Home » Maximising Wireless Profit Program » 2005 » Fixed-Mobile Convergence » BT Fusion Case StudyDecember 2005 (28 pages)
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.
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| 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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