By Jo Best, 15 June 2005 15:55
NEWS After months of speculation, BT has finally launched its all-in-one Wi-Fi, Bluetooth and mobile device today. The gadget formerly known as 'project Bluephone' is now available and will be making its way into the homes of BT customers under the brand BT Fusion.
Fusion is aiming to be all services to all men: with one device, fusion customers can make mobile calls and fixed line calls, routed through a BT-provided and branded router and over a broadband connection.
According to BT, the router - or BT Hub - will also act as a wireless network for Fusion customers, and can support three 'Bluephones' simultaneously. Both the hub and the handset are free.
When out and about, mobile calls will be made over the GSM network and, BT claims, "seamlessly" handed over via Bluetooth to the fixed line when a user returns within range of the router.
BT Retail's CEO Ian Livingstone said the range will be some 25 metres within the home or 100 metres "without any walls". "Range doesn't seem to be an issue at all," he added.
Tariffs, however, do. While BT claims customers can save themselves eyebrow-raising figures by using Fusion compared to some other mobile bundles - up to 95 per cent on some off-peak calls - users will, however, incur mobile termination rates every time a GSM-IP handover is made; 0800 numbers will always incur costs even if made over the 'landline'; and the mobile minutes bundle of 100 inclusive minutes is regarded as a little stingy by some.
Carrie Pawsey, wireless analyst at research firm Ovum, said: "The problem is once you go outside the bundle. One hundred minutes isn't much and 30p per minute is a bit on the high side - it's even on the high side of pre-paid."
Pawsey added, however, that industry fears over the handset had not been realised. "We were pleasantly surprised on the handset... we had horror visions of them coming to market with a brick."
To start with, the service will launch with just one device - the Motorola V560 - although a Fusion-compatible Motorola RAZR phone will also be out this year, BT Retail's Livingstone promised.
The service will go live with 400 "early adopter" customers, with a full launch and customer push aimed at BT Retail's existing more than 1.5 million broadband customers, scheduled for this September.
Livingstone said he expected the growth curve for Fusion users to follow BT's broadband map. "We will take a steady ramp up just the same as we did with broadband. At the end of decade, there will be literally millions of devices out there," he said.
Michael Carroll, analyst at industry watcher Informa Telecoms and Media, predicted the service is likely to raise more interest with the telecoms industry than UK consumers at present.
"Initially, uptake will be slow - it will be a tough sell," he said. "There's a lot riding on them [BT]... It's a very hot topic at the moment - a lot of carriers and vendors are looking at what BT has done."

Comments
There are 3 comments. Join the discussion
1. Richard
Bluetooth Security?
Researchers claim to have cracked the security of all Bluetooth devices. (Crypto keys recovered simply in 0.06 seconds.)
Will neighbours and passers-by be able to make calls via your Bluetooth router and/or mobile handset; on your phone bill?
2. Mark Hudson
Didn't BT Cellnet already try this a few years ago. They produced an Ericsson handset which was combined GSM/DECT called OnePhone. There's even a silcon.com article about it here
http://networks.silicon.com/mobile/0,39024665,11009419,00.htm
3. William Shaw
I decided to try bt fusion but I wish now I hadn't bothered. I've had nothing but problems with the customer services, billing, technical help. The problems seems to me that the staff concerned have not been properly trained in the fusion setup, nobody seems to speak to each other and when I have a complaint you never get back to the same person and you have to repeat the whole sordid story again they don't seem to bothered.
For example I received my phone and hub in december but as I decided to keep my existing number I had to get a pac code from my previous network which I duly did passed it on and surprise surprise nobody did anything about it but still had the cheek to bill me for december even after they told me I would get a discount.
Another thing was when I first contacted them about the fusion product and gave my details all of a sudden my name had changed to Mr CONTACT and when I enquired to whom they were referring It was pointed out to me that it was indeed myself they then said they COULDN'T change it. I could go on but what's the point you never get to speak to whose in charge anyway.