Organisation: BT

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Analysis and commentary by Echo Research.

The launch of BT's hybrid mobile / landline phone appeared to push all the right buttons for a successful PR launch. The aptly named Fusion was heralded by BT as a world first, offering customers value, convenience and seamless switching between a mobile network and a home-based broadband connection. The 95% savings on mobile to landline calls prompted some useful headlines - "New phone saves cash"(Bristol Evening Post, 16/6) - and positive comment was further underpinned by IT consultancy Ovum, which predicted that the Fusion would change the telecoms landscape. "it's not overstating the case to say that the industry will never be the same again"(Reuters, 15/6).

But further investigation by the Sunday papers and trade press revealed some problems: "The wrong numbers at BT Fusion"(Observer, 19/6); "the technology is impressive, but the economics are unproven"(Sunday Telegraph, 19/6); "BT Fusion fails to match up to the potential of the technology"(zdnet.co.uk. 15/6). Wih tariffs deemed uncompetitive, and an unclear target market, the Fusion was dubbed the "Con-Fusion"(Silicom.com, 16/6) by some commentators. "BT Fusion could cost more than you think"echoed Computer Business Review (16/6). Heralded as a significant income generator for BT, the Fusion's 'con' image is one it can ill-afford.