Qualcomm Inc (QCOM)

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Rivals BT and Vodafone agree partnership deal
Wed 19 May 2004

BRITISH Telecom has teamed up with arch-rival Vodafone to unveil the future of telecommunications technology in a deal expected to bring the partners more than £1 billion over the next five years.

As part of a move to ensure that it will not lose customers to its competitors, BT said it planned to launch a combined fixed and mobile phone, dubbed "Project Bluephone", before the end of the year.

The technology removes the need to own more than one phone, with customers able to use a single device that can switch seamlessly between fixed and floating networks.

It means whenever customers are within reach of a BT wireless access point in their home or office, they will be able to connect through the BT network. If they move out of coverage range, they will switch to Vodafone’s cellular network, giving them the best available connection wherever they are.

BT battled Vodafone, the mobile phone market leader, in its domestic market before spinning off its mobile arm O2 in November 2001.

The company announced plans to return to the mobile market last June, as it was seen as a fresh growth opportunity which could offset falling revenues in its core fixed-line business. It now has 170,000 residential and business mobile customers.

Pierre Danon, chief executive officer of BT Retail, said this new relationship would strengthen both companies.

"It is a first relationship of its kind as we will work closely on a number of fronts, with Vodafone UK providing the network services for BT’s internal and external requirements," he said.

And Steve Andrews, BT Group chief of mobility and convergence, added:

"There has been a lot of talk about fixed and mobile convergence but, from later this year, it will be here from BT. We have moved from future vision to reality."

http://business.scotsman.com/technology.cfm?id=571122004