O2 enters Television market with Triple Play offer

The multiplay market is becoming even more crowded as the Guardian reports that O2, the mobile phone service provider owned by Telefonica, is planning to launch a TV over broadband service by the end of 2008 if trials are successful.

O2 has already released a TV service in the Czech republic and serves content from Warner Bros, HBO and Paramount already.

The service is expected to be delivered through Be Broadband, which O2 had acquired last year; Be operates its own LLU infrastructure, it potentially has a lower overhead compared to other competitors due to cheaper bandwidth.

O2 could potentially replicate the move by BT to offer a Freeview box with Video On demand.

The other big mobile service provider, Orange has already annonced that it will roll out a TV platform in 2008 making it a full quad player with other services including landline, broadband and mobile telephony.

It will be interesting to see whether Vodafone, T-Mobile and Three will engage in the same diversification process in a bid to prevent customers from migrating to rivals.