Third quarter results posted by O2 in Germany and the UK have led the cellco to cut its forecast for revenue growth in the twleve months ending December 2006 to ‘high single figures’. The previous prediction was for ‘low double digits’. O2 Germany’s subscriber base grew by 294,000 in the third quarter to reach 10.629 million, with monthly blended ARPU falling from EUR25.7 to EUR24.9 (USD33.0 to USD32.0) in the three months to September. The cellco, a subsidiary of Spanish giant Telefónica, has felt the full force of spiralling competition in the German market, with E-Plus in particular slashing tariffs and capturing customers. In addition, the German regulator Bundesnetzagentur has imposed cuts on termination charges; O2 must not charge more than EUR0.099 (USD0.127) to connect a fixed line call to a mobile.