BT becomes a mobile operator - again

BT is once again in the consumer mobile phone market following the launch of Mobile Sense, a mobile service that will allow subscribers to tailor their own price plans and buy handsets online.

It will piggy-back on O2's network, one which BT knows well - it used to own it until mmO2 was spun off as a separate company a year ago.

Pierre Danon, BT Retail CEO, called the service a "unique proposition" and the company has stressed much of the support and marketing involved will be done from the bt.com website, to increase convenience and keep running costs down.

However, Orange's 'Your Plan' offering, announced last month, seems to have beaten BT to the personalised calling plan punch.

O2 said it is pleased with the increased wholesale business the deal will mean. It already has mobile virtual network operator (MVNO) agreements in place with supermarket Sainsbury and others, and it is an area most mobile operators are already in or considering.

Handsets will be delivered within 48 hours of bt.com orders being placed, BT Retail promises, and Mobile Sense users will need to pay a monthly line rental and agree to a 12-month contract.