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View Full Version : O2 says Be mine for £50m



Ben
20th June 2006, 03:05 PM
It's all go today.

http://www.theregister.co.uk/2006/06/20/o2_be/

Extract:

O2 is splashing out £50m to buy tiddly LLU outfit Be as part of an ambitious plan to offer broadband alongside its own mobile services.

Be only has about 10,000 customers - but that's not why O2 is buying the broadband operator. Instead, the cellco is interested in Be's infrastructure.

Based on ADSL2+, Be's network offers speeds up to 24 meg, and so far it's installed its kit in around 150 BT exchanges and plans to take that number to around 400 (serving half of the UK population) by the end of the year.

O2's plans are less clear-cut. For the moment it's business as usual, but at some point Be will be rebranded as O2. Exactly when remains unclear and O2 doesn't seem to be in too much of a rush.

It's also still too early to say how O2 will bundle its new broadband service - but it's possible by that time consumers will have tired of "free" broadband offers and opt for a more value-for-money approach.

O2 UK chief executive Matthew Key said: "This acquisition will enable us to take advantage of technology innovations to offer a wider range of joined up mobile, internet and content services for our consumer and business customers in the future."

News of O2's entry into fixed line telecoms should come as no surprise. Last month the cellco - the former mobile division of BT spun off from the incumbent five years ago and bought by Telefonica last year for £18bn - confirmed it was keen to offer fixed services.
It would seem owning a broadband player really is the 'designer baby' of Mobop land right now. Still, I can understand the infrastructure advantages, even if I can't quite see the consumer ones.

3g-g
20th June 2006, 04:02 PM
Surely it's only a matter of time 'till Vodafone do the same then? They can't allow Orange and O2 to snap up all the extra revenue from the BB punters can they?

As soon as we see HSDPA widespread, with operator Broadband supplied 24Meg WiFi hotspots making use of those integrated laptops with wireless and HSDPA built in WiMax will be out the window and everyone will need a GSM/3G/ISP network!

Hands0n
20th June 2006, 06:28 PM
Hmmm, things dont look to rosy in the UK for WiMAX at the moment. I suspect that WiMAX will end up in the infrastructure rather than in the "final mile" delivery.

O2 have done a sensible thing, if they are to be a "convergence" player. But where is all of this convergence truly leading? Are the general buying public going to be impressed with an eggs-in-one-basket approach?

3g-g
20th June 2006, 07:36 PM
O2 have done a sensible thing, if they are to be a "convergence" player. But where is all of this convergence truly leading? Are the general buying public going to be impressed with an eggs-in-one-basket approach?

The operators seem to think so! With Orange out there first and O2 following suit, it can only mean Voda and T will have to catch up, they can't allow those 2 to run away with it all!