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Rory Cellan-Jones

BT - back to mobile?

  • Rory Cellan-Jones
  • 7 May 08, 16:13 GMT

In 2001, BT decided to get out of mobile telephony, splitting off its Cellnet division which sailed off into the sunset as O2. Since then the telecoms giant has made a reasonable fist of transforming itself into a major broadband business - but has always seemed to have an unfulfilled yearning to get back into mobile. Its BT Fusion product - a phone that works at home and outside - has failed to make a big impression on domestic customers.

Today it's launched a new product called , with the promise that it will allow its broadband customers to take the internet with them when they leave home. What they're actually selling is a more expensive broadband package that comes with a mobile phone - you've a choice between two models. The phones will give you access to thousands of wi-fi hotspots across Britain and will also let you make calls over the network that BT hires from Vodafone.

But when I pitched up for the launch of this product at the top of London's BT Tower - all decked out with park benches and bus seats to give an impression of the great outdoors - nobody seemed to want to use the words "mobile phone". All the emphasis was on using the devices to read emails or surf the web on the move, rather than make calls.

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And a closer look at the tariffs confirmed that impression - the basic package includes just 50 minutes of calls a month, which will be far too little if this is to be your only phone. BT confirmed that it expects most customers to be using this product as a second device, along with their existing mobile.

So this is really a move by BT into the fast growing world of the mobile internet. As we've seen, mobile operators are now at last seeing explosive growth in the flow of data across their 3g networks as customers use those USB dongles which give you mobile internet access on your laptop. Those operators are even telling customers that mobile broadband could replace their fixed line connection - so BT is taking the fight back to them with its Broadband Anywhere.

And it's also betting that a technology which was all the rage a couple of years ago - wi-fi - can regain the initiative against souped-up 3g networks which now seem to have the initiative. Now for all the talk of thousands of wi-fi hotspots - BT's tie-up with the community wi-fi scheme adds another 82,000 UK locations - we all know that this technology does not deliver a seamless service on the move.

But BT obviously believes that a substantial number of people want just a bit of mobile internet, rather than the more comprehensive experience you get from a 3g dongle. So it's BT versus 3g - the mobile broadband battle just got more interesting.

Darren Waters

Sony boss and your questions

  • Darren Waters
  • 7 May 08, 15:07 GMT

As promised I put a range of your questions to Kaz Hirai, president of Sony Computer Entertainment today. You can read my news story .

On the issue of the in games, he told me that the firm had listened to users and would be introducing it in the future.

He didn't give me a date but I've established from a third-party source that you can expect the arrival of this in the next few months.

I hope that makes a lot of people happy.

On the subject of Europe having different spec PS3s he said time differences between the launch of the PS3 in North America/Japan and Europe had been a factor.

He described the hard drive variations between the territories as "subtle differences"

But he said he would "listen to consumers" when it comes to hard drive capacity.

He told me: "If there's a necessity that we bring a large hard disc drive model here in Europe, or any other market for that matter, then we will look into that."

He pointed out that a 80GB PS3 in Europe was the largest of all territories. Now, I'm not sure about mainland Europe, but is the 80GB model available at all in the UK? I can't find one.

On the subject of the PlayStation Network in Europe being the poor relation of the US store, he said "localised content" caused delays.

He also said that Sony Computer Entertainment Europe recognised "we are getting those comments and feedback from users so its up to us make sure we provide the same kind of content as quickly as possible to European consumers as we do to consumers in North America and Japan".

So those are your key points I put to him. Are you satisfied with the answers?

From my perspective I thought the interview revealed a number of key points, which are in my news story. But to recap:

:Sony is committed to investment in hardware technology
:The company is looking into cloud gaming
:It recognises the failings from the launch period
:It believes it can reclaim its gaming crown from Nintendo.

What do you think?

Maggie Shiels

Microhoo: Is it the chase that counts?

  • Maggie Shiels
  • 7 May 08, 12:43 GMT

You know that feeling of seeing a 'to die for' dress in a shop window that you just have to have? You are convinced it will complete your wardrobe and be a knock out when you put it on. Despite the hideous price tag, you decide what the heck and splash out your hard earned cash.

Hey you deserve it! But come the day, come the hour you go into the shop, try it on, sashay up and down the dressing room and eventually conclude that it isn't really the dream buy you thought it was going to be. You reluctantly leave under a cloud of depression with your money taunting you and burning a hole in your pocket.

Well I think that's how Microsoft's CEO Steve Ballmer is feeling at the moment.

Steve BallmerThere he was gung ho like some Wild Western cowboy who said to Yahoo "I like the cut of your jib and to prove how much I really, really want you here is $47.5 billion." Then when his approaches were not warmly embraced he ponyed up to Jerry Yang and said "I'm going to buy you whether or not you like it."

And despite all his bravado and talk about a hostile takeover, Mr Ballmer turns round and says "You know what Yahoo? I'm just not that into you any more."

Well that's how it seems. There is chatter that he vacillated over the blockbuster buy and at times even said to staff at Microsoft "Hey, shall we just can this thing?"

The talk in the Valley is that Mr Ballmer never really made up his mind about the deal. Apparently the more Yahoo resisted the more he went cold. Usually in the game of love it's the chase that counts!

Steve Ballmer did have an erratic approach to courting Jerry Yang and the Yahoo mob. Sometimes he would be flirty and talk up how the company would be the ideal partner for Microsoft. Then other times he acted like a caveman saying if Yahoo didn't get into bed with Microsoft then he would drag them there. So last century Steve!

But Steve Ballmer isn't the only reason this deal went south.

Jerry YangJerry Yang was sending out all kinds of mixed signals. On the one hand he was all coy and on the other he was saying "Yeah, big guy we can hook up if the price is right." In the end it was all a front. Jerry Yang didn't want to be bought, or should I say, didn't want to be bought by Microsoft.

For many in Silicon Valley, it's a bit like your young hip friend marrying the old bald boring guy down the street. He wants you to pep up his life, and you want him to make you feel warm and secure. Or do you? Are you just toying with him to make another suitor jealous and help boost your stock?

The truth is that in Silicon Valley, Microsoft is the company people slag off, bitch about, moan and make fun of. Yahoo is the one people want to hang out with and go to parties with. They come from two very different cultures.

Meanwhile Steve Ballmer has gone all moody and silent while Jerry Yang has been telling anyone who will listen that it's not his fault the marriage was called of and that life as an independent company is going to be just wonderful from here on in thank you very much.

What of the future though? For Yahoo there are all sorts of hook ups that might come to fruition. From AOL to MySpace and Google.

Meanwhile Steve Ballmer has nearly $50 billion to spend and doesn't seem to know where to spend it. Or does he? Certainly there is one school of thought that as Yahoo's share price plays ping pong and investors turn to lawsuits, Steve Ballmer might just swoop in and pick up the company at a lower price.

And you know even though you thought that dress just didn't cut it at that high price you first saw it for, it's amazing how it recaptures some of its former glow when the 'sale' sign goes on it!

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