O2 Enters the Broadband Market

Having repeatedly delayed its launch, O2 announced a modest target of one million customers and a profit on the new service by 2010.

It promises “to make broadband better” by addressing “the frustrations that have created dissatisfaction and create an overall service quality that sets a new standard in the broadband market.”

Michael Phillips, BroadbandChoices.co.uk product director, comments: “O2 has described its service as ‘a breath of fresh air’. It is making some impressive promises to make customer frustrations over hidden costs, bad customer service and technical complexity a thing of the past.

“If it can keep those promises it will prove a popular addition to the UK broadband market. For O2 pay-monthly customers these packages also offer great value at high speeds.

“O2 is taking the moral high ground and capitalising on broadband providers’ recent bad press over the promised speeds that they fail to deliver. O2 has said that it will check customer lines up to a month after they sign up to ensure people are placed on the correct package and that they only pay for the speed that their line can support.

“If O2 Broadband can keep up with the good reputation and speeds of Be Broadband, which it owns and whose network it will use, it could well exceed its target of one million customers by 2010 - especially since it already has 17.8 million UK mobile phone customers,” concluded Phillips.

O2 Broadband will initially be available to 50 per cent of the UK and packages will come with a free wireless router, McAfee security and parental controls, and 24 hour technical support on a free phone number.

The three O2 packages to go live on 15 October will be:

The Standard Package at £7.50 per month for up to 8Mb

The Premium Package at £10 per month for up to 16Mb

The Ultimate Package at £15 per month for speeds of up to 20Mb