BT Plans To Re-Enter Mobile Market With 4G Spectrum

BT is set to move back into the mass mobile operator market for the first time since it spun off O2 in 2002, according to chief executive Ian Livingston.

In an interview with The Daily Telegraph, he said the telecommunications company planned to use the spectrum it won in the recent Ofcom 4G spectrum auction to offer a mobile network to existing customers alongside its broadband, television and landline offerings.

BT was a surprise bidder in the auction and won 2.6GHz bandwidth at a cost of £186.5 million. Last month it invited tenders from other mobile operators to form a 4G partnership, but Livingston did not reveal any specific information regarding other operators.

BT 4G network

The company already partners with Vodafone to provide 3G mobile service to business customers, but BT’s latest tender is believed to favour O2 for historical reasons, and the fact that the operator only won 800MHz spectrum in the auction.

Lower bandwidth provides greater range, but not the capacity afforded by the 2.6GHz that BT won, so it has been suggested the two companies are natural partners.

Livingston said any partnership would provide mobile coverage outside the home, but that the new version of the BT Home Hub would improve 4G inside the home, creating a “very cheap 4G network.” BT’s extensive network of Wi-Fi hotspots will also be upgraded with LTE technology.

He said any BT 4G network would provide savings when compared to other LTE operators because most users do not download large amounts of data on the move, but instead do it in places like cafes and airports, where a BT Wi-Fi hotspot was likely to be available.

“We can confirm that we’re exploring various options given the excellent spectrum we have and that we plan to build on our strength in Wi-Fi,” a BT spokesperson told TechWeekEurope. “We’ll say more once we conclude our ITT.”

Last week, BT announced a renewed assault on the television and ‘triple-play’ broadband markets with the announcement that its new BT Sport channels would be free to all BT broadband subscribers as part of its efforts to fend off competition from the likes of Sky and Virgin Media.

What do you know about BT? Find out with our quiz!