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Broadband FMC case study: does Wi-Fi bring BT differentiation?

October 2010 | 12 pages | ID: B045AB0B360EN

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BT remains the leading fixed broadband service provider in the UK, but (unlike other European incumbents) it is no longer a large mobile player. BT does not see mobile broadband as a direct threat to its fixed broadband service, but it does recognize the threat from mobile players that are able to offer customers a mobile and fixed broadband package. To defend itself, BT launched its own mobile broadband offering, but is now putting a greater focus on its national Wi-Fi network, which boasts more than 1.5 million hotspots. By bundling this feature into its home broadband offering, BT believes it can provide value to its broadband customers outside of the home regardless of which mobile service they use, and thus increase the “stickiness” of its home broadband offering.
Executive summary
In a nutshell
Ovum view
SWOT analysis
UK broadband market overview
BT faces a competitive market
Wireless broadband: a new challenge for BT
BT looks to exploit mobile’s weaknesses
At first BT looked to bundle its own mobile broadband service
New focus on Wi-Fi as a value-add
Exploiting mobile broadband’s weaknesses
How BT believes Wi-Fi can add value
The secret is in making it simple
BT’s strategic drivers
Does Wi-Fi provide a real opportunity?
BT’s service does provide customer value
“Complementary” is the key term
A short-term differentiation?


Figure 1: Historic retail broadband market share
Figure 2: Are consumers willing to cut the broadband cord?
Figure 3: BT’s Wi-Fi mobile phone application
Figure 4: Selected popular Internet applications per device, UK

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