Feeds

O2: risks are for losers

Outlines cagey approach, snubs WiMAX

Eight steps to building an HP BladeSystem

Supersexy mobile operator O2 revealed its glamourous secret to growing a dynamic converged communications operation: proceed with caution.

O2 UK execs have watched with glee as Orange and TalkTalk's "free" broadband offerings have been widely reported as backfiring. Since it bought small ISP Be in June, O2 says it has been quietly working on local loop unbundling to ensure it works when it finally launches bundled mobile and broadband in the middle of next year. It announced that Be had unbundled 300 exchanges, covering under a quarter of the population.

The plan was detailed at O2's annual strategy knees-up in London following results on Tuesday which must have had rivals at Deutsche Telekom and Vodafone sobbing into their cornflakes. The roll-out should be as free of cock-ups as possible, O2 says, and shoot for straight-up value rather than tricksy "free" marketing.

O2 UK CEO Matthew Key said: "Customers are rebelling against free broadband. They associate free with substandard."

Vodafone will be targeting the same perceived customer service weak spot in existing bundles after its recent about-face on broadband by announcing a bundle to launch in the new year. It had previously pontificated about its plans to be a "pure-play" mobile outfit.

O2's calculated entry into the broadband market will be mirrored in its apporach to new technologies. Outside the Czech Republic, O2 has only dipped its toe into IPTV. Contrast that with BT, which is set to dive right into the market with BT Vision anytime now.

Similarly in mobile TV, while Virgin has already launched the Lobster phone to a muted reception, O2 yesterday refused to be drawn on when it would enter the fray. The firm is conducting trials across its territories concentrating on building interactivity into the experience by combining DVB-H TV with 3G services.

HSDPA has the beating of WiMAX, according to O2 CTO Dave Williams. When it begins punting converged mobile/broadband at consumers and businesses, O2 will offer shrunken 2G and 3G base stations as wireless routers rather than getting involved in unlicensed spectrum.

O2 group CEO Peter Erskine said: "We back winners."

That's despite apparently betting on web 2.0-style services to get paid-for content into user's pockets. The firm demonstrated its LookAtMe YouTube-style video service, which charges 35 pence per clip.

Accepting the hype bubble surrounding long-tail monetisation of frat boy-generated video will burst sooner-or-later, Erskine denied O2 could suffer in the fallout. He told The Register: "We're not exposed to that at all." ®

Securing Web Applications Made Simple and Scalable

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.