband review suggests that mobile broadband from service providers 3, O2, Orange, T-Mobile, Virgin Media and Vodafone has a long way to go before competing with fixed-line services. Etienne Beardmore, senior business researcher at Which? said: 'With comparatively lower download speeds, usage limits and higher monthly costs, mobile broadband isn't set to take over from fixed-line services just yet, however with new developments, such as the 4G network currently being trialed, people may become more inclined to switch in the future'.

BT attempted to re-enter the mobile phone service arena in 2005, with the introduction of BT Fusion. The joint venture, with Vodafone, struggled to attract the number of customers hoped and was eventually abandoned - although support is still offered to existing BT Fusion customers.

To find out more about mobile broadband read our mobile broadband providers review, featuring 52 packages from six providers. Alternatively, you might want to check out our fixed-line broadband report, to help you find the best broadband service provider.

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