O2's broadband move ignored

DESPITE THE fact that Oh Dos (O2) is trailing in the race to provide 'fourplay' services, the UK mobile operator's commitment to provide broadband to key UK customers has sparked no takeover fever.

With rivals like Orange and Carphone Warehouse already offering 'free' broadband connexions and Virgin Mobile being heavily tied in with NTL/Telewest, O2 is beginning to look a bit vulnerable in its range of offered services.

Everyone these days seems to want to offer cellular; landline; broadband and TV services - the so-called fourplay. Indeed, BSkyB's acquisition of UK ISP, Easynet, is a classic demonstration of this strategy.

Yet Oh Dos' declaration to the FT that it will launch a broadband offering to its key customers in Q2 2007 has led to no outburst of takeover fever, whatsoever.

As far as the INQ is aware, O2's only broadband company is Be. Which boasts absolutely no Top Ten status. So if as Oh Dos supreme, Peter Erskine, claims there will be absolutely no re-run of the Carphone Warehouse broadband oversubscription fiasco, exactly how does the company intend to fulfil user demand?

There are a number of potential candidates including Entanet and Plusnet. However, as Plusnet runs over the Tiscali network in the first place, why not buy Tiscali UK since it is already in deep do-dahs?

A wily old dog like Erskine must be plotting something. Becoming a bigger provider of UK broadband connexions than former owner and market leader, BT, must be an interesting prospect. µ