BT Genie will offer unlimited SMS messaging and mobile Internet for GBP20 per month.
BT announced last night that its UK mobile portal, Genie, will offer unlimited text messaging and mobile Internet access for GBP20 per month. 500 million text messages are sent in the UK every month, and by 2003 mobile Internet is expected to be the primary method of accessing the Web – so BT is seizing the opportunity to take advantage of the huge growth in this area. Since unmetered access has proved very popular in fixed line Internet access, strongly stimulating demand, BT Genie hopes to emulate this trend in the mobile context.
The service should help accelerate demand for WAP phones and services. Uptake of these has been slower than expected due to lack of quality content and applications, poor presentation (WAP phones have small screens with no color), slow download times and high prices. Genie hopes that the new offering will attract early adopters (technically savvy people wanting a convenient, personalized service) by removing the cost obstacle, despite not addressing the technical problems.
However, another major reason for the announcement may well be to promote Genie’s onebox service, due to launch in early 2001. This service, created in partnership with phone.com, will offer Genie customers an all-in-one message service, unifying SMS, fax, email, and voicemail. The onebox service will be launched worldwide, building new markets as well as consolidating Genie’s position in the markets where it already operates. The unmetered access service will help pave the way for onebox by encouraging people in the UK to use their phones for more such data applications.
The unmetered service also serves to differentiate BT Genie from its competitors. This is the first 24-hour 7-day unmetered mobile Internet offering in the UK (although Orange’s service is free at weekends), and will consolidate Genie’s position in the market by giving it a first-mover advantage. To capitalize on this advantage, Genie must ensure it stays ahead as new-generation mobile Internet services such as GPRS and then UMTS are rolled out.
