SIM marketing deal boosts O2 results

The CEO of Telefonica O2 Europe claims that its latest set of results have been greatly helped by making things simple for customers to sign-up for contracts. Its highly marketed Simplicity deal is said to have won over 200,000 new U.K. subscribers in the first three months of the year, taking its total to 18.4 million.

The Simplicity deal provides the user with an O2 SIM card that can be slotted into their existing phone with the option to cancel the contract within 30 days. Almost half a million customers have taken out Simpicity contracts and O2 is now planning to launch the idea in Ireland and Germany.

"Simplicity now accounts for over one third of all O2 online sales and customer numbers will shortly pass half a million," said the Telefonica O2 Europe CEO Matthew Key. "It has proved particularly popular in the family segment and has been an influential factor in the increasing trend of prepay to postpay migration amongst O2 subscribers."

Although the number of pay-as-you-go customers fell, it won't bother O2 too much as it makes more on contracts. It raised ARPU to £23.60 a month, up from £22.30 last year.

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