O2 enters UK fixed-line market
UK mobile carrier O2 is entering the residential fixed-line market, offering landline broadband customers from March.
The move is a sign that the carrier is moving beyond mobile in a bid to win market share with bundled services and it is anticipated that other mobile competitors will follow.
“This is the most important launch for us in the home space since we entered the broadband market and is part of our strategy to evolve beyond mobile to a leading connectivity brand,” O2 UK marketing director Sally Cowdry said.
It is the first time that O2 will compete in the fixed line arena against its former parent BT.
Analyst Ian Watt from Enders Analysis, told the FT that O2 had entered the fixed broadband market relatively late, making it difficult to sustain rapid growth, since almost two thirds of UK households already subscribe to a fixed broadband service.
“O2’s entry into telephony should help it continue to grow its wireline customer base, but is unlikely on its own to turn the company into a major wireline player in the UK,” he said.