O2 plc
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- The correct title of this article is O2 plc. It features superscript or subscript characters that are substituted or omitted because of technical limitations.
| O2 plc | |
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| Type | Public (LSE: TECZ) |
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| Founded | 1985 as BT Cellnet, demerged 2001, acquired in 2006 by Telefónica |
| Headquarters |  Slough, England, UK |
| Key people | Peter Erskine, CEO |
| Industry | Mobile telecommunications |
| Products | Mobile networks, telecom services, etc. |
| Employees | 7,826 |
| Slogan | “See what you can do.” |
| Website | www.o2.com |
O2 plc (known prior to March 2005 as mmO2 and usually stylised as O2, like the chemical symbol) is a British telecommunications company specialising in mobile phones. The company was previously part of BT Group plc as BT Cellnet. After a period of independence it was acquired by Telefónica of Spain, with the offer becoming unconditional on 23 January 2006. [1] By 31 December 2005 the company had 27.4 million customers in the UK, Germany and Ireland. [2] The company headquarters are in Slough, with major offices in Bury, Glasgow, Leeds, and Preston Brook. It has both retail outlets and technology sites located around the UK. In 2005 it acquired the name rights of the Millennium Dome.
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[edit] The Launch Of Cellnet
Originally launched in 1985 and named Cellnet, the company's UK operation was originally a joint venture between BT Group (then called British Telecommunications) (60%) and Securicor (40%). In 1993 it launched GSM services, and in 1999 Securicor sold its remaining shares to BT and the company was renamed BT Cellnet. The company became part of the BT Wireless arm of BT, alongside the firm's Irish, Dutch, and German mobile businesses.
O2 was created in 2001 when BT Group demerged its mobile phone business as part of BT's plan to strengthen its financial position following over-expansion in the 1990s. The BT Cellnet consumer brand was renamed O2 - the chemical symbol for unbound oxygen - as were all the group's other businesses (other than Manx Telecom). The rebranding was engineered by the Lambie-Nairn design agency, which developed the idea of the company supplying services that were essential, much the same as oxygen is essential for life. With this, the company logo and associated graphics were designed, using air bubbles to present this.
[edit] Networks
O2 owns mobile phone businesses in the UK, Republic of Ireland, Germany, Slovakia and Czech Republic. It also operates the fixed line and mobile phone networks on the Isle of Man. The mobile network, known as Manx Pronto, is used as an environment for developing and testing new products and services such as 3G prior to wider rollout. Manx Telecom is the only fixed line network the firm operates. O2 formerly also operated in the Netherlands, however this service (Telfort) was later sold.
In the UK the O2 network operates in the 900 MHz and 1800 MHz frequency bands, offering GSM and GPRS carrier services. This has been in operation since the early 1990s and maintains variously a 20-25% market share, with a disproportionately large share of the corporate market due to its BT heritage. The network recently launched a 3G, or UMTS, carrier network which operates in a different area of the electromagnetic spectrum around 2100 MHz. The network's analogue eTACS service was discontinued in 2000 as part of changes to the regulation of spectrum in the UK. O2 also operates a TETRA secure digital radio network called Airwave for the exclusive use of the UK emergency services.
In the Republic of Ireland, the O2 Ireland network is the former Esat Digifone 086 GSM 900 network which was set up in 1997. As of 2005 it had a 40% market share. It also has a UMTS licence in the Republic of Ireland but has yet to launch its 3G service and is losing ground to rivals Vodafone Ireland and 3 Ireland in this area.
O2's turnover for the year ended 31 March, 2005 was £6.683 billion. O2 is especially notable for its strong strategic partnerships with companies such as Research In Motion, manufacturers of the BlackBerry email product, and HTC, manufacturers of the O2 xda, Xda II, and Xda Exec Pocket PC devices.
O2's customer numbers at 31 December 2005, the last day of its final quarter as an independent business were 15.981 million in the UK, 9.769 million in Germany and 1.602 million customers in the Republic of Ireland. Its total customer base, including its small business in the Isle of Man, was 27.4 million. [3].
[edit] Recent history
In February 2004, the company was subject to rumours of take-over bids from KPN, the Dutch telecommunications group though these never came to fruition. As of 2005 rumours of KPN (and several other international network operators) bidding for the various branches of O2 persist, though following the company's posting of better than expected results so soon after demerger some speculation has shifted to O2 itself making bids for other businesses.
