O2 To Launch Home Phone Service In March 2010

Telefonica-owned mobile service provider O2 has officially become a triple-play company after it announced that it will launch home phone package in March 2010 as it looks to expand its portfolio of telecommunication services.

O2 purchased Be Broadband back in June 2006 before launching its own broadband range in October 2007. Indeed, a number of other mobile phone providers, Orange, Vodafone, Carphone Warehouse (through Talkmobile and Talktalk) and Virgin Media also offer such a package.

Sally Cowdry, UK marketing director at O2, stated that “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".

At its cheaper package, Evening and Weekend, costs £9.50 and includes free unlimited calls to UK homes on evenings and weekends. The Anytime package adds unlimited calls at anytime to UK homes, 0845/0870 and landlines in 20 international countries.

The deal only applies to those who already using one of their broadband packages, which means that you will need to be an O2 customer to be able to benefit from it. Some have also noticed that the packages charge for features such as Voicemail, Caller Display or block numbers.

This means that the cheapest an O2 customer will be paying for broadband and fixed telephone will be £17 per month. The contract length lasts 12 months and includes unlimited download.

Our Comments

We suspect that O2 wants to become a quad player like Virgin Media and BT by flogging Freeview boxes. With the acquisition of Tiscali, Carphone Warehouse is not far from becoming one as well. Sky could partner with Three or T-Mobile if it wanted to.

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