[3GScottishUser]

O2 has reached the 21 million customer mark, after adding 292,061 UK net mobile customers during the third quarter ended 30 September.

The operator added a total of 312,323 contract customers, but lost 20,262 prepay. The company now has a total of 9.3 million contract customers – a 13.9% year on year increase.

O2 said the increase in contract customers was down to ‘churn containment’, prepay to contract migration, tariffs such as its Sim-only ‘Simplicty’, and high-end devices such as the iPhone.

Churn in the contract segment was 1.2%, both for the third quarter and for the year to September 2009 periods.

http://www.mobiletoday.co.uk/Mobile_Exec/O2_reaches_21_million_customers_in_Q3.aspx

[Hands0n]

It is truly impressive how O2 can contain churn and develop such a loyal customer base. Especially so in the face of their appalling 3G network. Their strategies certain seem to pay off, however. That cannot be denied. And the figures speak for themselves.

It does beggar belief though :)

[miffed]

I am convinced that o2's "appalling" 3G network is as much a myth as Vodafone's "adequate" 3G network

Nice to see some figures that suggest I'm not alone !

[3GScottishUser]

It is truly impressive how O2 can contain churn and develop such a loyal customer base. Especially so in the face of their appalling 3G network. Their strategies certain seem to pay off, however. That cannot be denied. And the figures speak for themselves.

It does beggar belief though :)

Well 02 have been ahead of the game.

While all the rest were screaming 3G and had nothing to make it worthwhile 02 quietly got on building their user base with SIM only for students etc.

They were right, and now they have a lovely new deal with Vodafone which will expand their 3G network at a time when there is a decent market for mobile broadband and mobile Internet use.

02 seem to have been the smartest network player in terms of the race for technology.

It's paid off nicely to be cautious.

[Hands0n]

I am convinced that o2's "appalling" 3G network is as much a myth as Vodafone's "adequate" 3G network

I suspect that it is all to do with where O2 have placed their investment in infrastructure.

In the North Kent corridor and much of East and City of London the O2 3G quality of signal is very poor to non-existent. Where it is strong you find that the throughput is totally crap - possibly the backhaul circuits are inadequate. But whatever it is, even if you can connect to the 3G airside the throughput suffers terribly.

Recent practical experiences with swapping out the O2 SIM for a Vodafone SIM saw a remarkable order of difference. Not only is 3G ubiquitously available but it actually performs too. Speedtests and Pingtests were able to verify these, removing any subjectivity from the assessment.

O2 have not been technologically advanced - but they have shown themselves to be master negotiators. Only O2 could have turned the Dome into what it is today. Only O2 could sell so many PAYG and Contracts at what appear to be very affordable prices to the masses.

Clearly, O2 have not gone for any kind of premium product - adequate will do. And it has indeed paid off.

Good lord! Is our nation so totally addicted to mediocrity?

[Ben]

Sorry, but a lot of those new contract additions will start to fall away now they've lost iPhone exclusivity. I know the iPhone is the only reason why I'm with O2, and, bugger me, I can't wait to leave!

The tie-up with Vodafone will sort the coverage issues, but it's too late now.