O2 see 6% decline in broadband customers
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.