Fusion Fixed-Mobile Convergence Needs More Spark, Firm Says

British Telecom (BT) has unveiled its long-awaited consumer fixed-mobile convergent service, Fusion; though analysts at Pyramid Research say it needs to pick up steam before it heats up the market.

Fusion, formerly known as Bluephone, is claimed to be the first fully convergent service on a

"BT is pushing the right buttons with Fusion, but launching with only one network-compatible handset model will keep adoption to a minimum in the short-term," said Pyramid Research senior analyst Svetlana Issaeva in a statement.

Pyramid also asserted that BT must make Fusion more attractive by increasing handset options.

The firm did concede that BT's reported plan to offer Fusion on Motorola's best-selling Razr model will positively impact service uptake but more important to Fusion's success, however, is BT's plan to move the service from Bluetooth to Wi-Fi networks and use Wi-Fi-enabled handsets, Pyramid said.

Vendors like Nokia, Samsung and Sony Ericsson are expected to bring WiFi handsets to the market in 2006, at which point Issaeva expects BT to increase handset options. The number of models and their availability will directly affect rates of service adoption.

BT’s next moves in the enterprise segment and adding TV and video content to its service portfolio will be paramount to its success in the convergence space, Pyramid concluded.