World's first combined fixed and mobile phone

BT Fusion can offer customers huge savings by allowing calls to UK landline numbers to be charged at BT landline rates of 5.5p for up to an hour for all off-peak calls and 3p a minute at peak times.

For example, a BT Fusion 10-minute off-peak rate mobile call from home will cost up to 95 per cent less than the same call using a typical mobile competitor package.

Calls over broadband in the home means customers can make a mobile call but with the quality of a fixed-line and worry less about the signal being lost or dropping out. A recent survey of BT Broadband customer revealed that as many as 19 per cent had experienced problems with mobile coverage in the home.

It is all made possible by a special access point installed in the home – called the BT Hub – which uses Bluetooth wireless technology to switch the BT Fusion handset seamlessly to the broadband line – even in mid-call.

The BT hub also works as a wireless (Wi-Fi) router– allowing the user to connect up PCs, laptops, games consoles and printers wirelessly around the home.

Ian Livingston, CEO for BT Retail, said: "We promised to launch the world's first seamless combined fixed and mobile service and now we're doing it. The service will transform the communications landscape and bring excellent value to customers.

"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."

"The cornerstone of this strategy is BT Broadband which can be wirelessly enabled – to link up everything from your laptop, PC, games console to your home security system – and now your mobile."

"We know that many of our customers enjoy the convenience of their mobile phones when they're out and about - but switch to using a landline phone when they arrive back home to save money or because they have little or no mobile coverage.

"We're now delivering a world-first service that allows our customers to benefit from BT's great value landline rates with guaranteed coverage at home. You can even set the handset to work at more than one location.

"The launch of BT Fusion will start with approximately 400 early adopter customers, with the service being widely available for delivery in September.