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You can find the current article at its original source at http://www.theguardian.com/business/2015/mar/25/bt-mobile-phone-market-airtime-deals
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BT returns to mobile-phone market with airtime deals | BT returns to mobile-phone market with airtime deals |
(about 4 hours later) | |
BT has returned to the consumer mobile market after a 13-year absence by offering 4G subscriptions with prices starting at a budget £5 a month. | BT has returned to the consumer mobile market after a 13-year absence by offering 4G subscriptions with prices starting at a budget £5 a month. |
Designed as a lure for BT’s broadband service – the group’s main moneyspinner – mobile subscriptions will come at up to half price for BT broadband customers. Mobile customers who do not take broadband will still get access to live premier league matches for free, via the BT Sport app. | Designed as a lure for BT’s broadband service – the group’s main moneyspinner – mobile subscriptions will come at up to half price for BT broadband customers. Mobile customers who do not take broadband will still get access to live premier league matches for free, via the BT Sport app. |
John Petter, chief executive of BT Consumer, said the offering was a thank you to loyal broadband customers. | John Petter, chief executive of BT Consumer, said the offering was a thank you to loyal broadband customers. |
The former state-owned telecoms company, which is in the process of acquiring the EE network for a fully fledged assault on mobile when the £12.5bn deal is completed, is dipping its toe in the market with a limited service offering airtime but no handsets. | The former state-owned telecoms company, which is in the process of acquiring the EE network for a fully fledged assault on mobile when the £12.5bn deal is completed, is dipping its toe in the market with a limited service offering airtime but no handsets. |
BT created its own mobile network called Cellnet, which was rebranded as O2, but the business was spun off in 2002 and is now in the process of being acquired by Hong Kong conglomerate Hutchison Whampoa. | BT created its own mobile network called Cellnet, which was rebranded as O2, but the business was spun off in 2002 and is now in the process of being acquired by Hong Kong conglomerate Hutchison Whampoa. |
The new BT service, launched on Wednesday, will run over airtime rented from EE, and will combine mobile airwaves with access to BT’s network of 5m Wi-Fi i hotspots. | The new BT service, launched on Wednesday, will run over airtime rented from EE, and will combine mobile airwaves with access to BT’s network of 5m Wi-Fi i hotspots. |
The company is offering bring your own phone deals by supplying just the sim card, or customers can buy a 4G phone from the BT shop for £99. To tackle bill shock, all of its plans will come with an optional monthly cap. The discounted rates will be offered for up to five devices per household. | The company is offering bring your own phone deals by supplying just the sim card, or customers can buy a 4G phone from the BT shop for £99. To tackle bill shock, all of its plans will come with an optional monthly cap. The discounted rates will be offered for up to five devices per household. |
“Rivals should be threatened by this move and Sky in particular will need to react given how punchy BT’s sim-only deals are,” said Paolo Pescatore of analysis firm CCS Insight. “With this in mind Sky may need to launch mobile a lot sooner.” Pescatore said he expected a low-key launch, building to a bigger marketing assault on the mobile market over the summer. | “Rivals should be threatened by this move and Sky in particular will need to react given how punchy BT’s sim-only deals are,” said Paolo Pescatore of analysis firm CCS Insight. “With this in mind Sky may need to launch mobile a lot sooner.” Pescatore said he expected a low-key launch, building to a bigger marketing assault on the mobile market over the summer. |
Virgin and TalkTalk offer deals at similar prices, but with a slower 3G data connection. Ernetst Doku of price comparer uswitch.com, said: | |
“Existing customers get a deal that plants BT firmly ahead of TalkTalk and Virgin...In a time of hand-me-down smartphones, BT’s plans are perfectly poised to become a disruptive part of its consumer strategy - and that’s before the EE acquisition comes into the equation. ” | |
BT is fighting to stop broadband customers being lured away by Virgin, Sky and TalkTalk. Its has already retaliated against Sky with a foray into football, spending billions on Premier League and Champions League matches and a brand new broadcasting studio in east London. After content, mobile is the second major element of its strategy to hold onto customers. | BT is fighting to stop broadband customers being lured away by Virgin, Sky and TalkTalk. Its has already retaliated against Sky with a foray into football, spending billions on Premier League and Champions League matches and a brand new broadcasting studio in east London. After content, mobile is the second major element of its strategy to hold onto customers. |
Petter said: “Offering BT customers the UK’s best value 4G data deal is a great way to start our journey towards re-establishing ourselves as a major player in consumer mobile.” | Petter said: “Offering BT customers the UK’s best value 4G data deal is a great way to start our journey towards re-establishing ourselves as a major player in consumer mobile.” |
“Our customers are consuming increasing amounts of data and they want the best possible connection wherever they are. It’s our ambition to meet this demand by combining the power of our fixed fibre service with wi-fi and the convenience of mobile.” | “Our customers are consuming increasing amounts of data and they want the best possible connection wherever they are. It’s our ambition to meet this demand by combining the power of our fixed fibre service with wi-fi and the convenience of mobile.” |
The cheapest offer is for 500mb of 4G data, unlimited texts and 200 minutes for £5 a month for those who take BT broadband, £10 a month for those who do not. | The cheapest offer is for 500mb of 4G data, unlimited texts and 200 minutes for £5 a month for those who take BT broadband, £10 a month for those who do not. |