BT uses WiFi to take advantage of new revenue streams
BT opts for WiFi to drive convergence
BT is the top telecommunications operator in UK, with more than 7,6 million fixed broadband subscribers (32% market share) and 34% mobile market share through the acquisition of EE. Back in 2008, BT was not yet a convergent operator but the fixed line incumbent seeking for innovative and transformational propositions that would eventually lead to convergence.
BT decided to focus on delivering WiFi services in order to:
Differentiate itself from the competition
Meet increased connectivity demands from foreign visitors
Renew its brand image to be perceived as innovative
BT approached two distinct user segments, each of them with a differentiated proposition.
Broadband customers could enjoy seamless WiFi access outside the home free of charge using BT connectivity App. In return, they had to share a bit of their home broadband access.
Occasional WiFi customers could enjoy WiFi on a pay-per-access basis. BT owns WiFi access points blanketing the vast majority of the UK’s territory, placing them in a privileged position to profit from providing the occasional connectivity that tourists often require. BT has also leveraged the opportunity to target those competitor’s customers that had an occasional need for WiFi, with broadband offers through their hotspots.
Over 700k active users per month
Significant churn reduction amongst active WiFi users
Largest WiFi network in the UK (5.5 million hotspots)
Innovative brand recognition (BT&Fon won 2008 wireless broadband innovation award)
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