Bringing fixed and mobile together

Convergence

Convergence - which the industry has been talking about for some time - is finally become a reality. This time it's for real because customers can see for themselves the added value convergence offers.

O2 knows from its experience in Germany that customers want interchangeable fixed and mobile - O2 Germany pioneered the concept of one phone, called Genion, which seamlessly switches from a fixed environment to mobile. The advantage for the customer is that they benefit from cheaper fixed rates, but have mobility when they need it.

And in data services, the worlds of telecommunications - mobile and fixed - are coming together with the worlds of PCs, internet and entertainment. Increasingly people expect to be able do what they do in a fixed environment on the move.

O2 has a strategy of rolling out new, converged products and services across its European footprint as well as leveraging the strengths from being part of the wider Telefónica group, including its fixed line and broadband experience. Telefonica has, in particular, provided invaluable insight into customer care support.

Following its acquisition by Telefónica in 2006, the O2 Group expanded to include Telefónica Deutschland, the fixed DSL provider, and Telefónica O2 Czech Republic, the country's leading mobile and fixed telecommunications company, which has launched new services under the O2 consumer brand. In addition, O2 UK purchased Be, one of the most innovative and technically advanced UK broadband providers, for £50 million and will look to offer services from next year.
 
At the end of October 2006, O2 Germany launched its DSL offer. O2 is the only provider of integrated communication services in Germany to offer mobile, fixed and Internet services on one monthly bill, backed by a single customer service number and competitive monthly charges. In Czech Republic, O2 has more than 450,000 DSL customers and recently launched its own TV service based on Internet Protocol (IP) technology, which offers more than 30 broadcast channels through a fixed connection. Named O2 TV, the user only needs a modem and a set-top box connected to the television in order to watch television shows, movie rentals and receive radio stations.

O2 will launch a full commercial fixed broadband service in the UK later this year, when the customer proposition is absolute right (customer support, quality of service) - it is speaking with customers and currently conducting selective trials with them. In the meantime, Be, has rolled out over 300 exchanges across the UK as of November 2006, enabling it to provide broadband to nearly a quarter of the population.

The company also launched Upload Plus, which allows business broadband customers to send data at much faster speeds.  Be business customers will be able to increase their maximum upload speed from up to 1.3 Mbps to 2.5Mbps using Annex M of the ADSL 2+ standard.  Currently, Be Office customers can get download speeds of up to 24 Mbps and upload speeds of 1.3 Mbps. Be was the first UK ISP to offer this service.

In the mobile space, O2 is rolling out faster speed 3G networks using HSDPA (Higher Speed Digital Packet Access) technology. It has already launched HSDPA in two O2 Territories - Isle of Man and Czech Republic - and its launch plans are well advanced for other territories, including the UK, Germany and Ireland. HSDPA builds on O2's success to date in 3G. For example, O2 UK has a current active base of nearly one million customers by pushing services, not the technology, on its mobile internet portals, O2 Active and i-mode. With an increase in attractive handsets, O2 expects to see the numbers grow further and, along with DSL, provide customers with high-speed access within the home, the office and on the move.