BT Returns To Consumer Mobile With ‘Aggressively Priced’ 4G Offers

BT has made its long-awaited return to the consumer mobile market, offering a range of discounted 4G tariffs to its broadband customers using a Mobile Virtual Network Operator (MVNO) on the EE network it has agreed a deal to purchase.

The price plans are offered on a SIM-only basis, although a 4G-enabled handset can be purchased from the company, and any BT broadband customer can get up to five discounted tariffs on the same bill. Non-BT customers can also get the service, although it will cost £5 more a month.

The cheapest deal is £5 a month for 500MB of data, unlimited texts and 200 minutes of calls and the most expensive is £20 for 20GB of data, unlimited texts and minutes. All allow users to access the BT sport application and the five million hotspots that make up the BT Wi-Fi network.

BT Mobile

John Petter, director of BT consumer, said: “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. We are offering 4G on the UK’s biggest network along with unlimited access to the most extensive Wi-Fi coverage via our 5m BT Wi-Fi hotspot network.

“Our customers are consuming increasing amounts of data and they want the best possible connection wherever they are. It’s our ambition to meet this demand by combining the power of our fixed fibre service with Wi-Fi and the convenience of mobile.”

BT has offered business mobile services for some time but has not been a player in the consumer space since it sold O2 to Telefonica in 2005. However it is now looking to provide ‘quad play’ packages of broadband, television, landline and mobile services to customers in order to increase revenue and foster customer loyalty.

The company’s initial plan was to build a hybrid ‘inside out’ network comprising an MVNO, however late last year it emerged the firm was targeting a mobile operator. It pondered regaining O2 before opting for EE in a £12.5bn deal.

First step

Petter said today’s announcement is the first step in BT’s consumer strategy and says it is still committed to pursuing an ‘inside out’ network despite the pending acquisition of EE.

Analysts say that although the new tariffs are aggressively priced, BT’s credentials as a major mobile provider will be more obvious once the EE takeover is completed.

“Ovum does not expect BT’s new consumer mobile proposition to change the UK market – yet,” said Steven Hartley, analyst at Ovum. “We see this more as a statement of strategic intent rather than a major push into mobile.

“BT promised to launch a consumer mobile service before the end of its financial year and, with a week to go, it has hit that target. However, it is a first step on a strategic path that will become much more assured upon the completion of its proposed purchase of EE. The UK is moving to a quad-play market and rivals will need to respond.

“BT’s offers are aggressively priced, reflecting a much more favourable wholesale deal through EE than BT ever managed with Vodafone. However, the main emphasis from BT is on SIM only plans sold to existing BT customers, which will limit the addressable market.

“Given that most 4G handsets in circulation today are still under contract this reduces the pool of potential customers. BT will offer handsets, but these are limited to just four options and do not include ‘hero’ devices such as the iPhone or Samsung S6. It will also sell to non-BT Broadband customers, although much of the promotion and the sales channels proposed will be targeting existing customers.”

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