British Telecom, or BT, has today launched the world’s first hybrid mobile phone that can also be used as a standard landline phone.

This will be subscription-based service that BT said users would have to subscribe to in order to get started. Once they have signed up, they will get a Motorola v560 phone that is capable of supporting the new technology in addition to a small wireless access point. The wireless access point will transmit data wirelessly and communicate to the phone. If the phone is out of range from the network, it will essentially work as a mobile phone, but once it’s in the range it will switch to the landline mode. BT said v560 would use Vodafone’s mobile network to work as a regular mobile phone.

BT further added that users would be able to connect game consoles, additional computer systems and other technology that uses wireless networking to operate. Users would be able to connect up to six phones per home, but only three can be used at any given time, said the company.

BT’s hopeful of its new venture, and said it would immensely benefit the company’s subscribers. "You get all the convenience and features of a mobile phone but with a fixed line cost and the quality you are used to with a fixed line," said Ian Livingston, Head, Retail, BT.

BT said it plans to start the service with 400 initial subscribers. The service is targeted at residential homes and small business ventures.

The company said it may take sometime to establish this service, but it’s expecting millions of customers in the next five years.

British Telecom further added that users would save 95 percent in charges on an average 10-minute phone call via their service.

The company is expected to generate approximately $1.8 billion over the five year period from mobility and convergence services.