Return to mobile communications being considered by BT

Telecoms service provider BT looks to be returning to the mobile network sector with discussions currently ongoing between BT and two other major mobile telecom providers with regards to 3G services in the UK.

It is understood that there are currently plans underway for the UKs dominant telecoms provider BT to return to the world of mobile communications services. In 2001 the telco dropped its own mobile network called Cellnet, which is now known as O2, and in recent years has set its sights on wireless networking services.

The introduction by BT of Fusion, which was an FMC (Fixed Mobile Convergence) Under an MVNO (Mobile Virtual Network Operator) partnership with Vodafone, was made back in 2005 and unfortunately failed in its attempt to find a substantial customer base.

The carrier has recently been in talks with both T-Mobile UK and 3UK, which operate under a joint partnership allow them joint access to the 3G network, according to recent reports from industry watchers. The most likely possibility is that BT will make a deal with these telco’s to provide a range of 3G services, like mobile broadband services, using this jointly owned network.

European telecoms analyst and sector strategist at Daiwa Securities, Michael Kovacocy said “Where there is smoke there is fire,” He added “We are already expecting an aggressive entry by BT into the consumer mobile broadband market shortly. Getting serious about mobile – at a time when mobile operators look increasingly likely to open up their networks in order to drive incremental revenue in a mature market, future-proof against adverse regulatory trends and perhaps most importantly of all strip costs out of their core network and delivery system by integration of fixed and mobile assets – looks like a good move by BT.”