O2 aims for a million broadband customers

4 Oct 2007

O2 UK has set itself a target of having a million fixed line broadband customers by 2010. O2 will launch its fixed line broadband service on 15 October, although only half the population will be covered because of its decision to only offer services in areas where it has a presence in BT exchanges. O2 is seeking to entice people to buy its broadband by emphasising how it delivers superior download speeds of up to 20Mbps. Last year O2 bought Be, a specialist broadband company which has rolled out ADSL2+ technology, for GBP50 million (USD100 million).

O2 regards fixed line broadband principally as a tool to shore up the loyalty of its mobile customers. The company had 17.78m mobile customers at the end of June 2007, making it the largest UK wireless operator, but it is engaged in a fierce battle with rivals Vodafone, Orange and T-Mobile. Vodafone and Orange already sell fixed-line broadband. The O2 broadband service is pitched at its mobile customers on monthly contracts, which will be offered broadband packages priced between GBP7.50 (USD15) to GBP15 a month. Pre-paid customers, and non-O2 users, will pay at least GBP10 a month.

United Kingdom, O2 UK