O2 confirms broadband plans

15 May 2006

Mobile operator O2 UK has confirmed that it plans to enter the broadband market before the end of the year, reports the Financial Times. O2, now owned by Telefónica of Spain, is considering a number of options to enable it to launch bundled broadband and mobile services, including initiating local loop unbundling or buying an established internet service provider. The cellco has no plans to offer fixed line telephony, though broadband customers will be able to use third-party VoIP services.

Earlier this month, local news reported that O2 was eyeing the UK broadband businesses of Cable & Wireless and Tiscali. A spokesperson for O2 told the Independent: ‘We’re looking at options to either buy an ISP or go down the wholesale route or, alternatively, we may do nothing. However, no approaches have been made and no decision has yet been taken.’

United Kingdom, O2 UK