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BT Investigating Wi-Max Investment—Again

By Dianne See Morrison - Wed 09 Apr 2008 03:38 AM PST

British telecoms group BT (NYSE: BT) is considering investing in WiMax, according to Ian Livingston, the company’s CEO designate, a move that could help it overcome its strategic soft spot, reports the Financial Times. BT has been circling WiMax for several years, but the timing now may be more critical for the company. Livingston is replacing Ben Verwaayen, who has held the post for six years and is considered by the industry as an instrumental figure in turning the former state monopoly around after it was forced by the regulators to spin off its mobile network in 2001.

But the last six months have brought rockier times for BT—as its deteriorating wholesale division has dragged the company down. BT’s mobile phone division--which piggybacks on Vodafone’s (NYSE: VOD) network—is also struggling, with numbers hitting an all time low in February. Having its own Wi-Max network would allow the company to better compete with the triple and even quad offers its rivals are offering, as well as control its own destiny. Other analysts believe, however, that a WiMax play might be targeted at corporate customers rather than consumers. Ofcom’s summer auction of the 2.6 GHz band could be used for WiMax, but company sources told the FT that BT has made “no commitment” to buy spectrum, or to use WiMax, and that “much would depend on price.” They have also rejected the notion that they would buy a wireless phone operator. 

Posted in: Companies, Countries, Europe, UK, Technologies, WiMax


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mocoNews.net is a news site covering the business of mobile content.

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Staci D. Kramer
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Tricia Duryee
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Dianne See Morrison
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