The announcement for the SME sector comes one week after BT unveiled a converged fixed-mobile communications system for large enterprise customers, codenamed Enterprise Fixed-Mobile Convergence. That service is expected to go live early next year, and will allow corporate users to have a single mobile device they can use over WiFi in the office, at home or in hotspots, and as a regular cellular wherever a wireless LAN connection is not available.

Now the London, UK-based carrier is offering its SME client base an increase in bandwidth that is four times greater than currently offered by BT Business Broadband. The 8MBps connection will be automatically provided to new customers, and BT said it would begin contacting existing customers to offer them the opportunity to upgrade to the faster speed.

The deal also includes the provision of a free wireless router, known as the BT Business Hub, manufactured by 2Wire Inc. The new hub includes a built-in business-grade firewall and will allow BT to upgrade it remotely with new software when required.

According to BT, the new BT Business Hub gives customers the freedom to share their internet connection, by wireless or Ethernet around the office. It said is high-powered wireless technology virtually eliminates wireless coldspots.

An added bonus, according to BT, is that with an optional subscription to BT Business Broadband Voice, the hub gives customers the means to make calls over the internet.

BT said it was offering free connection to Broadband Voice, a saving of 40 pounds ($75), while rental will be from 14.99 pounds ($28.22) a month for three months, and then 19.99 pounds ($37.63) a month thereafter. Broadband Voice gives customers unlimited UK calls of up to an hour and fixed to mobile calls for 25p ($0.47) for up to an hour.

The launch of up to 8MB broadband with a high performance hub enables small and medium businesses to network their office and make the most of their broadband connection with products and services such as BT Business Voice, Fusion, or IT Support Manager, said Bill Murphy, MD at BT Business.

BT is expected to report its full-year results on Thursday May 18, amid reports that its 34bn pounds ($64bn) pension fund has recovered from a 3.3bn pound ($6.2bn) deficit at the end of March 2005 to a little more than 1bn pounds ($1.88bn) in the red.