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Innovation of the Month
 
BT has announced an industry first. Fusion is a new intelligent mobile service that combines fixed and mobile phone services. The really clever feature of the service is that the Motorola v560 handset provided to Fusion customers lets you place calls over BT's fixed-line network when you call from home or in the office, and then mobile calls (using Vodafone's GSM service) when you're out and about - all from the same handset.

The service requires a special access point, dubbed the BT Hub, which is installed in your home or office. The BT Hub then uses Bluetooth wireless technology to switch the handset seamlessly to the broadband line, even in mid-call within a 25 metre range. According to BT, Fusion can offer you huge savings by allowing calls to UK landline numbers to be charged at BT landline rates of 5.5p for up to an hour for all off-peak calls and 3p a minute at peak times.

The BT Home Hub can also be used to wirelessly (802.11b) connect your PCs, games consoles and printers to one another and to a broadband connection, which means no more unsightly wires. You can have up to six handsets connected to BT Fusion, so the whole family can benefit.

BT believes that the new handset and base station will be popular among large families, in which children and parents compete to use the landline, and among small businesses. People living in areas with poor mobile phone reception may also be drawn to the service. 'You're getting the cost of a fixed line, the convenience of a mobile and better coverage,' said Ian Livingston, head of BT's consumer division BT Retail.

The new phone marks an important technical step towards convergence, the point at which mobile and landline phones are completely interchangeable, but there's one big catch - you must sign up to BT Broadband (from £17.99 per month). The service will initially start with around 400 customers and should be widely available in early September.

BT is offering two launch packages - 100 inclusive minutes at £9.99 a month and 200 minutes at £14.99 a month. Inclusive minutes do not include calls made to fixed-line phones from the home. Another Motorola handset, the RAZR, will be launched later in the year. More handsets will follow.


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