BT Fusion Case Study
2005.12.12   |   28 pages   |   Fixed-Mobile Convergence   |   Selling to & Supporting Business Users

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BT has launched a revolutionary service - claimed to be the first truly converged service available to consumer customers in the world.

BT Fusion is a product that allows customers to use their mobile phone at home and pay for the call as if they had used their BT landline phone. To achieve this, the service utilises a Bluetooth connection between a specialised mobile phone and a BT-provided base station, which uses Voice over IP (VoIP) technology to transmit the call through the customer's BT broadband connection.

Is the market ready for such a service? Is Fusion ready for the market? Will Fusion provide a route for BT to regain a significant presence in the UK mobile market? These and other questions are examined in this in-depth case study of an innovative product launched into a competitive market.

Keywords: pricing, competitive, future, proposition, broadband, landline, usage, innovative, ready, technology, line, bt, fusion, revolutionary, voip, fixed, swot, developments, mobile, success, market,

1 Overview 1
2 Introduction 2
3 The Market Opportunity 3
3.1 VoIP Market Potential 3
3.2 Converged Service Potential 4
4 BT Background and History 5
4.1 BT's Mobile Background 5
4.2 BT and VoIP 6
4.3 The 21st Century Network Initiative 7
5 Fusion Description 8
5.1 Project Bluephone 8
5.2 The Fusion Proposition 9
5.2.1 Fusion Availability 9
5.2.2 What the Customer Sees 9
5.2.3 Service Pricing 11
5.2.4 Usage and Costs 12
5.2.5 Future Developments 15
5.3 Fusion Market Potential 15
5.3.1 Available Market 15
5.3.2 Success in Addressing the Available Market 18
6 Fusion SWOT Analysis 20
6.1 Summary 20
6.2 Strengths 20
6.2.1 Customer Cost Savings 20
6.2.2 Simplified CPE 21
6.2.3 Simple to Use 21
6.2.4 Low Entry Barriers 21
6.3 Weaknesses 22
6.3.1 Dependence on BT Broadband 22
6.3.2 Limited Mobile Options 22
6.3.3 Small Base to Build From 22
6.3.4 Bluetooth Rather than WiFi 23
6.4 Opportunities 23
6.4.1 Lock in Existing Customers and Win Back Ex-Customers 23
6.4.2 Grow MVNO Operations 23
6.4.3 Improve Broadband Share 24
6.5 Threats 24
6.5.1 Skype-based Competition 24
6.5.2 NTL/Virgin Merger 24
6.5.3 Unproven Savings Potential 25
6.5.4 Low Customer Awareness 25
7 Conclusions and Implications 26
7.1 Fusion's Importance to BT 26
7.2 Is Fusion Ready? 27
7.3 Will Fusion Succeed? 27
7.4 Actions Required 27

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