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Wednesday, May 16, 2007

O2 Be Broadband and Unbundled Britain

O2 also released their Q1 figures and Be* Unlimited broadband is standing at a mere 24k customers, which is up 7.2k on the quarter. Be* had unbundled 632 exchanges as at 31/3 with 40% UK Population coverage and have continued since apace and the figure currently stands at 735. I think Be* will currently stand as the #3 unbundler in the UK in terms of absolute number of exchanges behind TalkTalk and Sky.

O2 must be losing money with all these exchanges and so few customers. Obviously a launch in needed into the O2 customer base and this has now been pushed out to Sept ’07, which incidentally is the month before the 18-month TalkTalk contracts start to expire. O2 claim the delay of three months is because they want a high quality product at launch and are not currently ready. O2 say they will be launching a converged product from their own direct outlets, but obviously there will be some overlap with the TalkTalk base.

Overall in unbundled Britain, the slowdown continues with another drop in the weekly unbundling statistics according to the Openreach KPIs: 41k gross and 28k net. This is down another 5k week on week and off from the peak of 86k gross and 74k net.