BT to re enter mobile phone market

BT is set to launch a range of 4G subscriptions for mobile phone customers.

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By :  ,  Financial Analyst

BT is making a return to the UK's consumer mobile phone market.

The telecommunications giant has unveiled a range of 4G subscriptions in a partnership with EE. Its main target is existing BT broadband customers who will be offered a discounted rate of £5 a month for mobile services. The company is also looking to sweeten the deal by offering access to football games on the subscription.

BT's proposed sim-only 4G deal undercuts all current providers. The package would include 500MB of data allowance as well as 200 minutes of call time, only Three offers a similar bundle for slightly more at £8. EE offers 250MB data allowance and 250 minutes for £9.99 while the top range is Vodafone which has 500MB data allowance and 900 minutes.

Analysts believe that BT's capability of offering Premier League football coverage will be able to lure in a significant amount of customers. BT Mobile contracts will allow users to watch top flight football via an app, even if they are not broadband customers.

Paolo Pescatore, from telecoms consultancy CCS Insight, said: "An entry tariff of £5 a month will grab headlines, but inclusive access to BT Sport and five million Wi-Fi hotspots offers important differentiation in a cut-throat field.

"We expect initial low-key marketing to heat up as BT makes a broader assault on the bundled telecom market over the summer."

The announcement provided a boost to BT's share price which closed 1.04 per cent up on Wednesday (March 25th).

Increased football rights

BT currently holds rights to a selection of Premier League football matches and recently renewed its contract through to the 2018/19 season. It means that it now screens English, Italian, German and French top flight matches and from next season will have full rights to the Champions League and Europa League competitions.

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