O2 all set to launch fixed-line broadband service in UK

UK’s largest mobile phone company O2 has announced their plans to launch their fixed-line broadband service on October 15.

They are aiming to get a 1 million subscriber base by 2010 for this new service. However, at the time of launch, the service would be available to only half of the population in the country.

The smallish target means that they are not considering challenging the dominating players in the market including BT, Virgin Media and Carphone Warehouse.

Market analysts believe that this service launch is basically aimed to enhance the loyalty of their existing customers so that they do not move to competing services.

The packages are optimized for their existing customers as they would be paying less (in a packaged deal) compared to new customers.