Home

«May 8, 2009»

BT’s ‘Cheapest Deal in UK’ May Not Be Good for Profits

Ovum, a consulting firm for the telecom industry has warned BT about its latest bundled fixed line and mobile broadband offer, saying that the offer is not a good idea in terms of profits.

The deal in question provides customers 8Mbps broadband at home, a 1GB transfer on mobile broadband, and access to WiFi hotspots – all for £15.65 a month. BT claims that this package is so far the cheapest in the UK market and that it will save customers £125 on each contract in comparison with competing offers from Virgin mobile broadband or Orange.

Steven Hartley, an analyst at Ovum, said that he was concerned about such an offer from BT, because the company does not own a mobile broadband network and uses Vodafone’s network resources in exchange of a large fee.

He acknowledged that BT has a large customer base when it comes to fixed-line connections but in spite of that, the fact remains that BT has to pay the highest fee per Mb amongst mobile broadband providers in the UK. Because of these reasons, BT does not have a good chance of making a profit from this deal, he said. Hartley also confirmed that he had contacted BT with this analysis. The provider, however, maintains that the deal is profitable.

It seems that if you are looking for a broadband package, the intelligent thing to do right now would be to sign up quickly for this deal as it could disappear from the market if Ovum’s predictions are right.

Enjoyed this post? Tell your friends! These icons link to social bookmarking sites where readers can share and discover new web pages.
  • OnlyWire
  • Socialize-It
  • bodytext
  • del.icio.us
  • Furl
  • StumbleUpon
  • Propeller
  • YahooMyWeb
  • Reddit
  • Slashdot
  • Ma.gnolia
  • RawSugar

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.