O2's enterprise division has clinched a number of major multi-million pound deals in both the public and private sectors.
Speaking at the announcement of O2's Q1 results, CEO Ronan Dunne (pictured) said the division had seen 50% growth year on year boosted by a welter of deals including the operator's largest ever mobile acquisition contract with support services company Carillion. The deal sees O2 providing 15,000 mobiles to Carillion's employees. Dunne said: 'In this industry there are less than half a dozen contracts of that size. It is significant.'
O2 has also landed a number of major public sector contracts in the quarter. These include a £1.2m contract to supply a range of mobile, digital and ICT services to Helena Partnership, a housing association based in St Helens in the North West of England, with over 12,000 properties under their management; and the total management of the Royal Borough of Greenwich's entire mobile fleet with over 2,000 mobile users. These wins come hard on the heels of securing similar deals with London Borough of Southwark and London Borough of Croydon. Dunne said: 'Last year we were winning a local authority deal a week and we are maintaining that momentum this year.'
He added: 'The public sector is very important to us and we have just received CAS(T) accreditation which makes us the first mobile network operator to receive accreditation to provide both voice and data services for local and central government.' The accreditation cements O2's place as a member of the Government's Public Sector network (PSN) framework.
Dunne also pointed to the recent five-year extension of its contract with BT Wholesale, as evidence of the division's success. The deal, estimated to be worth several hundred million pounds over five years, gives O2 customers access to BT fixed lines and integrated IT services. Dunne said the extension would also see O2 expand its product range, which will see it sell a suite of IT services, along with infrastructure and professional services.
O2 CFO, Mark Evans, who also presented the operator's quarterly results, said O2's enterprise division is also winning significant amounts of business from rivals. He said: 'We have delivered our fifth straight quarter of net positive port-ins,' adding that the company was also driving up cross sales of unified comms products to new levels. He said: 'Over 25% of enterprise customers are now taking an offering from our digital portfolio such as Wi-Fi, Cloud and mobile voice recording.'
O2 is also targeting vertical markets. Evans pointed to O2's Smart Steps programme which uses anonymised and aggregated mobile network data to help companies such as retailers measure footfall and councils understand traffic flows.
'We see ourselves as very different from our competitors in that we are solution, not product, orientated,' Evans added.