9/10/2009 11:04:00 AM
O2: ‘Our core business will remain stable’
O2 has outperformed its rivals, but the downturn in the economy continues to take its toll on the overall mobile phone market, O2 CEO Ronan Dunne told Mobile this week.
He said that O2 is the only operator continuing to grow, with Q2 revenues up 4.1% and net mobile additions of more than 252,000 in the quarter. But the slowdown in the economy was faster and deeper than expected.
Dunne added: ‘Our core business will remain stable with a light decline in revenue, but this will be offset by gaining market share and further growth in the provision of professional and managed services for businesses.’
Speaking just ahead of the T-Mobile/Orange merger announcement, Dunne said the operator would concentrate on its core market revenue by gaining market share and by building on its newer offerings, such as O2 Money, O2 Media, Laptops and the Joggler.
O2 is keen to expand its business market revenue by building more integrated fixed, mobile and data management solutions for corporate and SME customers.
‘We see ourselves as a connectivity service brand,’ said Dunne. ‘But pure connectivity in itself is not what it’s about – it’s what that connectivity allows you to do that is important.’
O2 is also looking to expand its offerings in financial services. Dunne is determined that O2 will be the leader in contactless technology, where people can use their phones to pay for goods and services.
The network also wants to expand its interest in the mobile advertising market via its O2 Media brand. This provides a way to use the data of O2 customers who have opted to receive offers and benefits as part of their contract.
Dunne said: ‘Just offering 50 free texts or calls in return for agreeing to receive untargeted, irrelevant advertising isn’t the way forward – that just irritates people. Relevancy is the key.’