O2 Group, the pan-European mobile service provider recently consolidated within Telefónica of Spain, said it added 699,000 new mobile customers in the first three months of 2006, taking its total mobile customer base to 32.79 million, up 16% year-on-year. O2 UK added 359,000 net new customers, up 14% year on year, taking its base to 16.34 million, driven by a record number of users upgrading their contracts, resulting in a continued improvement in post-paid churn. O2 Germany added 330,000 net new users, up 27% to 10.099 million, but saw ARPU fall on the back of rising competition, whilst O2 Ireland ended the quarter with 1.593 million customers, 3.9% higher than at the same time last year. Czech Republic mobile operator Eurotel added 19,000 net new customers, up 9%, whilst its fixed line parent Cesky Telecom added 64,000 ADSL connections taking its total base to 338,000 at the end of the quarter. Ownership of Cesky Telecom and Eurotel was transferred to O2 by its new parent following Telefónica’s takeover of the group.