BT dips toe back into Britain's consumer mobile market
LONDON (Reuters) - BT took a first step back into the consumer mobile market on Wednesday while it awaits a decision from regulators on its deal to buy EE, the country's biggest mobile operator.
BT will use EE's network to offer its new mobile service, as part of a plan which it had been working on prior to the acquisition deal. Further details of its new mobile strategy would be provided after it absorbed EE, BT said.
Britain's biggest fixed line and broadband provider hopes to win approval for its 12.5 billion pounds ($18.6 billion) acquisition of EE before the end of its financial year on March 31, 2016. It agreed the deal with EE's owners Orange and Deutsche Telekom last month.
As a stop-gap, BT said it was launching a SIM-only deal - giving subscribers calls, texts and data but no handset - with the best offers reserved for existing broadband customers, starting from 5 pounds ($7) per month.
BT's rivals, wary of the group's potential dominance, particularly in providing the infrastructure that mobile operators rely on, have called on regulators to intervene in the deal.
BT has been absent from the consumer mobile services industry for 13 years. It had owned mobile operator O2 before it was demerged via a share flotation in 2001.
"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," John Petter, chief executive of BT consumer, said in a statement on Wednesday.
BT's new mobile offer comes at a time of change Britain's communications industry. As well as consolidation, there is a trend for major providers to position themselves to offer a package of services including fixed and mobile calls, broadband and entertainment.
Spain's Telefonica said on Tuesday it had finalised a deal to sell its British mobile business O2 to Li Ka-shing's Hutchison Whampoa for 10.25 billion pounds. Separately, dominant pay-TV group Sky is planning to launch a mobile service through a deal with O2.
BT said that its new mobile customers will also get access to BT Sport, a television channel which shows some of Britain's premier league football matches, through an app. They will also benefit from access to BT's wi-fi hotspots across the country.
"Inclusive access to BT Sport and 5 million Wi-Fi hot spots offers important differentiation in a cutthroat field," said CCS Insight analysts.
"We expect initial low-key marketing to heat up as BT makes a broader assault on the bundled telecom market over the summer."
Shares in BT traded up 0.5 percent at 467.6 pence at 1103 GMT, outperforming Britain's bluechip index which was down 0.1 percent.
(Reporting by Paul Sandle and Sarah Young; editing by Elaine Hardcastle)
