BT bets on home networks

NEWS BT will start installing networks in the home as part of a smorgasbord of new services to help it deal with the inevitable fall in voice call revenues. Plans are still in an early phase but BT's Consumer division will install simple home networks based on Cat 5 cable and simple routers. Trials will begin in certain wealthy parts of west London early next year. The networks will link home computers with each other, as well as videos, stereos, telephones and other electronic devices. The company is considering using BT's own engineers or working with other companies with experience in the home networking space. Ultimately BT hopes to expand the service to provide complete networks for the home, including the supply of network cards and intelligent routers. BT is also considering selling PCs, probably through a partnership with a high-street vendor. Michael Johnson, BT Retail's new ventures director, said: "The home networks will eventually be wireless, but the difficulty of reliably transmitting video on today's wireless technology means we're not planning to use it in the forthcoming trials." The news came as BT Consumer announced various measures to protect its customer base from the intrusions of rivals like NTL and Telewest. Since the summer, BT's market share has stabilised at around 74 per cent, staunching a consistent decline over the previous months. But this may be more due to the rivals scalling down their marketing efforts. Nonetheless, the BT is hoping to hold on to its customers with a range of measures, including electronic billing and new tariffs.