BT launches first fixed-mobile phone

Britain's BT Group unveiled today its long-awaited cell phone service that switches between fixed and mobile networks in a battle…

Britain's BT Group unveiled today its long-awaited cell phone service that switches between fixed and mobile networks in a battle to stem a tide of calls moving from land lines to mobile networks.

BT's new service, branded "BT Fusion", will offer phones made by Motorola, and target consumers with a mobile that will hook onto its fixed-line network when customers are at home or in the office - but latch automatically onto a wireless network when they are on the move.

"For the first time customers will be able to get the best of both worlds in one service - combining the convenience and features of a mobile with fixed line prices and quality," said Ian Livingston, head of its main consumer arm, BT Retail.

BT said its pioneering Fusion service would allow customers to make calls to landlines at landline rates of 5.5 pence for up to an hour for off-peak calls, and 3p a minute at peak hours.