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« Cisco's A/G Comes to Europe | Main | Russian Library Gets Wi-Fi »

June 17, 2005

Bluephone Faces Challenges

By Nancy Gohring

James Enck at EuroTelcoblog offers a great, in-depth analysis of the BT Fusion launch: While the service initially will use Bluetooth, in the near future it will be based on Wi-Fi. There are a couple of great tidbits here. One is a potential loophole that Enck caught. Customers pay less when using the phone in their house. But the billing handoff doesn’t happen automatically. So users get billed according to where the call originates. Callers can initiate calls in their homes but then leave the house, continuing to be billed the house rate. This probably won’t make a huge difference to BT, but it is a bit like leaving money on the table.

Also, when you add it up, this really isn’t a particularly great deal, mainly because customers are essentially paying twice to use a phone at home. Since BT doesn’t offer naked DSL, customers pay a monthly fee for voice, a DSL subscription PLUS the subscription for BT Fusion. This amounts to 43.50 per month.

Enck also includes an interesting analysis of what he thinks is the potential customer base for the service, and in his estimation it isn’t very significant.

Posted by nancyg at June 17, 2005 2:52 PM

Categories: Cellular Convergence

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