In pursuit of what it styles 'the world's first fully converged fixed-mobile service' UK incumbent BT has now finished putting in place its virtual mobile network for its consumer and business customers. Project Bluephone, BT's device that will use the converged network to connect users at home, in the office or on the move, has also moved forward after completing key technical tests.

BT says that, as a mobile virtual network operator (MVNO), it can not only lay the foundation for convergence but now also offer new customer services. For consumers, these include faster access to the Internet through GPRS and a new conferencing service that connects up to six people on a call. These are the first of a series of enhancements planned over the next 12 months.

The company also reports that further tests of the Project Bluephone handset and service have shown good progress, including successful high-quality voice calls over Bluetooth onto BT’s fixed network. Range tests have exceeded the goal of at least 25 metres, and seamless hand-over has been achieved between Bluetooth and the GSM mobile network during calls. The first base station controllers that manage the broadband access points in a customer’s home or office, and which pick up the Bluetooth signal from the converged handsets, have also been installed.

According to BT the first seamless hand-over between the Bluetooth connection to BT’s fixed network and the GSM mobile network during a call represents a major step towards launching Project Bluephone in the spring, with the new converged handsets developed by Motorola now proven to work across both networks.

"This significant progress demonstrates BT’s continued determination to make our mobility and convergence vision a reality for our customers", says Steve Andrews, BT Group chief of mobility and convergence.

Nor is this BT's first solid FMC achievement. Last November it used mobile virtual network capabilities hosted by Vodafone to launch a range of mobile services for the corporate sector. Included were mobile virtual private network (VPN), business circle (in which the mobile device functions as a switchboard extension) and conference-on-demand services. "BT Mobile will ultimately offer the world’s first, fully-converged fixed-mobile service, seamlessly bringing together the advanced technologies and networks, whether that’s broadband, wireless broadband or 3G" commented Andrews at the time. BT's stated aim is to generate around UK£1bn of annual mobility and convergence revenues in five years.

Eircom seeks mobility
Somewhat behind BT in the FMC universe is Ireland's Eircom. Like BT, though, Eircom exited the mobile business some time ago and is now trying to re-enter it. This is one of the company's current strategic goals (the other two being defence of its core business and broadband growth). The Irish regulator, the Commission for Communications Regulation (ComReg) may help out here.

In December ComReg notified the European Commission of its conclusions following a comprehensive review of the Irish mobile market in which it found Vodafone and O2 to have joint dominance. As part of its notification, ComReg proposed that the networks of Vodafone and O2 should be open to alternative providers such as MVNOs. The EU Commission had the power to veto this notification and could have requested ComReg to withdraw this measure, but in January ComReg received a letter from the European Commission endorsing ComReg’s decision and its proposed remedies in relation to the Irish mobile market. ComReg said it would proceed to implement remedies in order to bring more competition into the market.

Eircom takes this as a positive development. Announcing the company's Q3 results earlier this month, Eircom ceo Dr Philip Nolan remarked: "In mobile, the most significant development in the quarter was the announcement by ComReg of its intention to direct Vodafone and O2 to provide MVNOs on a commercial basis. Failing that, ComReg has said that they will impose specific remedies, including cost orientation. ComReg's initiative has been formally endorsed by the EU Commission. It may take some time for the impact of this decision to become clear".
John Williamson