Feeds

O2 refuses to deny plans to offload home broadband product

Sale may happen after converged core migration completes, source tells El Reg

High performance access to file storage

Exclusive UK telecoms provider O2 has refused to deny that it is planning to offload its fixed line home broadband product later this year.

According to a source close to the situation, O2 - which is currently undergoing an upgrade of its broadband service over to a single core network - is mulling over a sale of its local-loop unbundling (LLU) consumer broadband product.

It's understood that a would-be suitor will consider taking the service off O2's hands only once the converged core migration is completed.

The Register has learned that that upgrade has in fact been delayed. The 35-week work was originally scheduled to be finished in around October 2012, according to an operational update issued to the telco's staff in February last year.

But O2, the trading name of Telefónica UK Limited - majority-owned by Spanish parent company Telefonica - has now confirmed that the upgrade won't be completed until the middle of this year. A spokesman at the company told us:

[W]e are going to experience a small delay in this project (from the original plan) to converge several of our networks onto a single core network, one of which is broadband. Some flexibility was always required as the work has to be carried out on an exchange-by-exchange basis which has caused this delay to happen.

Our original plan was to have this complete by the end of Q1 this year but we now aim to have this project finished by the end of June 2013.

However, the future of O2's home broadband product looks uncertain, according to our source, who - talking on condition of anonymity - claimed that it felt as if the mobile telco was squeezing all it could out of the fixed line service before potentially selling it off to the highest bidder.

It's understood that BSkyB wonks have recently visited O2.

When asked if it was true that O2 was considering flogging its home broadband service, a company spokesman simply told El Reg: "We do not comment on rumour or speculation."

In 2007, O2 became the first major ISP to make a commercial offering of ADSL2+ to customers, after it bought Be Unlimited for £50m in 2006.

Execs at O2 - which has been fixated on 4G - and senior people at Be have in recent months ducked questions about investing in fibre-to-the-cabinet (FTTC) technology for O2's consumer broadband service. ®

High performance access to file storage

More from The Register

next story
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
Broadband Secretary of SHEEP sensationally quits Cabinet
Maria Miller finally resigns over expenses row
Skype pimps pro-level broadcast service
Playing Cat and Mouse with the media
Beat it, freetards! Dyn to shut down no-cost dynamic DNS next month
... but don't worry, charter members, you're still in 'for life'
Like Google, Comcast might roll its own mobile voice network
Says anything's possible if regulators approve merger with Time Warner
EE dismisses DATA-BURNING glitch with Orange Mail app
Bug quietly slurps PAYG credit - yet EE denies it exists
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.