O2 Broadband Delayed

O2 has again delayed the roll-out of its BroadBand service in Britain and Germany due to teething problems. Originally due at the beginning of this year, we won’t see O2 broadband until at least September.
O2 bought small ISP Be Broadband and had originally planned to have a service running at the beginning of 2007.

Chairman and chief executive of Telefonica O2 Europe’s mobile phone unit, Peter Erskine, said the company would launch a UK broadband business in September, rather than in spring, after re-launching in Germany over the summer. "There is one thing that we will not do … to launch stuff that isn’t ready on the customer,"

We could have rushed out a converged service in Germany," Erskine said. "We chose to break it up into a simplified tariff and through the year will offer a broader range of services by launching DSL as well."

By the time September comes, the Be Broadband network will only cover half of the country, leaving O2 to negotiate a wholesale deal for the remainder. Otherwise it could only advertise in certain areas.

If they don’t go the wholesale route O2 will more than likely launch the service through its own direct channels to be able to concentrate on geographical areas where it can provide service.

"I suspect we’ll handle it through our own distribution channels," Erskine said.

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