[3g-g]

As reported by the BBC. (http://news.bbc.co.uk/1/hi/business/4557779.stm)

O2 are a dark horse. They're making the money and sitting tight. When will they make their move?


Mobile phone operator O2 has reported that full-year profits more than trebled as it signed up new customers in the UK, Ireland and Germany.

Pre-tax profit in the 12 months to 31 March was £309m ($566m; 499m euros) from £95m a year earlier. Sales rose to £6.68bn from £5.65bn.

Europe's sixth-biggest mobile operator said its customer base increased by 3.26 million to 23.96 million.

O2, which was earlier called MMO2, split from UK phone group BT in 2001.

"Last year our mobile businesses in the UK, Germany and Ireland all delivered strong, profitable customer growth," said chief executive Peter Erskine.

He said, however, that there was a "background of intense competition in all our mobile markets".

[3GScottishUser]

No surprise to me. 02 have been pretty competitive lately in the UK with some carefully targetted offers on text and on-line offers that appeal to specific market segments.

More than holding their own against a huge tidal wave of competition - and well done to them for holding their own as an independent company. Another great British success.

[Ben]

I'm not convinced at the moment. For me, they seem to be cashing in on what they have and not investing enough in what happens next. They're (cleverly?) keeping themselves in the media with ideas for their future services, but in reality they just don't seem to be keeping up.

I know that 3G isn't going to be critical for a while yet, but it's going to take time to get the networks right - as Three, Orange and Vodafone have all discovered. If O2 isn't careful I think their 3G network just isn't going to be able to compete. When the other networks start using the cost-savings that 3G offers, O2's GSM offerings will start to suffer, and so will their profits.

By all means cash in on GSM while you can, but don't neglect next generation technologies.

[3GScottishUser]

I dont think 02 are ignoring technology......far from it. They are hedging their bets with parallel strategies using GSM, i-mode and 3G. It looks like they will offer a range of things and let the free market decide. The cost savings re UMTS vs GSM are a bit of a red herring. Sure the cost of carrying calls is cheaper in theroy on 3G but if you have a bought and paid for GSM network that is not over capacity that is less important.

3G will take over for sure but the 02/T-Mobile caution suggests that timing looks to be every bit as important as the technology itself, history in electronics shows that trailbalzers dont alwys go on the dominate the market.... Sony's Betamax, IBM's PC, Motorola's Cellphone.... None of those companies are the market leader in their fields now but the technology triumphed thanks to innovation and refinements by others.

[Jon3G]

http://www.mobiletoday.co.uk/artman-test/publish/article_401.shtml

interesting reading