Press release

• O2 enters laptop market as sales set to grow 50% quarter on quarter in 2009
• New product offering meets key customer needs of style, substance, staying power, service and security
• Top-end Samsung mini-laptop to take share of booming market

O2 today announced its plans to enter the laptop market with a promise to couple market-leading home and mobile broadband with impressive devices and excellent customer service. With laptop sales expected to reach 9-10 million devices in 2009¹, O2 is ranging Samsung laptops to create exclusive packages that will give customers everything they need to be more connected, with minimum fuss and hassle.

O2 will introduce three new Pay Monthly deals, available online and at its 490 stores nationwide, on 27 February 2009. With broadband bundles set to take a large proportion of the overall laptop market within three years, O2 is entering this market in a strong position with an all-round package that will meet the consumer needs of style, substance, staying power, service and security head-on.

O2 CEO, Ronan Dunne, highlighted the great opportunity presented by the market today:

"We all want to be better connected at all times and the substantial and continued growth in the laptop market is symptomatic of this desire. Laptops are rapidly eroding the desktop PC market and at the same time, the emergence of the mini-laptop has opened up a whole new market for ultra-portable devices - one that is expected to more than double in size in 2009 alone.

"To date, the subsidised laptop market has received some bad press due to poor equipment and frustrating customer service experiences. O2 is stepping into the market with a promise to turn this around by taking a holistic approach to the product offer. Our package ticks every box when it comes to the main purchase drivers in the market, which in turn means we are taking away the “worry-factor” involved in buying a laptop."

O2's laptop package is designed to give customers everything they want at a price that they will love:

• Style - Samsung’s NC10 mini-laptop and R510 laptop models combine great design with looks for the ultimate in laptop style.
• Substance - with strong specifications and great performance, Samsung’s NC10 mini-laptop and R510 model deliver on functionality too.
• Staying Power - Samsung’s solid specifications deliver staying power and assure customers that their choice of device will meet their computing needs for years to come, rather than just months.
• Service - Recognising the ‘worry factor’ that many consumers have when looking to buy a laptop, O2 will offer customers expert sales advice to meet their needs. This includes O2 Laptop Support at no additional cost for a limited period to help get them up and running, with a chargeable option to extend this cover, O2 Assistant software to allow computers to be fixed remotely and award-winning UK based customer service. In addition O2 is offering a 30-day Happiness Guarantee on all laptops and an extended two-year warranty on all devices at no extra cost.
• Security - McAfee software to ensure customers feel secure online.

"The growth in the laptop market is clear to see and we want to be a part of it. But we want to ensure that our customers get a better experience, not just when they buy the package but throughout the duration of their contract with us. Our two year warranty and 30-day Happiness Guarantee are market leading and show our continued commitment to providing great service," adds Dunne.

"Our bundle packages, unique amongst those currently on the market, provide customers with everything they need and we are confident they will move people away from traditional laptop providers and into our stores."

Customers can purchase O2's new laptop packages at any of the 490 stores across the UK or by visiting our online shop at www.o2.co.uk from 27 February 2009.

Overview of O2's mobile broadband laptop package²

*Upgrade to O2 Multi-Media laptop for a one-off charge of £78.29.

Notes to editors

• ¹ GfK report – Changing Face of the UK IT Market September 08
• ² Excessive usage policy and terms apply, see o2.co.uk for details. O2 Home Broadband includes Standard package for £4.89 a month (a saving of £2.45 inc. VAT a month). Customers may opt to upgrade to any other Home Broadband package and receive a £2.45 (inc. VAT) per month discount.

Specification of O2 Laptops

For further information, including images of Ronan Dunne or the Samsung devices, please contact:
O2 Press Office 
Tel - 01753 565656
Email - pressoffice@o2.com

About O2

• Telefónica O2 UK Limited is a leading communications company for consumers and businesses in the UK, with 19.1 million mobile customers and over 260,000 fixed broadband customers as at 30 September 2008.
• Telefónica O2 UK Limited is part of Telefónica Europe plc which is a business division of Telefónica S.A. and which owns O2 in the UK, Ireland, Slovakia, Germany and the Czech Republic, and has 44.9 million customers.
• In 2006 Telefónica Europe acquired Be, the UK fixed broadband provider, and in October 2007 O2 launched its broadband service using the Be network.
• O2 is the naming rights partner of The O2, the world-class entertainment venue.
• O2 was ranked the 6th best place to work in the Best Companies to Work for 2008 List and has been awarded a three-star accreditation denoting an ’extraordinary’ company.
• O2 was launched on 1 May 2002 and now has more customers than any other UK mobile network.
• O2’s UK mobile network covers 99% of the UK’s population. O2’s 3G network covers over 80% of the UK population and is fully HSDPA-enabled, providing speeds of up to 3.6 MBps for customers with an HSDPA-enabled device.
• Telefónica Europe also owns 50% of the Tesco Mobile and Tchibo Mobilfunk joint venture businesses in the UK and Germany.
• For b-roll footage of O2, please visit http://www.digitalnewsagency.com/
• For further press information about O2 go to http://mediacentre.o2.co.uk/ and the O2 Digital News Centre at http://www.o2.co.uk/dnc
  

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