10/4/2007 2:08:00 PM
O2 enters broadband with mobile deals
O2 has finally announced plans to launch its own broadband service, pitching it as a ‘simple promise to make broadband better’ amidst customer confusion and high costs from rivals.
O2 claims its unlimited broadband deals will avoid the ‘hidden costs, bad customer service and technical complexity’ of rival packages.
The new service, which O2 says is aimed at consumers who are dissatisfied with their broadband providers, will be available from 15 October.
O2 is said to have a target of 1m customers by 2010 but has entered the broadband market at a testing time. There is significant price competition, with the likes of TalkTalk offering free broadband on talk call plans, and the market continues to be dominated by Sky.
But the network is taking a different tack by making packages significantly cheaper for O2’s mobile pay monthly customers.
The O2 price plans come in three packages, named standard, premium and ultimate. The lowest price is £7.50 for pay monthly customers, with access speeds of up to 8mb, included wireless router, 100 inclusive texts and email to mobile services. But customers without an O2 mobile will pay £10 extra for their service.
The more pricey deals are £10 for up to 16mb and £15 for up to 20mb.
Compared to Orange’s cheapest deal, O2 is offering considerably faster connections. Orange’s new home starter package is £5 per month for mobile customers and £12 per month for others, but with speeds of just 2 mb and downloads limited to 6gb per month. But Orange includes unlimited evening and weekend calls to UK landlines starting 01 and 02 from a home phone.
Matthew Key, CEO for O2 UK, said: ‘The UK broadband market is fuelled by price competition but customers are also frustrated over hidden costs, bad customer service and technical complexity.’