The highly anticipated launch of the UK’s biggest mobile network O2 into the treacherous world of the ISP market has been delayed further, but for no official reason. It is now likely to be launched for customers to sign up in October 2007, which is ten months later than planned.
There are numerous possible reasons for the delay, one of the principle ones being the very poor second quarter of the year that O2 have experienced, seeing their new customer rate vastly drop from 470,000 new customers this time last year to merely 34,000.
There have been problems for O2 in Germany in particular this year where they have dropped roughly 10% growth, due to the large number of competing networks there (around 40 in total). There have also been problems with the actual network coverage for O2’s broadband service in the UK and only half of the country is currently ready to receive the connection.
O2 have also launched their new ‘simplicity’ mobile tariff range this summer, which again, might have been a factor in the delay. The first of its kind, ‘simplicity’ blends pay-monthly and pay-as-you-go deals and is attracting new customers as the prices have been cut, due to you being able to keep with the same handset if you wish to and just receive a new contract through a new sim-card. This is also part of O2’s commitment to We’re in This Together, the environmentally friendly group that they are many other high-street business are part of as old mobiles requiring the correct disposal now ranks in their thousands.
The expected broadband service is being touted in all sorts of ways and there are rumours that it will be maximising connection speeds to new levels and reaching 24MBs and beyond. The Chief Executive of O2 Peter Erskine has defended the delay by saying “The one thing I will not do is launch something that isn’t ready. We have learned from the mistakes of some of our rivals”.
Indeed some of their rivals have drastically struggled for validation within the ISP market. Vodafone joined the market in 2006 and, although offer a fairly tempting all-in-one deal, many customers have been very unhappy with the service. As for Orange, another mobile network giant turned ISP wannabe, their performance is considered one of the very worst. So much so that a website called Orange Problems has been set-up for disgruntled customers to vent their anger. Only time will tell whether the wait has been worth it for O2.
Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.