BT has launched a mobile offering under the BT Mobile brand with a focus on low-cost 4G services.
BT Mobile will run on the EE network as part of a mobile virtual network operator (MVNO) agreement struck by the two companies last year.
BT is also in the process of buying EE, although this is unlikely to be completed until later this year.
Acting as an MVNO as the deal progresses is a clear indication that BT sees the mobile market as key to its ambitions and does not want to waste any time in getting customers onboard.
BT has pitched the service as the cheapest 4G offering on the market, confirming that existing BT Broadband customers will be offered even lower rates than standard consumers.
At its cheapest, BT Broadband customers can pay £5 a month for a Sim-only deal that offers 500MB of data, unlimited texts and 200 minutes of calls. This is £10 a month for non-BT broadband customers.
The second tariff is 2GB, with unlimited texts and 500 minutes for £12 a month, or £17 a month for non-BT customers.
The top deal offers a whopping 20GB of data and unlimited texts and minutes for £20 a month for BT customers and £25 for everyone else.
BT Mobile subscribers also receive free access to to the firm's public WiFi hotspots and can watch BT Sport content via the app free of charge.
John Petter, chief executive of BT Consumer, said that adding mobile services will help customers get connected whenever they want.
“Offering BT customers the UK’s best value 4G data deal is a great way to start our journey towards re-establishing ourselves as a major player in consumer mobile,” he said.
“Our customers are consuming increasing amounts of data and they want the best possible connection wherever they are. It’s our ambition to meet this demand by combining the power of our fixed fibre service with WiFi and the convenience of mobile.”
Paolo Pescatore, director of multi-play and media at analyst house CCS Insight, described BT’s low price strategy as a clear move to set up as a quad-play provider.
“Today’s launch is more aggressive than many anticipated and underlines BT’s aspirations in the multi-play services market,” he said.
Pescatore added that bundling BT's sports offering into the service is a clear differentiator from rivals and could force Sky into a mobile move to fight back.
“Rivals should be threatened by this move, and Sky in particular will need to react given how punchy BT’s SIM-only deals are. With this in mind Sky may need to launch mobile a lot sooner,” he said.
The move comes just 12 hours after Three confirmed that it had reached an agreement to buy O2 for £10.25bn, as the UK telecoms market goes through some major changes.
IBM software case reminiscent of TSMC trade secrets theft claim
iPhone 8 specs, release date, price, features, basically everything! But will it have a curved display?
CISO pay boom as security become a boardroom concern