Operator continues to target existing mobile base as fixed broadband market down 10%
O2 UK CEO Ronan Dunne claimed the operator is on course to hit its one million fixed-line broadband customer target by 2010 after gaining over 400,000 customers since its launch in October 2007.
The operator revealed its results last week, adding 63,600 broadband lines between January and March 2009.
Dunne said he was particularly pleased given his assessment that the fixed-line broadband market is down 10% from the previous year.
That decline in the overall market has been linked to the downturn in the housing market, with most consumers typically choosing a new broadband provider when they move home.
O2’s strategy has been to target its existing mobile base, offering fixed-line broadband on two year deals, often bundled with mobile broadband dongles and Samsung laptops.
Despite the encouraging numbers, the increase of 63,600 customers is a smaller increase from previous quarters where O2 added 74,000 and 73,000 fixed broadband lines.
Dunne also remained unperturbed by consolidation in the sector, with Carphone Warehouse acquiring Tiscali and cementing the presence of a ‘Big Four’ – BT, Carphone Warehouse (TalkTalk/Tiscalli/AOL), Virgin Media and Sky.
A total of 280,000 fixed-line broadband customers are believed to have been added in the first three months of the year, with Sky the biggest winners, taking 130,000 customers. Elsewhere, BT took 99,000, Carphone added 74,000 and Virgin Media added 42,000.
Dunne said: ‘The vast majority of customers taking our [fixed] broadband are part of a suite of services.’
The network has used customer service as a point of difference with its rivals, testing speeds at different stages to ensure they meet the levels promised to the customer.
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