O2 plc

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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, previously part of BT Group plc. After a period of independence it was acquired by Telefonica of Spain, with the offer becoming unconditional on 23 January 2006. [1] At 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.

1 The Launch Of Cellnet
2 Networks
3 Recent history
4 UK Competitors
5 External links

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The Launch Of Cellnet

Image:Cellnet.jpg Image:Btcellnet.gif

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 Mobile arm of BT, alongside the firm's Irish, Dutch, and German mobile businesses.

O₂ was created 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 oxygen - as were all the group's other businesses (other than Manx Telecom).

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Networks

O₂ owns mobile phone businesses in the UK, Republic of Ireland and Germany. 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 900MHz and 1800MHz 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 2100MHz. 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.

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]

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Recent history

In February 2004, the company was subject to rumors 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 31st 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 Telefonica.

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