Mobile operator O2 to take on BT in fixed line market

Mobile provider O2 has announced that it intends to take on BT in the fixed-line telecoms market, it emerged today.

Currently the UK's largest mobile operator, O2 was spun out from BT back in 2001, before being bought by current owner, Spanish firm Telefonica in 2005. Now O2 is looking to expand its operations, and is planning to start offering fixed-line phone services starting as early as next month.

In addition to mobile voice calls, O2 already offers mobile broadband and home broadband, so fixed-line voice is the logical next move for the company looking to increase its market share. The new fixed-line phone service will be offered to existing broadband and mobile customers as part of a bundle in the first instance, with discounts for taking all three services.

O2 claims that it is making the move becuase it recognises its customers' disatisfaction with their existing fixed-line providers, and claimes that it will offer some of the most competitive pricing in the UK.

Although the move will bring O2 up against its former parent company BT, it's not seen by most as an attempt to corner a big slice of the home phone market, more an plan to tempt more customers to its offering by providing a wider range of services, following the lead of mobile rivals Orange and Vodafone which already offer home phone services alongside home broadband.