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The idea is that the mobile phone industry looks to broadband internet access as a new way to make money. O2, owned by Telefonica, bought the residential internet service provider Be Broadband, a move that will allow O2 to offer converged mobile and fixed-line services.Most players in the industry think that the future is mobile broadband and believe that "the convergence strategy seems to be a defensive strategy as the major mobile phone companies are scared that the fixed-line operators are coming after their business." (Jim Hyde, head of T-Mobile's UK business).

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BT seems to be on the side of converged mobile and fixed-line phone services and offered a package with interactive TV, videophoning and other integrated home media services including video on demand, voice-over-internet phone calls and wireless broadband.-Mobile, fair to its strategy, is launching an upgrade to its existing equipment that will make its 3G network four times faster. The service will cost £17 a month for up to one gigabyte of web surfing while Vodafone that launched a similar service but with a quarter of the capacity will charge £25.

 

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