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O2 see 6% decline in broadband customers
Friday 11 November 2011 17:13:11 by John Hunt

The latest financial results for the Spanish firm Telefónica gives us details for their UK arm, O2, who provide mobile and broadband services nationally. The overall revenue for the first 9 months of 2011 shows this to be down by 1.2% year-on-year at €5.17 billion, with the average revenue per user (ARPU) declining by 5.7% year-on-year.

Fixed broadband took a fall this quarter after being relatively stagnant over the previous 9 months. Around 27,600 customers were shed, a 6% drop. This is possibly due to a lack of superfast broadband products, with customers from O2 and its sister company BE, making a move to other providers who can offer these products. BE customers are known for being more tech-savy and therefore keen to get the most they can from their broadband.

Fixed telephone customers rose by 46,000 up to 182,000 which may be through converting existing broadband and mobile customers on to the product away from the more expensive competitors such as BT. O2's home phoneline rental is available for just £7.50 when taken with a broadband service.


Posted by dustofnations over 5 years ago
John - s/savy/savvy/
Posted by psdie over 5 years ago
Nope - it's because they slapped usage limits and aggressive throttling on all new packages last year or so. Fortunately I'm on their old decent "Standard" package - if they withdraw it, I'm moving. Phone line offer makes no difference - Primus are ~£6.49pm line rental with no tie needed and free evening/weekend landline.
Posted by AceGio over 5 years ago
psdie is right, the changes to the packages made all the difference to the retention of old and attraction of new customers. Their underhand method of getting customers off their legacy packages without explaining clearly the consequences of the move was very iffy.
Posted by keithpitt over 5 years ago
Couldnt agree more - that is why I ditched them.
Posted by DavidS over 5 years ago
in addition O2 Access was the worst broadband I ever had in my life. At times I could not even download a 2MB iphone app. It was so slow it would grind to a halt. Left for Plusnet and am achieving consistent 6Mb download speeds.
Posted by deejas over 5 years ago
You are all correct. I left them because of the lack of fibre. They are bang out of order for moving people onto throttled packages without informing them and also for withdrawing the legacy packages. I suspect this is just the tip of the iceburg. Give it a few months and it will be downhill for O2.
Posted by Bob_s2 over 5 years ago
I dont think the change to the packages made much difference they are still very competative with the competition

The real problemis lack of an FTTC product as BT continue to roll it out their market share as will that of the other ISP's will erode.

Currently all that ISP's can do is resell the BT product and their is not much margin in that

FTTC is allowing BT to reinforce it's near monopoly with fibre outside of Cabled areas

What is really needed is a second player in the infrustructure market
Posted by GMAN99 over 5 years ago
All that ISP's can do? What about PIA?
Posted by GMAN99 over 5 years ago
And how do you get a second player in the infrastructure market, who is going to start digging new ducts? Unless your talking about PIA which is just selling access to BT ducts/poles, ISP's might as well go direct.
Posted by timmay over 5 years ago
Well I'm still with O2 (old premium) and probably won't move until 13Mbps is not enough for me. FTTC is not being installed here so move will likely require a house move.
Posted by lockyatlrg over 5 years ago
Left my o2/be connection of 5 years for BT infinity and it's the best move I made if I'm honest. Fast speeds and when my line was broken I have to say it, BT where excellent at fixing it very quickly.
Posted by nredwood over 5 years ago
The figure will include BE and BE Wholesale connections
Posted by cscsonline over 5 years ago
I moved from O2 to BT Infinity to get faster speeds. O2 was great.
Posted by David-Park over 5 years ago
I'm having no problem with my Be Unlimited, strange you O2 people have.
Posted by fibrebunny over 5 years ago
FTTC is a game changer and they are effectively locking themselves out of the market until they sort themselves out. 02 went cheap and threw cashback around like confetti, it was obvious how that would end up.
Posted by rainman100 over 5 years ago
Left Talk Talk because of their dismal performance, have signed up to 02 they said I should get 4 meg download and 1meg upload, been with them a week , constantly on the phone speeds vary between 1.5 and 2.5. I am not a happy chappie, think I will change before trial period runs out.
Posted by audioslim over 5 years ago
Yep, its becuase their packages are much poorer than a few years ago, and prices have increased.

No brainer really!

The few aspects of their service that made BE/O2 the best ISP for a good few years have been erroded, and now its just average , along with the rest.

Posted by Gethryn over 5 years ago
I dumped O2 after 4 years because it was only cost effective if one also subscribed to O2 mobile phone service.

O2 mobile around here is known as NO2, very poor coverage. They also increased my tariff package without informing me!

Also, when I had a performance problem due to a noisy line, they passed the buck to BT who passed the buck back to O2. I moved my broadband ISP to BT Internet who then had to deal with the problem!
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