O2 takes broadband nationwide

O2 are to extend their broadband coverage by using BT’s wholesale network.

O2 currently has modest coverage of the UK population with its LLU (Local Loop Unbundling) based broadband network, which it acquired when it bought ISP BE Broadband.

BE announced in March that it will unbundled 400 more exchanges.   After June, it claims it will have 67% coverage of the UK population, providing the service to an extra 2 million lines.

However, BE’s owner O2 has decided to go nationwide by using BT Wholesale to plug in the gaps, a sign of its intentions in the competitive broadband market.  O2 also launch a £6 Million marketing campaign to tempt consumers.

However, they may have their work cut out.  “Ovum is not convinced though that by itself it will be enough to propel the company into the ‘big five’ said Analyst Michael Philpott at Ovum. “To achieve this O2 will either have to go shopping and acquire another, larger, fixed broadband player, or become more innovative around creating a stronger link for customers between mobile and fixed broadband solutions - not an easy proposition, and so far one that others such as Orange have failed to do. “

Recently, O2 added a mobile broadband offering to their line-up, priced at £20 per month.  It is however currently only available to O2 pay monthly customers.