In March 2005, the company underwent a corporate reorganization, that saw mmO2 plc being delisted from the London Stock Exchange and acquired (via a share swap) by a new company, O2 plc, which was listed on the LSE in its place. The summer of 2005 saw the company under threat of crippling strike action by Communication Workers Union members following disputes over pay and remuneration, though unrelated to earlier job losses as part of the reorganization. This was resolved without strikes taking place after several months of negotiations between the company and the trade union.
In September 2005, the network trials of both i-mode and Mobile TV-over-DVB-H services were launched.
On the 31 October 2005, O2 plc agreed to be taken over by the Spanish telco giant Telefónica with a cash offer of £17.7 billion (€26 billion) or £2 per share. [4]. According to the merger announcement, O2 plc retained its name and continued to be based in the UK, keeping both the brand and the management team. The merger became unconditional on 23 January 2006 and O2 is now a wholly owned subsidiary of Telefónica.
In May 2006, the introduction of "My Europe" was announced by O2 and Telefónica. It will represent the first joint venture between O2 and Telefonica to lower roaming charges in Europe, however it does not eliminate charges for receiving calls, and as stated by the site, other charges "comparable with domestic call rates". [5] Despite its name, the service is only available to customers of Telefónica or O2, within the EU, who also stay within the EU, as oppossed to a geographical Europe. Since it applies to the EU only, it has been speculated that this is probably a response to Viviane Reding's plans to ban roaming charges by mobile networks within the EU[6], or more specifically, "require that international [within the EU] roaming charges are not higher than national roaming charges".
Telefónica has announced that the O2 brand will be used in the Czech Republic, to brand its mobile service (Český Telecom and Eurotel become Telefónica O2 Czech Republic). This has leading to speculation that the O2 brand may replace Telefónica's movistar brand.
In 2006 Telefónica O2 Slovakia win a tender for the 3rd mobile phone operator in Slovakia.
In the summer of 2006 O2 was awarded the contract to manage and supply the network and data networks for the Automobile Associations 3600 strong mobile patrol force. This contract was previously handled by Vodafone and is currently O2's largest corporate contract.
On february 2nd 2007, Telefónica O2 Slovakia start provide services in Slovakia for first customers "O2 Jednotky". On february 28th launch O2 classic services and open first shop in Slovakia (in Bratislava on Hurbanovo square).
O2 UK Has recently moved in to the broadband market by purchasing a small UK based firm named 'Be*'. O2 are looking at launching a broadband product in summer 2007 to the general public.
[edit] Sponsorship
O2 is the sponsor of the English Rugby team. The partnership went interactive in 2002, when England fans were offered access to daily updates from head coach Clive Woodward. In 2003 O2 launched a mobile video service in that allowed customers to download or stream video content related to the 2003 Rugby World Cup. O2 extended their involvement with rugby union in 2005, signing a new deal with the England rugby team and the Rugby Football Union, as well as O2 rugbyclass and Premier Rugby Ltd for the English Premiership. O2 also had a long standing relationship with Arsenal F.C., being their shirt sponsor until the start of the 2006/07 Premiership season. In 2005 a three-year deal was signed that saw O2 as exclusive Mobile Communications Partner. As of 2006, O2 is also a main sponsor of the BMW Sauber F1 Team. In June 2006 O2 were represented on the jerseys of the Ireland Rugby Team as they played the All Blacks, replacing previous sponsors Permanent TSB. In addition, they also sponsor Amateur Rugby League club, Runcorn Vikings as well as the Cork Gaelic Atheltic Association.
[edit] The O2 (Millennium Dome)
On 31 May 2005 O2 plc acquired the name rights of the Millennium Dome in London from Anschutz Entertainment Group. The Dome is therefore now known officially as 'The O2', although it is still popularly referred to under its original name.
[edit] Competitors
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United Kingdom |
Ireland |
Germany |
Czech Republic |
Slovakia
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[edit] External links
- O2 plc
- O2 UK
- O2 Ireland
- O2 Germany
- Telefónica O2 Czech Republic
- Telefónica O2 Slovakia
- Manx Telecom (Isle of Man division)
- O2 Airwave
- O2 Asia Pacific
- BT Online
- Profile on Yahoo!
- O2 Official UK Training Video
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| T-Mobile UK | Vodafone UK | O2 | Orange UK | 3 |
| Mobile virtual network operators |
| BT Mobile | Dot Mobile | Fresh Mobile | TalkTalk | Tesco Mobile | Virgin Mobile |
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Irish mobile phone companies
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| 3 Ireland | O2 Ireland | Vodafone Ireland | Meteor |
