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BT Dials Up Free Mobile Phone Calls Service

Posted on: Monday, 28 November 2005, 06:00 CST

By Tony Glover - Technology Editor

BT is to take on leading mobile phone operators such as Vodafone and O2 by enabling customers to make free calls on their mobiles.

The service has been under development at BT for the past 18 months. It will be available to customers owning smartphones, the latest devices made by companies such as Nokia and Motorola. The phones use software that routes calls free of charge through local area wireless connections to the internet.

BT is expected to announce details of the service before Christmas and it will available early next year. The calls will be free, but there will be a flat charge to use the network.

In recent years, BTs revenues from fixed-line operations have been hit hard by mobile operators such as Vodafone and O2, which charge high rates for calls, and by free phone services voice over internet protocol or Voip offered by firms such as Skype. BTs new free service aims to meet this challenge.

When contacted by The Business last week, BT said nothing, but the move is seen as inevitable. Vodafone management have been sleepwalking towards an abyss, said Keith Woolcock, an analyst at Westhall Capital, referring to the threat posed by consumers making free or low-cost phone

calls over wireless internet

(wi-fi) and wider radius wireless internet (wi-max) networks.

BTs new service will combine its existing Openzone

wi-fi hotspots with a patchwork of new wi-max networks.

Heading BTs development of the network is former wireless entrepreneur Ryan Jarvis, who sold his Megabeam Networks pan- European wireless internet (wi-fi) network to Swisscom in 2003 before being headhunted by BT.

This week, telecoms company OpenAir launches Avantimobile, a Skype-style service that allows smartphone users to make free calls from wi-fi hotspots in pubs, cafes and hotels. Samsung and Motorola are also to launch wi-max mobiles in the new year that will enable users to make free internet mobile calls when walking down the street in the way they now use the mobile operators high-tariff mobile networks.


Source: Sunday Business; London (UK)

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